Cash flow analysis using simulation modeling

Cash flow analysis from NFP and EcoBanking

The lives of shareholders, investors, and auditors can be made easier, thanks to fintech start-up Eco Banking’s cash flow analysis system.

The EcoBanking System (EBS), developed by NFP for the Eco Banking company, applies novel methods of analysis to historical data that consider time delays and non-linear dependencies. In short, both historical data and forecasts are considered when modeling. The result is a system that enables quick and informed decision making for shareholders, investors, and auditors alike.

Andrey Garifov, Project Manager, NFP
Andrey Garifov,
Project Manager, NFP

Developing the financial analysis system

When expanding and developing the system’s capabilities, EcoBanking wanted to ensure the user interface was easy to use and for data handling to be kept simple. To meet these requirements, EcoBanking worked with NFP to create a system that can dynamically analyze cash flows, visualize modeling results and business risk factors in each period, and export these results to be used elsewhere.

The consultants at NFP chose AnyLogic as the simulation modeling software because of the easy integration with other systems and because the AnyLogic Cloud platform makes simulation models simple to deploy, requiring just an internet connection and a browser.

The resulting model from NFP fully satisfied the customer's requirements for cash flow analysis. It allows the easy input of company financial information, and the main elements of the model - an animated Cash Flow Tree, a trend chart, and a risk factor list - clearly show financial indicator changes both during operation and as a result.

For a business, the NFP model:

  • Calculates the "cost of living";
  • Assesses its financial sustainability;
  • Estimates the volume of lending needed for a specific amount and period;
  • Compiles a list of cash-flow risk factors for an existing company business model at different points in time.

You can check out public version of part of the system in the AnyLogic Cloud – EcoBankingSystem.

If you would like to read more about the application of simulation modeling to business processes, you may be interested in how USAA applied AnyLogic for investment planning and call center optimization.