No More Excuses – Leverage Loan Pricing For Better Results


Loan pricing models are commonly used now for both commercial and portfolio loan pricing. Nonetheless, some banks and credit unions remain on the fence, because setting up a loan modeling mechanism involves some discipline, time, and up-front costs associated with software, data gathering, potential strategy assistance, and reporting results. Their competitors have justified the additional resources because modeling provides more confidence of achieving overall income/return or growth targets when pursuing deals, or because modeling documents critical risk management assumptions like costs, turnover/prepayment information, and credit risk. Join this session to review how loan pricing models can translate into better decisions and results and to learn how to address cost justification.

You will learn:

  • The most common and useful outputs of loan pricing models
  • The institution-level measures to indicate improvement at loan pricing
  • How pricing information is used to justify a strategy change
  • Why it’s possible to offer a loan the market wants but your financial institution doesn’t

Darryl Mataya
Senior Advisor