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
Steps to build the model
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.
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.
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.
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.
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.
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.
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
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