Forvis has unveiled a platform designed to assist lenders with pricing commercial loans.
The new LoanPricingPRO platform uses real-time metrics to help financial institutions manage and grow their loan portfolios and optimize their profitability goals, the public accounting and consulting firm said in a Monday (Feb. 5) press release.
By considering the value of existing customer relationships and conducting real-time profitability analysis, lenders can make well-informed decisions regarding proposed loan terms, according to the release.
“Many institutions are still heavily reliant on intuition for their pricing strategies, which often leads to an unclear picture of how profitable their loans really are,” Andy Morgan, a director with the enterprise risk and quantitative consulting team at Forvis, said in the release. “LoanPricingPRO can help eliminate guesswork leading to more quantitative and strategic pricing decisions.”
The key features of LoanPricingPRO include a benchmark calculator that offers profitability-enhancing recommendations, relationship-based pricing, custom risk-adjusted pricing, product-specific expense allocations, and configurable minimum and desired return on equity (ROE) targets, according to the press release.
LoanPricingPRO offers multidimensional reporting, enabling financial institutions to delve into the data, the release said. Decision-makers can track performance and analyze insights through a dashboard.
One of the key differentiators of LoanPricingPRO is the investment of time that Forvis professionals make to work with clients during the adoption of the platform, per the release. The firm’s team members assist clients in customizing pricing models within the tool and provide training to ensure optimal utilization.
“A loan pricing tool is only as good as the way it is configured,” John Bourquard, national practice leader for Loan Review Services at FORVIS, said in the release, adding that the company’s approach “allows us to use our insights and experience to help our clients unlock their full potential in ways that are unique to their needs.”
In another recent development in the lending space, CSG Forte and Lendica said Tuesday (Jan. 30) that they have formed a strategic partnership to allow small- to medium-sized businesses (SMBs) to borrow money directly from their software vendors. They are doing so though an embedded lending solution.
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