How Banks Can Better Use Grid-Based Pricing

Grid-based pricing is typically used to set the applicable margin of a loan based on specific performance measures, such as credit rating or cash flow coverage.  However, grid-based pricing can also be used to increase deposit balances.  The average borrower does not calculate their cost of borrowing and return on deposits on the economic value…

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What Relationship Pricing Means for Bank Performance

Many banks pride themselves on superior customer service, and approximately 90% of all community banks believe that they provide an above-average level of customer service (the math cannot work that way).  The reason bankers should want to provide an above-average level of service is to increase profitability, which translates to charging customers more in the…

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Relationship Pricing is Key to Performance

Community banks pride themselves on superior customer service. Approximately 90% of all community banks believe that they provide an above-average level of customer service (of course, the math cannot work that way, as half of all banks should be providing a below-average level of customer service). Research by various consultants shows that 80% of companies…

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