In a market where capital is scarce, banks need accurate information about the competitive pricing environment—actual pricing practices such as negotiated terms and deals, interest rates, fees, discounts, waivers, and level of pricing policy integrity. To maximize revenue generation, enter new markets through acquisition or organic expansion, and price competitively within existing markets, bankers need localized competitive loan pricing.

The AFS Competitive Pricing Service—a key component of the Best Practices Leadership Council, powered by AFS—is commercial lending's leading price data benchmark. Challenged to sustain viability and grow, banks require more than anecdotal or generalized pricing data. This AFS service delivers specific competitive pricing metrics for relevant market segments, such as geographic regions (groupings by states, provinces, regions), facility/loan type, collateral type, deal size and risk rating to enable informed sales and revenue strategies and improved performance.

In AFS' experience, loan pricing varies widely across geographical areas, and similar borrowers can pay vastly different interest rates and fees. Even within a given market area, pricing can be widely dispersed. Banks that can capitalize on these market inefficiencies through expert intelligence can leverage best practices to apply consistent internal pricing policies and procedures, reinforce pricing discipline, and grow revenue. Banks can use the information from AFS' Competitive Pricing Service to develop "de novo" strategies for acquisitions, to influence market behavior, and to improve planning of incentive programs.

Benefits

	Establish effective and consistent pricing policy
	Develop pricing strategies by market segment
	Achieve significant incremental revenue from the existing book of business Make effectual use of price points Reduce discounts and waivers Reinforce pricing discipline
	Price within competitive constraints
	Obtain guidance on pricing when entering new markets
	Ensure pricing commensurate with risk
	Calibrate incentive programs appropriately

Features

	Extensive standard reporting package delivered quarterly
	Quarterly review of benchmarking results and market observations with bank management
	Optional Competitive Pricing Service workstation for data analysis, ad-hoc inquiries, and customized reporting
	Optional pricing oriented Lender Workstation modules, including: Enterprise portfolio and credit risk management information Revenue performance reporting Interest income Fee income Opportunity management reporting Upcoming renewals Exception pricing
	Optional analytic/consulting engagements relative to: Pricing policy Revenue opportunities Market price positioning Exception management

For further information about the AFS Competitive Pricing Service, please contact Earlie Stowe at estowe@afsvision.com or (850) 984-3327.