Amid deluge of data, First Niagara surges with SAS®
In time of growth, bank enhances profitability system to guide strategic business decisions
CARY, NC (May 17, 2010) – While the recent global economic crisis has generated numerous mergers and acquisitions and seen organizations fall, some institutions have grown substantially. First Niagara Financial Group (Nasdaq: FNFG) has more than doubled in size within the past year. First Niagara turned to SAS, the leader in business analytics software and services, to upgrade its financial tools when transforming from a community bank to a top 30 bank by market capitalization. Using SAS Activity-Based Management and SAS Profitability Management, First Niagara has built a seamless solution for calculating profitability by product, organization, customer and account.
“Since our leadership team believes in fact-based management, we needed best-in-class data and tools to support major decisions. As we continue to grow, we need to grow profitably,” said Brent Bahnub, Senior Vice President and Director of Business Intelligence at First Niagara. “Our executives understand the strategic value of a leading cost and profitability system; after a thorough vendor analysis, we selected SAS because they are the leader in activity-based costing and profitability management.”
First Niagara is using SAS Activity-Based Management to model costs, activities, processes and behaviors. SAS Profitability Management calculates profit and loss for each of its over one million customer accounts, and also by product, branch, or any combination of these cost objects. The results will dramatically improve First Niagara's capacity to strategically focus business, align resources toward the most profitable products, and lower costs by identifying and sharing organizational best practices. With SAS, the organization also plans to use intelligence to extract value including pricing optimization, utilizing capacity efficiently and other process improvements.
“Our executive management ranked this as the number one priority project in the company because they recognize the value of having the right information at the right time,” said Bahnub. “Since we know the profit of every account, we can price for profitability. We also know the capacity utilization of all of our branches and operating centers, so we have the information we need to optimize efficiency. This allows us to focus on shareholder value, to grow not just for growth’s sake, but to become more profitable overall.”
GJ Nolan & Co., a SAS partner and management consulting firm specializing in assisting financial services companies in measuring and managing for long-term growth and profitability, advised First Niagara in choosing a cost and profitability solution.
About First Niagara Financial Group
As a result of the Harleysville merger on April 9, 2010, First Niagara Financial Group, Inc., through its wholly owned subsidiary, First Niagara Bank, N.A., has $20 billion in assets, 255 branches and $14 billion in deposits. First Niagara Bank is a community-oriented bank providing financial services to individuals, families and businesses across Upstate New York and Pennsylvania. For more information, visit www.fnfg.com.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world
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