Hoosier Heartland State Bank
“ProfitMagnifier helps me efficiently manage my day. It helps me find my most profitable customers, shows me how to make them more profitable, and helps me put together profitable deals for prospects.
I want to get away from the fixation on rate on one account, rather I want to price based on the value of the whole relationship. A prospect will typically want to price one deal with a low rate for one account. Instead, I look at their financial statements then use ProfitMagnifier to line up the call and can see how profitable they will be if I can move 50% of their portfolio to our bank. Because I am looking at the entire relationship, I am able to provide the prospect additional value and premium pricing. Premium pricing is appealing to prospects because of the value you provide them, not because you have the lowest price on the block. It’s extremely beneficial to go to our CFO with the entire package of accounts, not just one account priced low with the promise of more business in the future.
For instance, I am working on a deal now where I’m going up against a competitor’s lower rate on one loan. ProfitMagnifier shows me how to generate more value for the prospect by pricing the entire relationship. Even though the loan may cost the prospect an additional 50 basis points, I believe I will gain their business.
I also use ProfitMagnifier to help support an interest rate on a loan by getting more deposits. For example, I saw that a customer had a $250,000 deposit at a competitor’s bank. I added this deposit to the customer’s portfolio in ProfitMagnifier and could see how it helped the relationship become more profitable. I shared with the customer that if he brought this deposit over to the bank, it would help the whole relationship. The customer wrote a check for $250,000 and opened a checking account that day. I didn’t even need to cut the rate on the relationship!
ProfitMagnifier is a must-have for any lender who wants to get premium pricing on their loans!”
Trent Smaltz: Vice President, Chief Lending Officer