EXTON, PA — Automated Financial Systems, Inc. (AFS®) has launched the AFS Pricing Dashboard, an advanced tool aimed at providing commercial banks with enhanced loan pricing intelligence for Commercial and Industrial (C&I) and Commercial Real Estate (CRE) loans. This development marks a significant step forward in helping banks optimize their pricing strategies in an increasingly complex economic landscape.
Against a backdrop of economic uncertainty and uneven loan growth, commercial banks are under mounting pressure to manage the profitability of their loan portfolios effectively. The AFS Pricing Dashboard is designed to address these challenges by equipping banks with data-driven insights that allow them to optimize pricing on loan originations and renewals.
The tool provides a range of innovative features, including the ability to analyze market trends across vital pricing factors such as geographic area, deal size, risk segment, and product type. Banks gain access to precise market intelligence on deal flow, interest rates, and spreads, all derived from a comprehensive market practice database. Additionally, the dashboard employs a proprietary SOFR-equivalent spread measure, enabling normalized pricing comparisons and a more holistic view of pricing dynamics.
One of the tool’s standout features is its ability to prioritize upcoming loan renewals by identifying borrowers with the highest potential for revenue growth. It also benchmarks market pricing for comparably structured deals, giving banks a competitive edge in setting optimal pricing strategies.
Rick Bare, CEO and President of AFS, underscored the tool’s potential impact, saying, “Commercial loan pricing is inherently opaque. Further, loan pricing can vary significantly by product type, default risk, and a variety of other factors. Given this, the AFS Pricing Dashboard is a game-changer for commercial banks. It leverages our 50-plus years of technology experience and is supported by over $1.2 trillion of C&I and CRE loan exposure. This tool can empower banks to make better, data-driven decisions, optimize pricing strategies, and ultimately drive revenue growth in an intensely competitive market.”
By helping banks pinpoint portfolio segments falling below market expectations and quantifying their opportunity costs, the AFS Pricing Dashboard ensures that financial institutions can focus their efforts on areas with the greatest potential for revenue improvement.
The introduction of the AFS Pricing Dashboard comes at a critical time for commercial banks navigating complex market conditions. With its cutting-edge features and reliance on granular data, the tool represents a powerful ally in the pursuit of optimized loan pricing strategies and sustained financial performance.
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