Holistic and rational pricing

Nuanced return requirements & risk appetite

Optimizing profitability

Automated daily assessments

Stress testing and scenario engine

Customer potential optimization

Integrated out-of-the-box reporting

Process, control and resource optimization

Full documentation

Stronger standing with regulators


When pricing clients it is very import to do it in a holistic fashion, such that all the relevant information is included and pricing results reflect the true profitability of the client.

Often, internally build pricing models only include some of the relevant information required to perform accurate pricing and profitability assessments and is therefore systematically off.
The elaborate datamodel underlying the Clients360 application assures that all relevant information is included and accurate assessments and pricing are achieved.


By rational pricing is meant that pricing results provide interest rates, that assures the net income relative to the capital charge reach the return requirements set out by Management. When financial advisors and others price clients using the Clients360 application, it therefore provides pricing recommondations that assures Management achieve the desired profitability on bank level.


When assessing clients using the Clients360 application, pricing assures that return requirements are met and the desired profitability on customer and bank level is achieved.

The return requirements consist of two overall components: the minimum requirement and strategic adjustments. The strategic adjustments allow for client pricing to be systematically and strategically differentiated across the portfolio - subject to Management preferences and risk appetite.

The strategic adjustments can be set across many different dimensions such as: regions, branch offices, products, ratings, age groups, customer segments, sectors etc.


The motivation for applying strategic adjustments is for Management to systematically, consistently and easily be able to impose stricter (or lighter) return requirements across the client portfolio. If, for instance, the credit concentration to a certain sector is deemed too high, stricter strategic adjustments can be implemented and substantially increase the return requirements to that particular sector.

The strategic adjustments are seamlessly embedded in the pricing with no added work for advisors and other users.


Most of the income in banking arrives from interest rates and fees on loans, credits and guarantees. These rates and fees are typically set by financial advisors. So, at the basis of effective core banking is supporting financial advisors with effective decision-making analytics to assess profitability adequacy of clients and potential changes. This is a key feature of the Clients360 application.

Clients360 is a primary daily solution for financial advisors. Every time existing or potential new clients are assessed, e.g. when granting new products or renegotiating existing terms - they rely on the application. The solution typically has hundreds or more daily users in a bank.

Advisors can review the overall profitability on client and group level, as well as more granularly on individual products. The application offers high flexibility to easily apply and evaluate a wide range of potential changes with profitability consequences available instantly. This allows advisors to simulate effects from different actions to support optimal decision-making, including suggesting appropriate rates, based on comprehensive algorithmic client evaluations.

When new products or collateral are added or existing products and collateral are excluded or changed, updated capital requirements are calculated on-the-fly and the application supports both standard and internal rating-based (IRB) capital models.

The governance processes typically associated with granting and renegotiating credits, loans and guarantees can easily be incorporated, such that when advisors exceed exposure limits, approval processes can include branch office directors and senior management. In some cases, the credit department is included in the granting and renegotiation process and they can access any client assessment when needed. The flow is illustrated in the figure below.


When providing financial advisors with client profitability optimization technology, it offers a range of value-creating business benefits. Most importantly, it helps tune profitability in branch offices - via optimal client management.

Another value-creating benefit is realized from the speed by which client profitability can be performed.
Besides easily assess existing clients - potential new clients can be assessed very fast - pre-screened and rejected in case the business case is not viable. This saves a lot precious time with financial advisors and avoids redundant data.


Typically banking clients are assessed in relation with new granting or (often annual) renegotiations. Evaluating clients is an infrequent task that is highly manual and requires significant resources. This means banks often have client "black-boxes" - where the status of the vast majority of clients is not up to date.

