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CSI Loan Relationship Pricing
CSI’s Loan Relationship Pricing can help your bank adjust interest rates and fees based on objective analyses rather than simply matching competitors’ offers. To make sure the new loan will result in overall profits for your bank, Loan Relationship Pricing automatically pulls information on the customer’s loan and deposit accounts. You can then enter information on the new loan, including the customer’s desired interest rate, and find out if this new account will allow you to maintain your target ROA and ROE levels.
Loan Relationship Pricing also provides detailed paper and electronic reports to prove that you’re using a sound basis for your critical loan pricing decisions.
Loan Relationship Pricing Overview:
- Creates consistency in your loan pricing process and identifies cross-selling opportunities.
- Evaluates the value of the complete customer relationship using your bank’s products and cost allocations.
- Uses “what if” scenarios to analyze multiple loan or single loan opportunities to determine the best fit for your customer.
- Uses ROA/ROE target calculators to determine appropriate target levels of return based on customer product mix.
- Incorporates the latest cost of funding assumptions from FHLB, Libor/Swap, U.S. Treasury, or other curves of your choice.
- Calculates the appropriate loan amount for a line of credit or construction loan using the draw schedule.
- Generates electronic and paper reports for review in loan committee meetings.
- Provides officer performance tracking over multiple periods of time.
Why does Loan Relationship Pricing deserve the Innovative Solutions Award?
Objectivity: Reduces the banks risk of committing to unprofitable relationships by providing clear and objective feedback to lenders on the true return levels of individual portfolios.
Compliance: Provides the Board of Directors with confidence of a well run and adequately managed bank by meeting the regulatory need for a sounds basis of critical loan pricing decisions.
Efficiency: Enables efficient and consistent pricing across all lenders and all locations based on objective analysis and not simply matching rates with other competing organizations.
Profitability: Allows the bank to provide the best possible combination of products, prices, and fees to existing and potential customers while maintaining and growing the profits of the financial institution.
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