Strategic Loan Pricing Webinar
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.
Webinar Description and Intended Audience
With intense competition to capture loans, now more than ever it is important to have a strategic approach to loan pricing. This includes adequately covering your bank’s costs and meeting profit objectives. It also includes 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.
- Using odd-decimal pricing
- Using the drivers of loan profitability to “scout” your competition
- Differentiating the rate on all risk metrics
- Recognizing economies of scale on larger loans
- Comparing relative loan pricing within your portfolio
- Watching out for loans that are typically under-priced
- Giving the customer pricing options, even if not requested
- Using “grid” or performance pricing
Who Should Attend?
Small business lenders, commercial lenders, community bankers, private bankers and others involved in the lending process.
Webinar Viewing Options
INCLUDES 7 DAYS OF UNLIMITED ONDEMAND PLAYBACK! With this option, you will participate in the webinar live, via the internet. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. You can type and send your questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate at the same time. And don’t worry if you miss the webinar, you can still view it for up to seven days after it takes place!
SIX MONTH ONDEMAND VIDEO:
With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it a very effective training tool. The OnDemand Video will be available to you (and anyone else in the company) for six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.
If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of any applicable handouts and a CD-ROM (featuring the full-color PowerPoint presentation with audio) via regular mail. Mailed 7 to 10 days after the webinar takes place.
Webinars can be scheduled and offered exclusively for your company. They can even be customized to best fit your needs. To find out more, please complete the in-house request form found in the Schedule and Registration Information section below.
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.