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The Relationship Associations Tab

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In PrecisionLender, a Relationship contains the full picture of a customer relationship for the purposes of pricing and profitability management. Within each relationship page, there is a Pricing Tab and an Associations tab. The Associations Tab allows you to capture and manage associations between Relationships in PrecisionLender.  These sorts of relationships are rarely tracked within a core system, but they are often important to lenders responsible for managing these relationships.

 

Sections

 

Why is the Associations Tab Important? 

Screenshot of Relationship Grid's Association Tab

The Associations tab shows every loan that this person has guaranteed, and every deposit account on which they are a Signer or Co-Signer.  Note that these loans and their values are not included in this relationship’s overall value on the Pricing screen, but they are still meaningful to the conversation.  

There are 2 levels to this discussion:  

  1. The value of this person’s business
  2. The influence that this person has over other businesses

 

A relationship’s value may not be significant, but their influence may be extremely strong.  A relationship with a low net income may still be considered a high value customer because they facilitate other Relationships. These sorts of relationships are rarely tracked within a core system, but the Associations tab provides a place to display the value of the associations between existing Relationships.

 

 

What is in the Associations Tab?

There are two types of associations in The Associations Tab:

  • Loan Associations: Loans belonging to other Relationships in which this Relationship is invested (e.g. acting as a Guarantor) 
  • Deposit Associations: Deposits belonging to other Relationships in which this Relationship is invested (e.g. acting as a Signer or Co-Signer)

 

 

What Each Category Shows

Account

  • Masked core ID for this account.

Relationship Name

  • Name of the relationship that is guaranteeing (for loan accounts) or co-signing (for deposit accounts)

Association Type

  • Type of association between this relationship and account.
    • Guarantors for loan accounts
    • Signers and Co-Signers for deposit accounts

Status

  • Status of this account

Risk Rating

  • Risk Rating associated with this account.
  • This value is imported from your core system.

Product

  • Product type of this account as imported from your core system.

Current Balance

  • Balance of this account at the time the data was last pulled from your core system.

Current Rate

  • Current interest rate for this account.
  • This value is imported from your core system.

Strategic Net Income

  • Annualized Net Income using today's funding curve.
  • This is the Net Income if the account were to reprice it today.
  • This is useful to see how valuable this account would be to competitors.

Strategic ROE

  • ROE using today's funding curve.
  • This is the ROE if the account were to reprice it today.
  • This is useful to see how valuable this account would be to competitors.

Last Updated

  •  Date this information was last updated 

 

 

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