In current environment bank profitability is under heavy pressure, especially in Europe. Negative interest rates, flat interest curve, heavy investment needed for digitalization, competition from Fintech… this is leading bank profitability to historically low levels, and valuations are also suffering since several years. In this context, ensuring adequate pricing of products is a key challenge to be able to:
• Sustain profitability at an adequate level • Attract most profitable client through tailored offer • Avoid race to nominal profit growth at the expense of long term profitability
Developing an adequate Risk Based Pricing practice can be a key advantage. It is a challenge given it lies at the intersection of several skills, namely commercial, financial and risk expertise’s. Pricing a credit goes far beyond comparing a credit spread to the capital consumed, and this course is designed to dig deeper into this hot topic.