Knowledge Check
Can the Pricing & Profitability information be pulled into Credit Memos or Customer Term Sheets?
CPP is an on-platform pricing & profitability field where all of the information you see can be pulled into nCino Credit Memo, Document Generation, and dynamic SF reporting & dashboards.
What does RAROC stand for?
Risk Adjusted Return on Capital
What are the two pricing experiences we offer at nCino?
Negotiative (indicative) pricing, rate sheet pricing
Multi Lingual?
Multi Currency?
Yes
No
How many inputs are in the calculation engine?
60+
What Index Rate options do you provide with CPP?
For Pricing Indices used for variable rate products, the FI would add a Rate table load with their existing nightly core sync. This is the nCino gold standard that allows FIs to keep using their existing Pricing Indices and sources
Why did we select RAROC as our northstar metric?
How do you do deal pricing?
Commercial Pricing and Profitability is pricing commercial loans at the product level, and the ancillary income at the aggregate level.
BA Skills?
Yes, Calculation Explanations
What technology does the actual calculation?
AWS. Salesforce does a lot of things well. One of those things that it doesn't do well is more of that heavy computational lift that's required for any sort of modeling, let alone pricing and profitability. So we send, there's no PII (personally identifiable information) data that's transferred, it's really just a loan identifier and then all of the numbers needed to do some of that number crunching, and then it's sent back. None of the users or anyone even on this call would have access to AWS. We don't even have access to AWS and cant get into it. It's literally just a multi -tenant that's anonymized and purely for your FI only.
What are the funding curve options?
For Funding Curve Assumptions, nCino has standard Automated Funding Curves available including FHLB Dallas, FHLB Des Moines, FHLB Chicago, FHLB Boston, FHLB Averages, Prime, Treasury, and Fed Funds Rates. FIs can also integrate their own internal cost of funds, and an additional Liquidity Premium can also be configured based on any desired parameters
What profitability views do we offer on platform?
Can you price swaps?
We can account for swaps for how we would account for our ancillary income as more of a proforma impact, but we can’t necessarily price a swap and add it to the loan to de-risk the loan in that way, but we can certainly account for it just as we would with other ancillary products that may be a part of the deal package. With any ancillary product we can make sure we have the appropriate inputs to ensure it is being counted appropriately for the proforma impact to profitability of that product or service.
Mobile enabled?
Yes, via web browser, so not on a traditional app, but if you are able to get on an iPad and able to pull up salesforce and nCino you will be able to access this. You can access it on a phone, all you need is a web browser, but you are essentially condensing a huge screen on a smaller one so just something to consider.
What roles are updating the calculation engine inputs?
Pricing admin (usually a combo of the tech admin/finance/treasury team)
How does nCino handle nuance in risk and funding calculations given some of our complex lending products or structures?
The short version is that the on-platform nature of CPP ensure any data point on the platform has the ability to influence any income, expense, risk, or capital parameter used in calculations
What is included in Relationship RAROC?
BOOKED products
How flexible is the system if we want to attach different rate sheets to different markets/ geographies can we do that?
We are flexible, the product selection that we make will point to the appropriate matrix and then it would be dimensions like geography that can get more specific as far as the rates we will offer/include in the rate sheet.
Do they have to be a deposits/treasury customer of nCino to pull that data in?
No, this data we pull will be the booked deposits and treasury from their core.
Would we be able to, in an exam situation, go back and pull everything, what the calculations, what the metrics were used to get to whatever profitability that led us to the decisions to prove or not approve?
Yes, through the internal audit log that is available to your users with pricing admin permission. That can be exported to a CSV if you want to view outside of the platform.
Does CPP provide us any intelligence or benchmarking capabilities? What benefits do we get from having pricing data on the nCino Platform?
When we look at profitability, what is the profitability projection that relationship RAROC is returning? Is it life of relationship profitability? Include answer for loans, and also ancillary income.
Life of Loan Profitability. For any of the ancillary services, deposits and treasury to name a few, if it is existing business we are bringing that in from the core or data lake wherever it is housed today, we are going to calculate profitability based on the parameters that were being collected on those specific products and services. Then we price what additional we may be getting, whether it is deposits, treasury, or any additional income, and how it is that going impact not only this deal but also the broader relationship, household and portfolio level profitability views.
Can the deposit revenue be broken down into the different components of deposit pricing like service charges verses NSF, verses debit cards?
Are we API enabled?
Yes
How often do you validate your model?
Our calculation engine is going to be based on your inputs, unless it's something that we're using like an external data source from, so you can update those essentially think of it as like we have the framework and then we're using your data to drive those profitability calculations and profitability returns. So, and any of those inputs can be updated on whatever cadence. So if you have something that needs to be updated and looked at annually you can do that, if there's something you really never need to touched after initial setup, like tax rate, then you can do that as well.