Risk-based Pricing is a consulting service that leverages Experian’s patented optimization technology to determine the ideal product pricing tiers. Pricing tier recommendations include factors such as the cost to acquire,service or close accounts. These factors help determine the ideal tier breaks and interest rates to maximize portfolio profitability and create a competitive advantage. Our risk-based pricing consulting service helps you:

• Strategically grow your portfolio while balancing risk and product profitability
• Ensure products are priced right at inception to maximize profitability and reduce future losses
• Increase competitive advantage with robust product pricing strategies
• Determine product tier recommendations for up to eight product lines
• Develop an unbiased third party strategy that meets regulatory requirements
• Gain access to unlimited consulting support from seasoned industry experts

Meet Regulatory Requirements

Risk-based Pricing provides an unbiased product pricing strategy, built based on your requirements, including factors such as cost, competition and risk tolerances. The documentation provided and on-going consulting ensures you meet regulatory requirements today and in the future.

Enhance Portfolio Profitability

Risk levels have changed drastically due to the economic environment and it is more important than ever to review pricing strategies often and make adjustments for shifts in consumer populations to reduce risk and retain profitability

Instantly Modify Pricing Tiers as Market Conditions Change

For clients wanting added visibility to the pricing strategy, Experian offers an interactive scenario capability that enables clients to access the pricing model via a secure hosted environment. Within the application, a client can adjust the constraints used to develop the pricing model and immediately quantify the impact pricing strategy changes have on profitability and other financial metrics.

Understand Risk by Product

The Risk-based Pricing recommendation includes reports by product and tier rate that help you understand the components driving profitability, providing useful information to develop marketing strategies.

Increase booking rates

Strategically grow your portfolio by offering credit to a broader spectrum of customers, while providing the best possible account terms.