Dynamic Pricing
How can you set the right price to attract enough clients to offset lower margins? And is raising prices worth it if loan demand decreases?
Dynamic pricing empowers smarter, data-driven decisions through advanced analytics and automation. It continuously optimizes prices based on customer profiles, timing, and market conditions to determine the most profitable pricing strategies.
Dynamic Pricing analyzes each customer’s unique situation—their behavior, risk profile, and price sensitivity—to determine the optimal offer in real-time. Instead of having to choose between volume and margin, you get both.
The model proposes a price optimised to the bank’s business goal.
The results speak for themselves: Amplifi Capital achieved a 30% increase in offer acceptance rates. Equa Bank’s implementation delivered added business value for 70% of its client base.
Your creditworthy clients who prioritize fast service and convenience receive offers that reflect their preferences. Your price-sensitive prospects receive competitive offers that still meet your risk parameters. Every customer gets pricing that makes sense for their situation, and you maximize the value of every interaction.
How Dynamic Pricing Works
- Context Analysis: Machine learning identifies the customer’s decision-making phase by tracking dozens of behavioral factors.
- Price Sensitivity Model: Assesses the likelihood of offer acceptance and predicts customer responses to various price points.
- Offer Optimization: Proposes pricing that prioritizes your business goals—maximizing NPV, approval rates, or both.
The entire process is fully automated and occurs within milliseconds for real-time online and mobile use.
Key Benefits
- Higher Revenue: Precise pricing maximizes customer value potential while maintaining acceptable risk levels across all segments.
- Improved Customer Experience: Offers match customer expectations in pricing, timing, and format, strengthening trust and loyalty.
- Automation and Efficiency: Fully automated system continuously adapts to market changes through machine learning.
- Flexible Implementation: Close collaboration during deployment ensures the system adapts to your evolving business requirements.
- Seamless Integration: Plugs directly into existing loan systems, mobile apps, and web portals without operational disruption.
Success Stories
Trusted by TOP Enterprises
Featured Stories
Request a demo
Contact our Head of Data Science, Dominik Matula, and try our Dynamic Pricing solution free of charge.
Please provide your details
Asterisk (*) indicates required fields.