In the wake of the 2008 financial crisis, it became apparent that
pricing loans in a way that is profitable for lenders and sensitive to
risk is anything but simple. Increasingly, lenders are following the
lead of other retailers by segmenting their market and more precisely
targeting customers. To do this successfully, lenders must engage
analytic approaches, such as machine learning and optimization, in
setting prices for each segment.
Robert L. Phillips worked with major banks and financial services
companies for more than a decade to help them improve their pricing
capabilities. This book draws on his experience, as well as the latest
academic research, to demonstrate how lenders can apply the proven
techniques of price optimization to responsibly improve the
profitability of their loans. It is a go-to resource for academics and
professionals alike, particularly lenders who are looking for ways to do
better business in an increasingly competitive (and regulated) market.