5 Features of Modern Profitability Analysis Softwares That Make Legacy Systems Obsolete

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With today’s profitability analysis software offerings, financial institutions can easily view and analyze various aspects of their business from all angles so as to identify the most profitable channels, customers, products, and segments. By gaining access to all of this information, those in leadership positions can make more timely and well-informed decisions regarding the next steps to take for their organizations.

With all of this in mind, what, exactly, are the features that make modern options leagues better than the legacy systems of old? Are they truly worth investing in, and can they take your company to the next level? To answer these questions, read on.

A Fully Connected Ecosystem

Many legacy systems of the time were intended to be used as independent programs, back when most applications required neither  connectivity to the Internet nor interoperability with other applications . But as more and more business processes are now being coursed through multiple software suites and cloud-based platforms, a new need has emerged: the ability to communicate with other applications.

Because most modern profitability analysis solutions use a common account-level cash flow engine for feeding computations as well as shared data and controls, you can expect seamless interactions between all of your different applications. As a bonus, external data or engines can also be incorporated into the system’s various processes. All of these features result in much smoother transfers of information between dashboards, balance sheet planning, fund transfer pricing, and profitability.

No Data Siloes

A fully connected ecosystem allows for data to be shared between different applications according to specific user permission settings. Such systems may also feature a single repository for data inputs and outputs, greatly reducing the likelihood of inconsistent data formatting. This prevents any single piece of data from becoming completely inaccessible to those who need it, eliminating bottlenecks that result from having to manually pass crucial information from person to person. Because of this, investing in modern software solutions will ensure that your organization won’t fall prey to the creation of data siloes.

Better Analytics and Insights

Most modern software solutions now come with integrated and out-of-the-box reporting and analytics features. Instead of spending hours manually setting up the system, financial institutions can instead use any of the hundreds of prebuilt reports and dashboards that these applications often come with. Because data can easily be accessed and updated by various applications in real-time, this allows advanced analytical engines to provide interactive reporting. With this information at the ready, employees can more quickly translate this data into insights, which can then be transformed into actionable outcomes. This allows staff to become more proactive and make quick decisions based on risk-adjusted performance reports.

User-friendly Interfaces

Many legacy systems of the past were rather difficult for employees to navigate and use. Given the highly technical nature of most financial institutions’ work processes, an unintuitive graphical interface can add unnecessary friction to what should be simple and straightforward tasks.

With a modernized profitability analysis software, however, organizations can enjoy a much smoother and hassle-free experience. For one, user-friendly architecture greatly reduces the burden placed on the technology when making any business changes. It also means that your employees won’t need to constantly contact the software developer’s support team for instructions on how to operate the software.

Simply put, a much more intuitive user interface allows staff to carry out self-directed changes and maintenance, greatly reducing bottlenecks and downtime in your business’s workflows. At the same time, this can drastically drive down the cost of training, which means a significant amount of savings for your company.

Fine-grained Data Models

When it comes to profitability analysis, financial institutions need software that can help them sift through and obtain a more granular view of the data. Unfortunately, most legacy systems are unable to do this, forcing staff to manually comb through, sort, and filter mountains of data just to find exactly what they are looking for.

By contrast, a modern profitability analysis application can empower staff with a fine-grained data model that is designed specifically for financial services analytics. Such an application can allow them to micro-segment data down to the individual customer level. At the same time, staff can gain the ability to inspect results with the ability to drill down from the line of business or product level to the account level.

Altogether, these functions can provide them with a better understanding of the profitability of certain products, services, channels, and other relevant aspects of the business. Additionally, a comprehensive software solution can allow organizations to conduct top-down and bottom-up approaches as well as the ability to reconcile all of the results.

The right profitability analysis software is a key component to any financial institution’s long-term success. Indeed, switching to a modernized solution is more than just a practical solution to the technical limitations of a legacy system. Rather, it should be viewed as a worthwhile investment for your organization’s future.