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Custom Loan Pricing Software
A Deep Look into Functional Capabilities
In lending software development since 2005, ScienceSoft creates robust loan pricing solutions that automate price planning, optimization, and control tasks. Explore the list of features composed by our lending IT consultants and learn the automation, AI, and security features to consider for your custom software.
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Loan Pricing Software: Key Aspects
Custom loan pricing software helps companies define the most profitable prices for their credit offerings and streamline price tracking and adjustment tasks. The software enables loan pricing strategy modeling, automated price calculation and updating across the borrower-facing platforms.
Such solutions often rely on artificial intelligence to enable advanced analytics of borrower risks and recommendations on optimal loan prices. Also, custom solutions can be seamlessly integrated with all the required systems and easily evolved with new capabilities.
- Loan types the software supports: consumer loans, commercial loans, mortgage loans, alternative loans (e.g., P2P loans).
- Main integrations: a loan management system, CRM, accounting software, borrower-facing apps (a customer portal, a lending app, third-party lending platforms), credit rating platforms of local credit bureaus (e.g., Experian, Equifax, or TransUnion for the US), etc.
- Implementation time: 9–15+ months for a custom loan pricing solution.
- Development costs: $200,000–$800,000+, depending on the software complexity. Use our free calculator to estimate the cost for your case.
Functionality of Custom Loan Pricing Software
In ScienceSoft’s lending projects, we create secure, future-ready loan pricing solutions with functionality closely bound to each lender’s unique workflow automation needs. Below, we share a list of features that form the core of a comprehensive loan pricing system.
Real-time monitoring of pricing-relevant data
To automatically aggregate data on borrower risks, demand by client segment and lending product, loan repayment history, bad debts, competitors’ prices for similar loan offerings, compliance requirements for loan pricing, and more from relevant internal and public sources.
Loan price modeling
To create loan pricing scenarios with user-defined parameters (APR, currency, repayment period, borrower credit rating, etc.), automatically evaluate risks and profitability for various price levels, and provide side-by-side comparison of scenario outcomes.
Loan price segmentation
To design custom rules for loan price segmentation, e.g., keeping an interest rate/APR and down payment for particular loan offerings and risk-based borrower segments within pre-specified thresholds to meet loan profitability targets.
Loan price optimization
To analyze price factors (including borrower risk profiles and non-conventional factors like price elasticity of demand at the individual and segment level) and get AI-based prescriptions on the optimal segmented and personalized loan prices.
Loan price calculation
To automatically calculate the due principal and interest/APR amounts, a down payment, an escrow deposit, closing-associated fees (for mortgage), etc. The solution’s pricing engine can be used to introduce loan price self-calculation options for borrowers.
Loan price data management
To establish centralized cloud-based storage for loan pricing data and easy price navigation using criteria-based filtering and metadata querying. The solution also provides end-to-end audit trail of price changing activities and enables instant detection of malicious loan price manipulations.
Loan price updating
To update loan prices across the internal systems and borrower-facing platforms. Price updating can be performed by a user-defined schedule or instantly as the loan prices change.
Profitability control
To calculate profitability levels across various loan offerings and monitor them against the pre-set targets. AI can be used to identify the root cause of profitability gaps and highlight the products that require price optimization.
Loan price reporting
To automatically generate loan price disclosure reports in compliance with region-specific legal requirements, e.g., TILA, RESPA, HDMA, and ECOA guidelines for the US, MCD standards for the EU, SAMA requirements for the KSA, and more.
