With intense competition to capture loans, plus ever-changing levels of interest rates, it is important to have a strategic approach to loan pricing – not just matching or reacting to the competition. This program outlines the ways your bank can cover costs and meeting profit objectives by differentiating loan interest rates to reflect relative risk, plus knowing that you CAN win the borrower’s business on a basis other than the lowest price.
This session will cover seven strategic concepts. Along the way, we will demonstrate how to measure loan profitability and calculate the required rate of return on a loan. We’ll discuss how to use the components of most loan pricing models to understand where you have a competitive advantage – and also where your bank does not have an advantage. Another important concept is getting premiums for taking risk and for adding value to the customer relationship, and ways to compete with a lower rate for volume or when you are able to mitigate risk better than your competitor can.
Covered Topics
The key drivers of loan profitability
Using the drivers of loan profitability to “scout” your competition
Differentiating the rate on all risk metrics
Recognizing economies of scale on larger loans
Watching out for loans that are typically under priced
Other strategies to consider
Who Should Attend?
Commercial lenders, private bankers, small business lenders, community bankers, credit analysts, portfolio managers, assistant relationship managers, lending managers and credit officers.
Instructions
Live Plus Five – $265
Register for the live event and get five days access to the OnDemand Playback. You’ll have opportunity to ask questions during the presentation and be free to review the content for the next five business days. Registration also includes links to presenter materials, handouts, and pdfs.
OnDemand Recording Only – $295
Includes a weblink for unlimited viewing for 6-months after the date of the webinar as well as a link to handouts. Does not include live session.
CD-ROM and Hardcopy Handouts – $345
CD-ROM plus Hardcopy Handouts. Does not include live session.
Live Plus Six – $365
Attend live; includes six months access to OnDemand playback. Combine the advantages of live attendance with an unlimited number of replays for the next six months.
Premier Package – $395
Includes all three options above. Live session, OnDemand Weblink, and CD-ROM plus Hardcopy Handouts.
Additional Locations
Want your branches to participate? Facilities within your organization will be able to participate without the travel costs of coming to one location.