With increased access to data and robust analytics, banks no longer need to rely on anecdotal information when setting hurdle rates. While using pen-and-paper and spreadsheet methods for loan pricing might have worked just fine in the past, these outdated techniques no longer provide banks with the full capabilities they need to increase wallet share and grow margins.
To gain that crucial competitive edge, banks need to implement an innovative digital strategy that includes digitization of the pricing process.
Why digitize the pricing process?
Strategic pricing initiatives require an innovative approach that utilizes a digital pricing platform to replace traditional methods. If your lending firm's loan pricing process relies on any sort of spreadsheets or manual actions, or if it's overly reliant upon qualitative factors, you're lagging far behind the competition.
Executives, relationship managers and risk managers all benefit from implementing this new technology through the following upgrades:
- Reducing manual processes through automation to standardize the pricing process.
- Enhancing the bank's risk governance and regulatory compliance.
- Creating frictionless customer experiences.
- Automating crucial processes.
- Adding digital controls.
- Leveraging data.
That's just the tip of digital-pricing iceberg, too. With executives, relationship managers and risk managers all standing to gain considerable efficiencies and improvements to their roles during the pricing process, lenders simply can't afford to keep plugging away using archaic techniques. Not only will this help banks and financial services companies remain competitive, but it will also make put them in a better position to take advantage of the digital disruptions in this sector to boost revenue potential.
To read more about how to reap the rewards of digitizing your pricing process with the DealPoint platform from Brilliance Financial Technology, download our latest eBook today.