Correspondent Blog

Unfortunately, bank product pricing is essentially an afterthought in our industry. Few bankers study bank pricing, and few apply quantitative rigor to pricing optimization. We often price products and services without regard to cost, we price small loans against competition that also has pricing wrong, and we pay little attention to our products’ perceived value…

We have discussed the importance of bundling or packaging deposit account services to speed up customer choices, increase profitability, and enhance deposit performance. However, many banks still offer just two choices, whereas if they offered three, they would increase profitability. In this article, we examine how behavioral deposit pricing works and how to use it…

2022 will go down as one of the worst years for community bank loan mispricing when viewed on a spread basis. Rapidly rising rates crushed performance as many banks held a fixed rate constant and/or booked a fixed rate loan at a misguided level. Even though many loans were booked at below-par value (more information…