New Syntellis Performance Solutions Report: Financial Executives Have Limited Confidence in Managing Profitability Performance
Financial Institution executives call for greater use of profitability analysis in uncertain industry landscape
Syntellis Performance Solutions, a leading provider of financial planning software, data and analytics solutions for healthcare, higher education and financial institutions, released a report that found 71% of financial institution executives have limited confidence in their institutions’ ability to forecast and manage profitability performance—despite their understanding of the growing importance of profitability analysis amid an uncertain industry landscape.
In addition, 87% of survey respondents believe their institutions should be doing more to leverage profitability analysis to inform strategic decisions, according to 2020 Profitability Perspectives, the fourth annual survey of executives from U.S. banks, credit unions and other financial services organizations conducted jointly by Syntellis—previously Kaufman Hall Software—and the Financial Managers Society.
A significantly greater percentage of financial executives (29% vs. 20%) describe their organizations as very prepared to use current planning processes and tools to forecast and manage profitability performance compared with the prior year, suggesting that some organizations have made considerable progress, according to the report.
“Leading financial institutions are simultaneously confronting a host of challenges to their profit margins from external factors, and realizing they lack the internal processes and tools to adapt strategically,” said Kermit S. Randa, chief executive officer of Syntellis. “The findings of our 2020 Profitability Perspectives report suggest that financial institution leadership teams are making headway, but still have a long way to go before reaping the full benefits of profitability analysis. With the focus on financial management and improvement at a record high, financial institution leaders need insights into what’s driving profitability so they can accelerate decisions and advance their business plans.”