Case Study

San Antonio Federal Credit Union To Help Manage Strategy in a Volatile Interest-Rate Environment, San Antonio Federal Credit Union Successfully Implemented a Funds Transfer Pricing Solution in a Very Short Time Frame When the executives at the San Antonio Federal Credit Union developed a strategy to use matched-term funding to better understand their organizational profitability, they turned to Funds Transfer Pricing from Fiserv.

Funds Transfer Pricing accurately measures net-interest margin by reflecting the economic characteristics of each customer account and instrument. The system avoids the built-in limitations and inaccuracies of a simple pool-based approach and provides a comprehensive set of allocation techniques. We found ourselves in a highly volatile interest-rate environment, said Mark Dwyer, first vice president at SACU. We purchased Funds Transfer Pricing, which was installed, implemented and brought up to speedwith management buy-inall in a very short amount of time. During a period with 11 consecutive drops in the federal funds rate, SACU was able to tie strategy to discipline, using Funds Transfer Pricing analysis instead of gut feelings to move rates. Because of Funds Transfer Pricing, we were better able to understand the various components of our margin and really drill down through the specifics of those components. That knowledge allowed us to maintain a pricing discipline, hold prices, and really trust the Funds Transfer Pricing reports, thereby maximizing our margin. We didnt have to rely on emotions. Funds Transfer Pricing gave us the discipline to stay the course, said Dwyer.

San Antonio Federal Credit Union

Client Profile For nearly 75 years, SACU has grown and prospered with its community. Founded by 12 workers at Duncan Field (later Kelly Air Force Base) in the midst of the Great Depression as a way for the common man to be able to pool resources and to make loans to each other, SACU has blossomed into a multi-billion dollar, full-service financial institution serving nearly 250,000 members worldwide. While SACU is growing larger, just as San Antonio has grown to become the 7th largest city in the U.S., neither has forgotten its heritage.

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That discipline has paid off. Dwyer said that within one year, SACU saved approximately $4 million with Funds Transfer Pricing. We would have taken advantage of the rate cycle regardless, but without Funds Transfer Pricing, we would not have been as stringent with pricing, he continued. We can point to specific savings and link them back to the discipline from having the product in place. Users at SACU were astounded by the quality of data and the precision of highly customizable reports. We were very picky about getting things to tick and tie within reports, said Laurie Thomas, assistant vice president, treasury management. The canned reporting was excellent on its own, but we worked with Risk & Performance Solutions at Fiserv to get specialized reports that ticked and tied to our specifications. We were delighted with the quality of support and amazed at the level of detail right at our fingertips. Small credit unions and banks might not think Funds Transfer Pricing can help their institutions, but it can. Anyone can benefit from Funds Transfer Pricing said Dwyer. Risk & Performance Solutions provides good value, excellent customer support, and products that are flexible and easily accessible. We find theyre designed and priced exactly for what a credit union needs.

Challenge San Antonio Federal Credit Union wanted to better understand and improve organizational profitability through the use of matched term funding. Solution Funds Transfer Pricing Proof Points Supported and validated business strategy with insightful profitability intelligence Benefitted from rich data through extremely customized reporting Realized overall net savings of approximately $4 million dollars in the first year of use

Connect With Us For more information about Funds Transfer Pricing or other corporate performance management solutions from Fiserv, please contact us at 1-800-872-7882 or visit www.fiserv.com.

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