Intelligent Pricing for Better Banks

Executive Brief

A Winning Promotional Pricing Strategy Is More than Lowering Rates


Many, banks use promotional pricing to increase originations and combat portfolio run-off caused by end of draw, refinancing, and competition from alternative lenders. However, they come at a cost, especially in a low-rate environment.

This executive brief provides a checklist for how banks can ensure they design promotions that create the most value for the bank and the customer:

  1. How can you target the right promotional offer to the right customers through the right channel?
  2. How can you design a promotion that incentivizes the behavior you want (and doesn’t unintentionally create the ones you don’t)?
  3. How can you ensure a promotion is a clear win-win, meeting both customer needs and creating value for the bank?