CostPro™
Loan Pricing Model
Credit unions have seen 25 to 96 basis point increases by using theCostPro™ Pricing Model.
The CostPro™ Pricing Model from Thompson Consulting & Training maximizes profits from every loan funded by your Credit Union by using is an innovative combination of Activity Based Costing and Risk Based Pricing. By identifying all costs, both fixed and variable, associated with each grade of loan, the CostPro™ program allows credit unions to be more competitive with their rates. This, in turn, generates more high quality loans.
The CostPro™ pricing model helps credit unions increase the ROA on their loan portfolios by:
- Putting the CEO in charge of rates and yields
- Eliminating subsidies between loan grades
- Ensuring that all loans are priced consistent with the risk associated
- Providing more competitive rates for A+ Loans
All credit unions that have implemented the CostPro™ program have seen significant increases in the average margins generated from their loan portfolios.
CostPro Loan Pricing Worksheet Sample
Margin Management Tool Sample
Randy:
I would like to thank you for what a wonderful job you did at strategic planning this year. I cannot tell you what a difference I have seen in my board. They are so ready to move forward and work together. Last nights board meeting was very encouraging to me. I can see great change in all of us and I know that it can only get better with your ongoing support.
Sincerely,
Valorie G. Snyder
President/CEO
Sacramento Dist. Postal Employees C.U.
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