BIG Releases Next-Gen Loan Pricing Model

Banc Investment Group (BIG), a San Francisco-based capital markets unit of Pacific Coast Bankers' Bancshares, has launched the next generation of its loan pricing model, Loan Pricing Pro.

The enhanced version of Loan Pricing Pro is the first loan pricing model to enable community banks to improve risk-adjusted return on equity by using current loan performance data to gauge the monthly increase or decrease in credit risk. Loan Pricing Pro is automatically uploaded with new loan performance data on a monthly basis and derives this information down to the state level. The model soon will be driven by ZIP code or political area, BIG says.

‘The new version of Loan Pricing Pro is far more powerful because it helps community bankers properly align risk with return for the first time,’ says Chris Nichols, BIG's CEO. ‘By predicting the probability of default or loss each month, Loan Pricing Pro enables community bankers to compete far more effectively for top-tier loan customers and better manage bank profitability.’


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