Fixing the problems a branch has experienced in the past is important, but so is planning for future performance. Financial analytics have become very useful in this regard as plans and projections can be established and then compared to actual performance. Past performance can be used to establish these initial projections, but branch management should have the power to set goals that stretch the organization.
In an article in the January Edition of the Scotsman Guide, we wrote about how mortgage company financial managers are using powerful new analytical tools to help branch managers create better plans and then stay on track as the year progresses.
If each branch is required to submit a branch projection into the company’s overall financial plan, new analytical software used by financial managers can monitor branch performance and compare it back to those projections, communicating the need for adjustments to the branch manager in order to keep the branch on track. In fact, we have found that this type of real time connection between the branch and the home office is a best practice.
This is important because too often the branch manager is working in a vacuum, without access to expense information from other branches that could impact the local operation and fuel better decision making. Using software to give branch managers a window into the corporate plan gives them benchmarking information they can use to better manage their own branch in terms of revenue, net income, direct loan cost and more.
At the same time, it gives the CFO’s office — or even regional management — the power to drill down into the plan to view specific expense estimates in order to ensure that each branch is making sound financial decisions.
The full article can be found here: Scotsman January 2017 Edition
About the author:
Carl Wooloff is Mortgage Bank Accounting Technology Product Specialist at Bestborn Business Solutions, the company behind Loan Vision, the mortgage industry’s fastest growing provider of accounting and financial management solutions. Carl can be reached at Carl.firstname.lastname@example.org.