Sean Johnson

If you are facing with a choice of building vs purchasing an off-the-shelf pricing analytics software, this blog post will help you understand the pros and cons of both and present them to your management and IT teams.

During the recent Q4 2023 earnings season, major lenders faced questions and challenges related to reduced NII (Net Interest Income). Lenders are feeling the pressure of increased borrowing costs, leading to less-than-desired profits. To top it all off, many indications are predicting that interest rates are likely to continue to fluctuate in the new year. 

What does it mean to have a proactive, optimal pricing strategy? The first, and most simple answer, is the ability to understand how the market will react to changes in price – how this will affect auto loan volumes – and then identify the ideal price across all cells. In order to be proactive, it is imperative that you are able to accurately model and forecast how various changes in rates will impact a customer’s probability of closing a loan.