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9 Steps to Better Loan Pricing
August 6, 2018 @ 12:00 pm - 1:30 pm EDT$249
To grow loans, many banks are resorting to irrational pricing. Compounding the risk is an effort to extend maturities/amortizations and fix rates. Unfortunately, many lenders have no concept of the required rate to cover the bank’s cost and meet its profit objective nor have they learned how to win the borrower’s business on a basis other than price.
Lenders can add value by using their knowledge of the customer’s business and insight gained from financial analysis to show the customer how to make more money. This added value merits additional compensation. Many banks have found that employing a structured approach to pricing emphasizing value added can increase the bank’s net interest margin by as much as 25-40 BP.
The business of banking is risk management. A critical part of risk management is pricing for risk. Traditionally, banks have done a poor job of pricing for risk. Lenders often do not have a clear sense of how to translate risk ratings to risk premiums to be incorporated in loan pricing.
After completing this loan pricing webinar, participants will be able to:
- Define the measures and the determinants of bank profitability
- Understand the bank’s value propostion, competitive strategy and pricing philosophy
- Translate strategic goals to profit objectives
- Calculate the required rate on a loan
- Price for risk
- Price based on the value of the relationship
- Convince the customer that the bank/lender has added value to the relationship
- Sell benefits, not costs
Who Should Attend:
Lenders with 1-3 years’ experience, more seasoned lenders as appropriate, and Senior Management
$249 for Webinar and Playback*
Dates of Event
Monday, August 6, 2018
About Your Speaker
For 27 years, John Barrickman has served as President of New Horizons Financial Group, a financial services industry consulting firm nationally recognized as an expert in the areas of comprehensive credit risk management, credit process, loan policy formation, asset quality rating frameworks, risk based pricing and lender development. John is a frequent speaker and subject matter expert on credit policies and procedures at industry events nationwide. John is also a Consulting Associate for Capital Performance Group.