Other Products, which represent a grouping of fee-based products, allow you to create product types within PrecisionLender to capture fee-based business available to win. These can be products like Treasury or Cash Management Services, Merchant, Credit Card, Wealth Management, Trust, or Other Servicing fees including Fees, Services, and Safe Deposit Box.
When a lender is pricing a new opportunity, they will enter the estimated annual fees associated with the account type in the “Other Products” section of the Opportunity pricing screen. These estimated annual fee amounts will need to be established by the bank and communicated to lenders based on average expectations for that product type.
In this Article
The Other Product Edit Screen
- The "Edit" button will allow you to change the settings of the product.
- After you click the "Edit" button, the "Save" button is how you save any changes you have made to the product.
- If you leave the screen without saving, any changes you have made since the last save will be lost.
- The "Print" button allows you to print off the settings of this product.
- The "Print" button is not visible while editing.
- The "Close" button will leave the product and take you back to the Administration Section.
- Make sure that you save your work before closing if you would like to keep the changes you have made.
- The name at the top of the header will be the name of the product and how it is referenced throughout PrecisionLender.
- This can be edited to match the name of the product at the financial institution.
The tabs below the header represent different regions or groups of regions that have different assumption sets for the product.
Product Configurations & Defaults
- Product Enabled
- Signifies whether a product is visible and active in the product list view-able to users.
- Products created in order to map Relationship Awareness accounts that aren’t active accounts in use by the financial institution can be unchecked.
- Other Fee Type
- Clicking this field opens a drop down box allowing you to set a different product type.
- Operational and Market Risk Capital Allocation
- Only applies to Annual Revenue and Balance type.
- Capital, or Equity allocated, expressed as a percentage of average balance and/or a percentage of gross revenue for the product.
- When a user is inputting the Other Account type within Opportunity Pricing, the user will have to specify the expected balance of the account in order for Capital Allocation to be calculated.
- If no balance is specified, or the Other Account Type is not a type that would carry a balance, then no Capital Allocation amount will be calculated.
- Provided a Capital Allocation amount is calculated, this amount becomes the denominator in the profitability calculation for your return.
- Target Return
- Return profitability target for this product.
- Will only apply to products that have an expected balance associated with them.
- Expected Revenue Probability
- Only applies to Expected One Time Revenue.
- Allows you to specify the probability you will receive this revenue.
- Servicing Costs
- Not visible for Activity Based Fees.
- Allows you to set a percentage of the annual revenue or an annual fixed dollar amount as a servicing cost.
- Split Out Region
- Allows you to choose regions to separate from this group of regions so they can have separate assumptions.
- Collapse Into Region
- Allows you to collapse this group of regions into another group of regions that you select.
- Applies to Activity Based products.
- Clicking "Add Activity Type" allows you to add separate line items for fees to be incurred by the customer each time they use the product.
- This will be the name of the Activity.
- Default Unit Price
- The unit price that will be added initially for new activities.
- This should be the standard charge to the client each time this activity is performed.
- The cost per unit, each time this activity is performed.
- The cost as a percentage of the revenue earned.
- Clicking on "History" allows you to see a list of dates and times when changes were made to the product.
- By clicking on a date and time, you can see the setting of the product that was saved at that date and time.