Wed, Jul 26, 2017
The MD|DC Credit Union Association (MD|DC CUA) has formed a new stategic partnership with Informa Research Services and presents a breakthrough innovation for credit unions - PriceWise™ - designed to accelerate growth and competitiveness in local markets.
PriceWise is a powerful “point and click” pricing application that will enable credit unions to view comparative pricing against selected competitors to make more informed and efficient pricing decisions in a group setting. As an ALCO tool, it will help credit unions with loan and deposit pricing and modeling, incorporating risk based models and instantly calculating ROA per product.
PriceWise will allow Asset and Liability Committees, CFOs, marketing staff, lending professionals and other key credit union personnel to adjust to market conditions quickly, price offerings more competitively and vastly improve operating efficiency and earnings for the credit union.
PriceWise™ was engineered in collaboration with experts at MD|DC credit unions to meet the practical needs of small work groups that manage loans, deposit products and services for members. The interface guides a user through an intelligent, step-by-step menu to design products with competitive features and prices. To serve more members, MD|DC credit unions required risk-based pricing tools to simulate the impact of changes in origination and servicing costs, loss provision, prepayment and liability funding. Users can test A|B scenarios against ROA hurdle rates, investment yield curves and competitive market position during an ALCO or informal team meeting in real time. PriceWise™ was designed as a structured workflow based on specifications from top credit union executives.
Users of PriceWise™ shared their first-hand experiences with MD|DC CUA: “Informa’s tool provides more pricing insight, more efficiently, than we’ve ever been able to achieve before,” said Theresa Mann, CEO, The Partnership Federal Credit Union. John Bratsakis, CEO of the MD|DC Credit Union Association, says “PriceWise will help MD|DC credit unions gain market share against larger competitors. It’s about time credit unions use the data and tools that larger competitors use against us.”
Informa SVP Paul Needels, says “This organic, collaborative approach to innovation with MD|DC credit unions was the secret sauce to innovation. PriceWise™ happened because a team of smart people rolled up their sleeves, parked their egos at the door and solved some very hard problems together.”