November 18, 2014 – Brilliance Financial Technology today announced a majority investment by Implement Holdings, an investment company focused on financial technology and services companies that serve the front, middle and back office. Implement Holdings is backed by the Edgewater Funds, a private equity firm partnering with Implement Capital LLC to identify high-growth companies within financial services. This investment will enable Brilliance to leverage Implement Capital's resources and expertise while also enabling the firm's rapid global expansion.
"A methodical approach to loan pricing can bring peace of mind to what is normally a stressful process."
The challenges of risk-based loan pricing
Loan pricing is a process that requires time and accurate data. Banks have to make sure they're meeting the requirements in terms of holding capital without compromising deals, taking risk into account along the way. A methodical approach to loan pricing can bring peace of mind to what is normally a stressful process, and investing in an automated platform like DealPoint may be the answer.
Risk-based pricing is the process by which banks address the amount of risk that customers are bringing into any loan agreement. High-risk customers are more likely to get a higher-interest loan, for example, according to the Consumer Financial Protection Bureau. Banks all have their own processes for coming up with this interest percentage, but they need to make sure they maintain the required level of capital.
Many Tier 1 banks still rely on spreadsheets and manual processes in order to manage their risk-based pricing and relationship profitability operations, but Brilliance's DealPoint software allows managers to automate these functions. By implementing this software, banks can take the "risk" out of risk-based pricing – in other words, their practices will become more effective and accurate.
Encouraging flexibility and success
Brilliance has been recognized in the past for bringing flexibility and sophistication to the financial services industry. The DealPoint solution helped Brilliance be named one of the Top 10 finance technology solution providers for 2016 by CFO Tech Outlook. Brilliance has demonstrated a keen dedication to helping banks develop better pricing models and become top contenders in the financial services space.
The draw of Brilliance's software is that it enables banks to seamlessly integrate the DealPoint platform with their other third-party solutions, like Moody's Analytics Risk Frontier DealAnalyzer, but also with proprietary solutions.
"The financial services space is going through a remarkable evolution," said Gregory Jones, partner at Edgewater Funds. "New, innovative firms like Brilliance are complete game-changers. We recognize the tremendous growth potential and the inherent value that Brilliance brings to the banking space. We're excited by what Brilliance is doing today and where they are going."
Through its partnership with Implement Holdings and The Edgewater Funds, Brilliance has been able to open new offices in the U.S., and has plans to open an office in Europe. In addition, the partnership has allowed Brilliance to have an important impact on the global financial services industry. Get in touch with Brilliance Financial Technologies today for more information about how the DealPoint solution can improve risk-based pricing and relationship profitability for banks across the board.