Loans & Mortgage Pricing Solutions

Document created by Makenna.Brei Advocate on Aug 2, 2017Last modified by neillcrossley@fico.com on Sep 8, 2017
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With FICO® Optimization Solution for Loan & Mortgage Pricing you can:

  • Gain 5–15 basis points in incremental spread: Drive better results by outpricing — not underpricing — your competition
  • Deliver customer-level pricing: Replace rate sheets that only give you one price for every term
  • Align pricing strategies with customer price elasticity: Simultaneously improve both margin and volume by appropriately discounting rates
  • Deploy pricing strategies across all channels simultaneously: Create consistency between all sales and marketing activities
  • Enhance pricing strategy governance: Leverage process and approvals workflows to simplify the management of pricing decisions

 

 

FICO® Optimization Solution for Loan & Mortgage Pricing is a complete pricing solution for your loan / mortgage renewals and originations business.

Leverage analytically derived price elasticity models to implement granular pricing strategies that allow you to discover the set of prices that best align to your current goals. After seamless deployment to your frontline, maximize the effectiveness of your sales force with specialized tools designed to enhance the negotiation process and offer the most profitable price and term to each individual customer.

 

Increased Profitability

Effective Pricing Strategies

Powerful Sales Negotiation Tools

FICO® Optimization Solution for Loan & Mortgage Pricing provides significant margin increases without sacrificing volume by discovering optimal differentiated pricing strategies across the entire portfolio. You can gain 5-15 basis points in incremental spread. Don’t believe it? We’ll show you with your own data.

This is the only product on the market that delivers high-end analytics and optimization to enable maximally granular pricing strategies for both renewals and originations. Our solution allows you to go beyond simple regression models and scorecards and build truly effective price elasticity models that can be leveraged across your entire portfolio.

Our solution seamlessly connects backend-pricing strategies and front line sales negotiations with customers. Dynamic sales tools and integrated incentive control encourages adherence to the optimal strategies and generates higher net interest revenue without sacrificing volume or spread.

 

 

Key Features:

  • Scenario creation and comparison to carry out what-if analysis and to understand dependencies and sensitivities
  • Full customization for model development, report creation (using Tableau), profit valuation and optimization
  • Flexible interfaces provide tailored access to functionality based on roles or privileges
  • Immediate deployment of approved prices across all channels with zero IT resource requirements
  • Collaboration features let you share your work with colleagues and work together to create an optimized strategy
  • Improved governance of pricing actions
  • Business controls enable domain experts to adjust the pricing without need of IT assistance
  • Pricing based on granular population segmentation—down to segments of one—enables true customer-level pricing

Case Study | Other Loan & Mortgage Pricing Examples

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More Information:

  • White Paper: 5 Keys to out-pricing not under-pricing your competition
  • Info Sheet: Pricing Optimization solution for personal lending business
  • Webinar: Next generation in implementing optimized strategies
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