New Pricing Model

Client Need:  A leading provider in indirect Automobile financing needed a more efficient model to replace their paper-intensive, Excel-based pricing mechanism used for the development and distribution of pricing sheets.  The manual pricing process had to be replicated for each pricing territory.  Additionally, the model provided only guidance in setting prices using competitive information.

Solution:  BenchMark developed business requirements for the development of an Access-based pricing model that would automate the production and distribution of the pricing worksheets.  Additionally, the new model provided guidance to the client rate-setting team in terms of expected Gross and Net Interest Margin and risk-adjusted Return on Assets.

Results:  The new model facilitated rate-setting to achieve the client’s financial targets.  Additionally, the model and new process cut the weekly resources required to set new rates in half.