Does your bank or credit union have a tried-and-true formula for pricing that it has used for years? Does it rely on basic inputs like loan-to-value and debt-to-income ratios? It may be time to rethink pricing and its impact on business results.
Just as the financial services industry isn’t the same as it was just a few years (or months) ago, your pricing models shouldn’t be either.
To stay competitive in today’s dynamic market, your pricing team should look beyond the typical statistical models and risk-based pricing inputs.
A more holistic approach to setting rates on loans and deposits will allow you to increase business from existing customers and attract more of the types of customers you want.
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