A great feature and benefit of Clients360 is the batch process which automatically evaluates all products, clients and groups as well as aggregated effects, on a daily basis. The automated calculations and assessments yield a number of important and highly value-adding advances:

  • Automated daily assessments of profitability adequacy across all products, clients and on aggregated levels.
  • Significant shifts in client profitability is automatically detected and reported.
  • Enables a high level of client proactivity and allows for dealing with potential client issues when conditions arise and before they deteriorate.
  • The batch calculations not only calculate effects from current conditions, but also assess profitability consequences from using estimated required interest rates suggested by Clients360. Effects from single products to bank level are readily available.
  • All application data and results are readily available and can easily be fully automated and integrated in internal reporting and business intelligence or exposed in other systems.
  • Assessing all clients systematically and automated on a daily basis, not only helps internal client management – it is also an extremely powerful signal to the regulatory authorities, as well as key stakeholders.
  • Performing automated assessments frees up internal resources.


Clearly, continuous attention on all clients is a great improvement over current approaches, where clients are most often only systematically and carefully evaluated in granting and renegotiation situations. Being able to act more alertly when adverse developments appear, mitigates a lot of potential problems and potential credit losses.


While automated daily evaluations take into account existing clients and calculation settings, the stress testing and scenario engine generalize calculation assessments. It is very flexible and client information and calculation settings can be changed for whichever analysis is desired.

With the batch calculations and the ability to apply more generalized ad-hoc analyses, like changing return requirements, cost and funding structures, client ratings, PDs etc. Clients360 is an important application to staff specialists and Management. It reveals sensitivity to an array of potential business changes, which can be applied for many business and regulatory purposes.


The scenario engine can run automated in batch with the same set of stress/scenario scenarios every day, or be performed on an ad-hoc basis, when specific scenarios assessments are required.

For instance, the potential consequences of the covid-19 pandemic could have been evaluated. That scenario may have included changes in client ratings, PD and LGD levels as well collateral values across different sectors - anticipated to be impacted differently by the pandemic.


An important feature of optimizing banking includes continuously expanding the business volume with clients.

The application helps boost this expansion by making it very easy to exhibit client business potentials to financial advisors, so they can easily explore and utilize (high probability) opportunities of new business with clients.

Client potentials are typically defined and identified centrally and often based on deep analyses of client characteristics and available services from banking products.

The framework can even be used to exhibit special tasks (that are not necessarily related to potentials), but that are important to perform, for instance making sure that KYC is updated and the likes.


The application offers full out-of-the-box modern business intelligence reporting.


When implementing the Clients360 application - existing processes, that may be quite manual, can often be alleviated or completely automated. For instance, when controlling new granting or renegotiations from branch offices, all input and results are available digitally and can be accessed and controlled automatically.

Besides providing new insights and supporting better business decision-making, the application reduces resources significantly on several fronts.

Obviously, the process and control automation mentioned will reduce resource requirements. Other areas include client profitability assessments which can be performed in a matter of minutes, automated daily evaluations via batch process mean that lots of typical manual tasks in credit and controlling departments can be significantly reduced - furthermore the scenario engine allows for easy and fast ad-hoc analyses, which would otherwise require a significant workload.

The Clients360 application provides different documentation sources for client assessments.

It provides a digital audit trail, such that all client assessments are saved and can be retrieved in the application.

It allows for financial advisors and others to pdf the assessments and append them as documentation to centralized client systems if desired.


The Clients360 application provides some clear-cut regulatory advantages.

To avoid having client black-boxes and automatically being on top of profitability of all clients on a daily basis and being able to repond quickly when client deterioration initiates is a gigant leap forward and very convincing to the FSA.

Regulators are increasingly focused on financial institutions utilize sound and systematic risk/capital-based pricing with strategic return adjustments of corporate and private clients and thereby assuring that credit exposures are appropriately priced in alignment with risk appetite.

The application also provides valuable input to the internal capital adequacy assessment process (ICAAP) via the scenario engine, where scenarios are easily and comprehensively performed. This allows for precise capital adequacy assessments reportede to the FSA.

Furthermore, all client assessments and pricing is fully documented.