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CLIIR

Individual pricing models based on elasticity curves assess how the probability of purchasing a credit product changes at different levels of the offered interest rate. They build a relationship between the customer's price sensitivity and his propensity to accept the offer. Based on these curves, a credit institution can determine the optimal interest rate for each customer: one that maximizes the expected profit, taking into account both the risk and the probability that the customer will actually take the loan.

Key benefits:

  • Optimization of revenues by accurately assessing the most profitable interest rate for each customer
  • Higher conversion of credit offers, since the price is tailored to individual elasticity
  • Reduction of the risk of refusals and loss of customers due to inappropriate pricing conditions
  • More effective management of product strategies based on behavioral reaction to price
  • Increased competitiveness through personalized credit offers

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