• MORTGAGE ASSET INVESTORS
• MORTGAGE SERVICERS
• RETAIL BANKING
• MORTGAGE BANKING
• COMMERCIAL BANKING
• AUTOMOTIVE FINANCE

Commercial Banking:

Deliver the optimal combination of products and prices to ensure continued profitability, customer retention and lifetime value.

Commercial banking, much like retail banking, focuses on customer retention and maximizing the non-interest and interest fee income from its banking relationships. However, the stakes with business banking are often larger based on the relative magnitude of transactions and customer lifetime value. The focus once again must be understanding customer behavior and presenting the optimal combination of products and prices to ensure continued profitability, customer retention and lifetime value.

Ensuring that the pricing on deposits and loans is “optimized” based on current market conditions and unique customer behavior is now mission-critical for sustainable competitive advantage and profitability. Whether you have an active, well staffed department dedicated to competing for commercial and farm mortgage loans or simply wish to acquire mortgages, there is a crucial need to understanding the value of the assets (based on the ability of loans to “perform”) and the optimized loss mitigation strategies to maximize portfolio value.

Long considered more art than science - based on the need for flexibility in dealing with uniquely “negotiated” circumstances - business banking has functioned without the advantage of science-based solutions that can improve results dramatically without foregoing the important “high-touch” aspect of commercial banking. That has changed. Response Analytics’ Commercial Banking solutions are based on a single platform that powers activities from customer acquisition through to loss mitigation. Commercial Banking solutions include:

Price Optimization: Optimize prices/rates for lending products needed to meet your business objectives, based on customer behavioral modeling.

Asset Valuation: Utilize behavior models based on servicing history to predict the “hold-to-maturity” values for each loan across an entire portfolio, to manage your business and profitably take advantage of asset acquisitions.

Loss Mitigation—Identify problem loans in a portfolio early and then determine optimal deal structures for each specific at-risk borrower. Loss Mitigation secures expected profits and reduces the likelihood of delinquency and default.