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PrecisionLender Overview
This document provides an overview of PrecisionLender and how it helps banks. PrecisionLender is a commercial loan pricing and portfolio management platform that has been implemented in over 200 banks. It helps relationship managers win deals by quickly structuring solutions, build stronger client relationships, and create a more valuable brand. PrecisionLender provides real-time options for improving deals, understands relationship and portfolio impacts, and empowers managers with pricing analytics and recommendations from its AI assistant, Andi. This helps banks price deals more competitively, qualify opportunities earlier, and focus on the most profitable relationships.
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PrecisionLender Overview
- 1. This presentation includesconfidential information of Lender Performance Group, LLC. Any unauthorized review, use, disclosure or distribution is prohibited. By receiving this presentation, you agree to the terms contained in this paragraph and that it is covered by any applicable Confidentiality Agreement Independent Bank - PrecisionLender Partnership PrecisionLender Overview June 27, 2018
- 2. Who are we? Wedesign and deliver solutions that help banks manage pricing, understand relationship profitability and construct better credit portfolios. We do this by helping commercial relationship managers: • Win better deals by quickly hand- crafting solutions that meet their clients’ needs and bank objectives • Create stronger, more profitable client relationships through trust and added value, delivered through a constructive sales interaction • Build a more valuable brand for themselves and the bank
- 3. • Founded inMay 2009 • Implemented in 200+ banks • Serving clients ranging in asset size from less than $1B to over $1T • In implementation with a global bank across 6 countries • Currently pricing commercial transactions at a run-rate of more than $1 trillion per year • This is doubling every 6-12 months Who do we serve?
- 4. The brain ofthe bank… and how PrecisionLender fits inKey technologies drive quantitative and qualitative benefits across the lifecycle of a deal. Description Example Technologies Targeted Benefits 1. New Business Development 2. Deal Structuring & Pricing 3. Underwriting & Onboarding 4. Ongoing Portfolio Mgt Drive new business, both new-to-new (prospecting) and new-to-existing (cross sell, relationship expansion) Drive revenue with eye on broader customer relationship, ensure profitability of new business/supports strategy Document and validate new deals and renewals, onboard new clients onto bank platforms Maintain healthy credit portfolio, help continue to define and refine risk appetite of the future Enterprise-wide platform: improve sales efficiency, sales enablement, sales management and associated mgt routines Empower RMs to better serve clients, deliver revenue growth (spreads, fees, cross sell, deposits); gauge pro forma returns; improve win rate Underwriting efficiency improvement, reduce speed-to-market, enable straight-through processing for customer onboarding Reduction in loan losses, potential revenue driver (buy/sell, blind participations, securitizations, etc.) Deal Process Flow Because PrecisionLender drives profitable revenue, implementation is straightforward, the user interface remains consistent regardless of how it’s accessed, and makes other “brain” systems better, banks have found the most value implementing PrecisionLender early in any 4
- 5. What does theRelationship Manager use? • We constantly and immediately give RMs options on how they can improve a deal. • PrecisionLender is a sales tool…it’s a negotiation tool. • It allows the RM to easily focus on what is most important to the borrower. • It is like having a senior RM or pricing analyst helping you structure the deal in real time. • This helps lenders win better deals, build stronger relationships and build a better brand for the commercial bank.
- 6. What does theRelationship Manager use? • Easily understand overall Relationship Profitability. • Understand the impact on the relationship and the portfolio both if we win and if we lose this next opportunity. • Understand the impact on Net Funding and Net Commitment as a result of winning a losing. • Answer the basic and important question: if we win what is in our pipeline, how much will we grow the bank? • Better manage liquidity needs and improve investment portfolio returns
- 7. Meet Andi • Andi®is PrecisionLender’s virtual pricing analyst, powered by AI and machine learning. • Andi sees every deal priced by PrecisionLender clients. She learns what’s working and what’s not, as well as the pricing tactics of the best RMs. • She works with RMs as they price each opportunity, showing them how to make deals work, recommending structures, and even highlighting opportunities to expand a relationship. • Andi’s learning how to monitor RM portfolios to find new opportunities and detect anomalies. She’s even learning how to track the competition’s offers and ways they’ve been beaten in the past.
- 8. How is thisvaluable to banks?
- 9. How is thisvaluable to banks? • To the prospective client, the Relationship Manager (and the bank) feel smarter, more flexible, more capable and responsive • Every RM hates to be the used car salesman and say “let me go ask my manager.” It damages their ability to win that deal and it damages their ability to build a lasting relationship. • If there is a deal that will work for this client at this bank, the RM has complete confidence that this system (PrecisionLender) will help them to find it…and do so in a constructive and value-added way. • If a mutually acceptable deal is not possible, the RM (and the bank) can say NO with confidence earlier in the pipeline before expending substantial resources and putting the bank’s brand at risk. • At many banks, up to 50% of the deals that go into origination never make it onto the books because they were either unacceptable to the borrower or to the bank at the outset. Better qualification drives Improved efficiency and minimizes the damage to the brand from a failed or a “re-traded late” deal. • Understand where your competition is pricing along with where you are winning and where you are losing...and why. Have confidence in your pricing targets and grow where the best returns are available.