UBQuant

Assessing net income had traditionally been the common metric used by the Uniform Bank Performance Report (UBPR) to measure banks’ performance. However, considering the multi-dimensional growth that the banking industry is currently going through, the ‘net income’-approach does not truly reflect its asset efficiency today. This is evident from the revision of UBPR analysis after the 2008 financial crisis and subsequent bank stress-test requirements. The performance evaluations now focus on profitability-based measurement metrics instead of net income alone to measure a bank’s performance. This approach gauges the extent of operational efficiency as well as captures the nuances of banks’ diversifying earnings through non-interest income activities and helps banks in managing their costs. However, for regulators and banking institutions, performing such analysis efficiently and cost-effectively poses some critical operational hurdles. Nevertheless, it is imperative for the banks to streamline a diverse set of unstructured business data and manage their bank performance more objectively to define their growth and profitability goals clearly.

Determined to streamline such bank performance evaluations, UBQuant was formed. The Washington D.C.-based company helps banking institutions— big or small—leave the days of tedious banking data management behind. The UBQuant platform transforms the traditional approach of UBPR analysis by removing the data complexity and data management challenges for the developers and by providing intuitive interfaces for the financial analysts. The platform offers a comprehensive analytics solution for the UBPR and Call Report analysis, with standard or custom bank peer groups and ratio analysis. “Our tool makes the complex data points easy to assess and perform benchmark analysis, empowering you to focus on What-Ifs,” says Kishore Gorjala, founder and CEO of UBQuant.

Our tool makes the complex data points easy to assess and perform benchmark analysis, empowering you to focus on What-Ifs

The company’s cloud solution provides the data at the fingertips of UBQuant clients to perform analysis with intuitive and responsive interfaces.

To elaborate on the functional capabilities of UBQuant cloud platform, Gorjala cites one of his company’s recent partnerships with a banking institution. The bank’s ongoing regulatory compliance reports generation and presenting to the board of directors has always been a concern for the bank president for one key reason – too complex and time-consuming, yet not good enough results. However, with UBQuant’s bank performance-analytics platform, envisioning the performance through multiple dimensions became a seamless task and the analysts can focus on What- If’s more than how to generate reports. The bank now collates and visualizes all the data—in all possible data combinations—in real-time, to measure the holistic performance of the bank in an intuitive way.

Today, banks can also leverage UBQuant’s innovative platform for their unique ability to create custom peer groups. These peer communities aim to define target benchmark related groups, pick their preferred set of banks, and access any metric and financial ratios to compare against. UBQuant helps banking institutions with standard and critical financial ratios (key indicators of the financial performance of the entity). The company has organized the industry standard financial ratios for intuitive access and better analytics. Additionally, banks can define their own financial ratios and make it their way of analyzing the data, while UBQuant’s insights engine transforms the data for clients’ needs.

At present, UBQuant is working on the beta version of their solution for banks and financial institutions that are working with the Community Reinvestment Act (CRA). The add-on solution is stipulated to help financial institutions meet the needs of borrowers in all segments of their communities. The company is also refining its intuitive data visualization aspects with features like a heat map. Above all, UBQuant is setting up the foundation to unify economics, and streamline the UBPR compliance process for future data analysts.