# Multi-Product Financial Model

This use case explains how to build a consolidated multi product financial model for financial services, lending and fintech businesses in Model Reef.

You will:

* Represent multiple products and portfolios in the branch structure.
* Combine loan book, fee, subscription and transactional revenue models.
* Integrate credit loss, funding, unit economics and opex across products.
* Produce consolidated P\&L, Balance Sheet, Cashflow and valuation.
* Use scenarios to compare product strategies and portfolio mixes.

Model Reef is not a regulatory reporting engine. It is a planning and decision support model that unifies product economics in one place.

## When to use this pattern

Use this pattern when:

* You operate several distinct financial products, portfolios or businesses.
* You want a single model that reflects the entire product suite.
* Product level economics need to roll into one group level view.
* You need scenario based comparisons of product strategies and mixes.

It brings together:

* Loan Book Growth Forecasting
* Credit Loss and Provision Modelling
* Unit Economics for Fintech Products
* Build a Capital Structure Model

## Architecture overview

{% stepper %}
{% step %}

### Branch and product structure

* Branches for each product or portfolio.
* Optional sub branches for channel or geography.
  {% endstep %}

{% step %}

### Product specific engines

* Loan book and interest income models for credit products.
* Fee, subscription and transaction models for non balance sheet products.
* Credit loss models where applicable.
* Unit economics models for acquisition and retention.
  {% endstep %}

{% step %}

### Shared costs, funding and overheads

* Central funding and capital structure models.
* Shared technology, operations and management costs.
* Allocation rules back to products where needed.
  {% endstep %}

{% step %}

### Consolidated outputs

* Group P\&L, Balance Sheet, Cashflow and Cash Waterfall.
* Product and segment performance views.
* Valuation metrics and scenario comparisons.
  {% endstep %}
  {% endstepper %}

## Steps to build the model

{% stepper %}
{% step %}

### Define product branches and mapping

Create a branch tree that reflects your product catalogue, for example:

* Group
  * Product - Consumer Credit
  * Product - SME Lending
  * Product - Payments and Wallets
  * Product - SaaS Platform Fees

Within each product branch, include:

* Drivers and variables appropriate to that product type.
* Revenue, cost, asset and liability variables.
* Credit loss and provision variables if applicable.

Ensure consistent naming and category structures so product outputs can be aggregated cleanly.
{% endstep %}

{% step %}

### Implement product specific engines

For each product branch:

* Use Loan Book Growth Forecasting for products that involve lending or credit exposure.
* Use Unit Economics for Fintech Products for subscription, payments or transactional products.
* Apply Credit Loss and Provision Modelling where credit risk is present.
* Configure product specific opex and staff models for servicing and operations.

This gives you:

* Product level revenue, cost and contribution margins.
* Product level loan balances and provisions where relevant.
* Product specific CAC, LTV and other KPIs.
  {% endstep %}

{% step %}

### Integrate funding, capital and overhead

At group or holding entity level, create:

* Liability variables for funding sources such as deposits, wholesale funding or equity linked instruments.
* Equity variables for capital injections or distributions.
* Opex variables for shared costs such as technology, operations, management and compliance.

Decide how you will treat shared costs:

* Leave them in central branches for management reporting, and
* Optionally allocate them back to products using drivers such as revenue, balances, transaction counts or staff time.

Use the Capital Structure and Funding patterns to model:

* Leverage and funding mix.
* Interest expense and net interest income.
* Debt service and headroom.
  {% endstep %}

{% step %}

### Build consolidated reports and product views

Using the reporting tools, construct:

* Group P\&L, Balance Sheet and Cashflow that aggregate all product branches and shared items.
* Product P\&Ls by filtering by product branches.
* Segment views by channel, geography or risk segment if you use those structures.
* Cash Waterfall for the entire group.

Ensure that category mappings are consistent so that:

* Each product’s revenue and cost lines appear in the right report rows.
* Loan, funding and provision balances reconcile across products and group.
* Shared costs are presented according to your management reporting preferences.
  {% endstep %}

{% step %}

### Use scenarios for product strategy and portfolio mix

Clone the base model into scenario models to explore:

* Product growth strategies by segment and region.
* New product launches or retirements.
* Different allocation of investment between products.
* Pricing, risk appetite and underwriting changes by product.
* Funding strategy changes that affect the whole portfolio.

In each scenario, adjust:

* Product level growth, pricing and unit economics drivers.
* Credit loss and funding assumptions.
* Shared cost levels and allocation rules.
* Capital structure and dividend policy where relevant.

Compare scenarios using:

* Product level and group level P\&L and margins.
* Capital and funding requirements.
* Valuation metrics at product and group level.
* KPIs such as NIM, LTV to CAC and return on equity.
  {% endstep %}

{% step %}

### Build dashboards for product and portfolio insights

Create dashboards that show:

* Revenue, margin and profit by product and group.
* Loan book and exposure by product and risk segment.
* CAC, LTV and payback by product.
* Credit loss and provision metrics.
* Cash and funding positions.

Add filters and scenario selectors so stakeholders can explore:

* Product performance across time and under different scenarios.
* Portfolio composition under various strategy options.
* Sensitivity of group outcomes to product level changes.
  {% endstep %}
  {% endstepper %}

## Check your work

* Product level outputs reconcile with historical financials where applicable.
* Shared costs and funding are treated consistently across products.
* The consolidated group view is coherent and matches how the business is managed.
* Scenario comparisons support real strategy and capital allocation decisions.

## Troubleshooting

<details>

<summary>Consolidated results do not match accounting reports</summary>

Check that all product branches and shared cost and funding branches are included, and reconcile starting balances and one off items.

</details>

<details>

<summary>Product performance is hard to compare</summary>

Standardise KPIs, category structures and naming conventions across products and simplify outputs to a small set of core metrics.

</details>

<details>

<summary>Model becomes unwieldy with many granular products</summary>

Group similar products into cohorts for planning, keeping detailed product level models only where the economics differ materially.

</details>

## Related guides

* [Build a Multi Entity Group Model](/how-tos/core-modelling/build-a-multi-entity-group-model.md)
* [Build a Multi Period Comparison Dashboard](/how-tos/dashboards-and-reporting/build-a-multi-period-comparison-dashboard.md)
* [Subcategories](/help/building-your-model/subcategories.md)
* [How to Enter Values](/syntax/how-input-fields-work/how-to-enter-values.md)


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