improved profitability of credit, lending and deposit products
In an ever-changing market, lenders, credit issuers, and banks must develop compelling products – while considering the risks associated with a fluctuating economic climate. However, large and varied offerings can sometimes make it difficult to assess and achieve optimum profitability.
Existing methodologies for making these determinations are reactionary, intuition-based, and error-prone – and fail to optimally leverage historical intelligence for predictive analysis. Moreover, these processes are not easily repeatable and prone to inconsistencies.
Lenders, credit issuers, and bankers need a way to optimize product pricing strategies, and determine portfolio sensitivity to potentially shifting macroeconomic conditions.
dynamic insights into risk and consumer behavior
Forte allows for a data-driven, proactive and repeatable approach to evaluating risk and creating new financial products – empowering you to maximize portfolio profitability while prudently managing risk.
Built and proven specifically for the lending market, Forte also delivers unparalleled insights into your pricing structure. Our white-box approach allows you to evaluate pricing strategies using the analytics platform you already have in place. Unlike other pricing optimization solutions, you will have the opportunity to control and change the model as you see fit.
Corios’ Forte solution can help your team:
- Understand relationships between product design, customer behavior, economic conditions, and profitability
- Drive localized, more profitable, more efficient pricing decisions
- Assess the sensitivity of your lending portfolios, and visualize cash flow metrics compared to macroeconomic variable scenarios
- Understand price elasticity at the consumer and product levels
- Use historical data to project future fiscal performance
- Hone in on product dimensions most likely to maximize profits, and design products that are competitive and aligned with customer needs
- Estimate price response
- Optimize offerings while managing risk
- Respond to CCAR analyses
- Make fast, data-driven profitability and risk decisions
- Maximize financial results within adherence to core business rules and constraints
more about our Forte Solution
Client Case Study: Customer Acquisition Profitability Forecasting
Learn how a leading credit card issuer leveraged Forte to build the optimal offer design and maximize risk-weighted margin growth – resulting in $10–$50 incremental net margin growth per customer.
CLIENT CASE STUDY: REAL TIME PRICE SIMULATION AND OPTIMIZATION
Learn how an automobile lending portfolio leveraged Marcato to optimize pricing strategy – improving ROA by 2% and reducing pricing run time from hours to minutes.
Video: Optimizing Portfolio Pricing and Risk
Watch this video covering our proprietary approach for bringing consistency, control and transparency to the process of portfolio risk analytics.