Lending Excellence: Unlocking growth for retail banking

The current retail lending landscape

The global lending landscape is undergoing a dynamic transformation driven by various factors.

Economic challenges in certain regions are fostering a sense of caution, affecting both consumer and business spending. Inflation continues to be a significant concern, leading to higher interest rates, which in turn impact the cost of funds.

New players entering the lending market are adding more complexity to this changing environment. The entrants in financial technology often employ innovative models that focus on digitalization and user-friendly experiences. Regulatory frameworks are evolving to keep pace with these advancements, ensuring a fair and secure lending environment.  

While lending volumes may fluctuate based on economic conditions, one thing remains constant: the pressure on margins due to heightened competition and ever-evolving borrower expectations. Three key factors can empower decision-makers to successfully manage lending businesses globally. 

Three key factors can empower decision-makers to successfully manage lending businesses globally.

Price optimization based on customer segments

Understanding how price elasticity differs across customer segments to maximize profitability and competitiveness. 

Innovative product offerings and value-perception

Customizing lending products for customers and promoting their unique value propositions. 

Streamlined digital distribution channels

Enhancing the customer journey and conversion rates across distribution channels for a seamless borrower experience. 

Ready to optimize your strategy, pricing, product offerings, and distribution in this dynamic lending landscape? Discover valuable insights and case study lessons from our industry experts in this series of articles and our brochure.  

Our approach to lending pricing

Enhance your profit margins using our best-in-class mortgage pricing solution, which enables you to analyze portfolio performance, perform what-if analyses, and optimize pricing with precision.

Leverage the power of smart data analytics to make informed pricing decisions and drive financial success. 

Our approach spans from application models to renewal volume models, encompassing all areas of the mortgage portfolio. By analyzing customer behavior and identifying their underlying elasticities for scientific mortgage rate management, we develop a comprehensive approach to safeguard your profit model against future uncertainties. 

Access Lending Portfolio Health

Evaluate applications and new business activities with a particular focus on the volume of new business, interest rates, price enforcement, discounts, and overall lending portfolio performance. 

What-if-scenario

Visualize the implications of changing one (or multiple) product’s rate on the full portfolio, including cannibalization of other products. Our portfolio optimization software allows you to forecast how new business volume and margins develop with a certain price scenario. 

Price optimization

With a business goal in sight, our pricing solution can calculate an optimized pricing grid under set constraints. Visualize portfolio forecasts on optimized pricing grid across different scenarios. 

Learn how to optimize bank deposit strategies for growth, margins and liquidity

Our industry experts

Christoph Stegmeier
Senior Partner
Munich, Germany
Partner
Hamburg, Germany
Rohan Shah
Partner
New York, USA
Partner
Zurich, Switzerland
Director
Munich, Germany
Partner
London, UK

Find out more

Given current market volatility and shifting economic climate, banks need to act fast to protect their profitable growth. At Simon Kucher, we will help you optimize your strategy, pricing, product offerings, and distribution in this dynamic lending landscape. With our industry experts and hands-on approach, we will help your business achieve sustainable growth in today’s challenging market.