Advanced Earnings Methodology (AEMSM)
Lodestone works with community, regional & multi-regional financial institutions to improve bottom line profitability by examining core systems, policies and practices to develop, present and increase net-interest margin & non-interest income through our Advanced Earnings Methodology (AEMSM). All this income opportunity is achieved without increasing fees, decreasing staff or cutting utility bills.
- All AEMSM recommendations represent best practices and sound banking. Sixteen years of bank heuristics are essential to producing results.
- The AEMSM is a five to eight week project with a singular focus of improving our clients’ bottom line.
- During an AEMSM engagement, we examine and analyze core systems, products, policies and actual practices digging deep to find lost income opportunities.
- Our core systems experience and expertise include Fiserv, Jack Henry, Metavante, Miser, Hogan, HFS, and many others.
- We immerse ourselves into the financial institution keeping in mind operational and strategic plans, corporate and organizational culture, internal controls, customer impact, and the client’s market area.
- AEMSM projects are thoroughly documented using our clients’ own internal data. We dig deep into system settings and processes using Lodestone AEMSM exclusive queries and methodologies. Transactions are tracked from beginning to end to identify disconnects in how the system is intended to work vs. actual. Often small adjustments on the core system translate into significant income benefits.
- On completion of an AEMSM project we don’t leave our clients stranded and struggling with how to capture the found income. We transfer the knowledge. Clients are provided with detailed implementation and tracking procedures so that implementation goes smoothly and the success of the AEMSM can be tracked and measured.
- AEMSM projects have resulted in an average increase of $1 Million pre-tax annual earnings per Billion dollars in assets – and we do all this without increasing fees, without reducing staff, and without analyzing utility bill efficiencies.
Methodology
Identify
During the identify stage, our team takes a broad look at a client's general ledger, systems, operations and controls.
Analyze
Our ability to uncover unrealized profit is the result of rigorous analysis. Initial assumptions identify the areas we microanalize.
Recommend
Our recommendations for profit improvement are presented and quantified on an ongoing basis.
Execute
One of our core commitments is to not only identify profit opportunity, but also show the steps to follow to realize the profit.
Measure
We provide a client measurement tools and performance metrics. Measuring and tracking performance is key to achieving success.
Follow up
Are things on track? If not, we can typically provide the insight to get things back on track. That's our commitment to every client.
Results
So exactly where do we find these opportunities? Our Success Path leads us to find "white-spaces" within the cycles of your products and services. These gaps are where potential income is not being realized causing you to lose income every single day. Lodestone develops recommendations to close these gaps, enabling you to immediately realize your full income potential.
With over sixteen years of helping bankers identify and close these income gaps, Lodestone's recommendations point to the factors that contribute to lost income. As illustrated in this pie chart, these areas of lost income remain hidden within less profitable core system parameter settings & policy vs. procedure errors that prevent eligible income from being realized on your General Ledger.
Lodestone’s Advanced Earnings Methodology (AEMSM) finds lost income, and then we write pinpointed recommendations that take you step-by-step through the implementation & tracking procedures.
One client called our AEMSM the ‘Big Dig'. Another client called it a ‘forensic analysis of his operations and systems’.
Now that you better understand the opportunity that we have in working together, please take the next step and find out more about becoming our next client.
