Funds Transfer Pricing

From the FTP page in the Command Center, you can manage interest rates and rules for Funds Transfer Pricing (FTP), process FTP calculations, mark FTP processing as complete, and view FTP validation reports.

Funds Transfer Pricing (FTP) is an internal management system designed to allocate Net Interest Margin (NIM Net Interest Margin. The difference between the interest income generated on interest-earning assets and the interest expense paid out for interest bearing liabilities as a percentage of the interest-earning asset balances.) for every segment of your financial institution. NIM is typically a bank’s largest source of profit, representing 50% to 90% of its net income, which makes it important to consistently and accurately measure and analyze NIM. FTP enables you to do this by helping you determine where your margin is coming from.

Axiom’s FTP feature processes the yield curve data, key rates, and optionally prepayment information you provide for every financial instrument to support your analysis of customer, product, and organizational profitability.

The following table describes the tasks you can perform on each tab of this page.

Tab	Tasks
Interest Rates	Add new FTP yield curves Add or update rates for yield curves Add and configure key rates, prepayment rates, and prepayment categories
Manage Rules	Add and update rules for interest rates Assign methods and adjustments for FTP processing
Process FTP	Process FTP calculations Mark monthly processing as complete
View Reports	View validation reports for FTP processes NOTE: These reports will be available in a future release.