Improving Loan Profitability

Given the current state of interest rates, loan pricing has become extremely competitive, and net interest margins have taken a hit at most financial institutions. This intense competition often forces bankers to price loans based on the competitive landscape - to simply match prices quoted by other institutions - not knowing if the loan is priced correctly or profitable for the institution.

To eliminate this opacity in pricing, more and more institutions have sought the help of pricing models and software to aid in measuring the profitability of loans and customer relationships. In this paper, we look at the objectives of a systemic loan pricing model and functions that such models can play in the institution.

 

Download to learn:

  • How loan pricing models can benefit the financial institution
  • Recommended models to use to improve profitability
  • Relationship profitability and pricing

Download the Whitepaper