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?
- What is in the Associations Tab?
- What Each Category Shows
- Related Articles
Why is the Associations Tab Important?
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:
- The value of this person’s business
- 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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