Loan & Deposit Pricing
"ProfitStars’ Margin Maximizer Suite, which helps financial institutions develop strategies to maximize net interest income, proved to be the loan and deposit pricing solution the bank was looking for.” A comment like this one is familiar with this superior solution.
This suite of products begins with strategy sessions to validate and enhance existing pricing strategies, develop new strategies, and work on practical strategies to earn high-quality, profitable customer relationships. The pricing software allows banks’ lending officers to fully understand loan and deposit profitability as well as support attractive pricing alternatives for customers wanting financing. The final step in the Margin Maximizer Suite process includes implementing a long-term financial management plan focused on the day-to-day pricing process.
Here is an example of how ProfitStars partnered with one client to help them take the guessing out of loan and deposit pricing:
At one bank for nearly 25 years, the bank made its own loan and deposit pricing decisions based on its competition and overall market conditions. “We were collecting data on what our competitors were doing, whether that was real estate, construction, or whatever. It was just pricing for the market. It was just a guess.”
The ProfitStars team conducted strategy sessions to validate and enhance existing pricing strategies, develop new strategies, and work on practical strategies to earn high-quality and profitable customer relationships. The pricing software allowed the bank’s lending officers to fully understand loan and deposit profitability as well as supporting pricing alternatives for customers. The final step included implementing a long-term financial management plan focused on the day-to-day pricing process.
“We now validate our decisions through the model,” said the bank. “And it allows us to track what the competition is up to. Quite often when we plug in their offerings, it’s obvious that they don’t know what they’re doing. So we feel comfortable now with moving on and letting the competition bury themselves.”