In this episode, we'll be talking about what we're learning from looking at the data from the $11 billion dollars in loans and deposits that go through the PrecisionLender system each month.  What do the numbers tell us?  What intuitive conclusions were wrong, and which were dead on?  To help answer those questions, I'm joined today by Laura Jackson. Laura is the PrecisionLender Data Scientist in residence and has been charged with the very broad task of figuring out what the data is trying to say.

One of the overwhelming trends in banking that lenders have had to deal with over the last several years is the mass exodus away from variable rate financing.

With rates at generational lows across the globe, any borrower worth his salt is asking for (and getting) long term, fixed rate deals.

In order to compete, lenders have had to stretch beyond the typical comfort zone at many banks.  With that stretch comes the next obvious question.  How the heck do we hedge some of this risk so that we can keep booking deals without putting our balance sheet in a really ugly position?

Because PrecisionLender watches about $10 billion in loans and deposits flow through our pricing solution, we get to see a lot of great things.

Starting today, we want to start sharing some of that aggregated data with you and what it means.

Relationship pricing is one of those terms that almost every bank we talk to throws around a lot. When John Tull says it, he means how they holistically evaluate customer relationships. They look at both the opportunities that is in front of them in terms of a potential opportunity as well as the existing relationship that have with a customer currently at the bank.