Suggest ROE Increase Using Maturity

Overview

For loans that meet or exceed the loan's target return and have a maturity greater than 12 months, Andi® will recommend adjusting the maturity to increase the loan's ROE. The percent increase to the loan's ROE (X%) will be configured in the skill settings and used to calculate the maturity adjustment. The message displayed to the Relationship Manager is: Increase/Decrease Maturity to Y months to increase the ROE to about Z% (Current ROE * X%). If the Relationship Manager chooses to adjust the maturity, Andi® will continue offering recommendations for maturity adjustments until a minimum of 12 months is reached.

This article will cover configuring and testing the skill, and viewing and enabling it in PrecisionLender.

Note: You must configure this skill in the skills manager prior to using it in PrecisionLender. 

 

In This Article

 

Configuring and Testing the Skill

suggest_roe_using_maturity.png

Prior to enabling the skill for Everyone, you first need to ensure that the skill is working properly by testing it. To do this, navigate to the skill details page to configure and enable the skill for your Testing audience:

  • Select Testing under the Audiences section.
  • In the Version drop down, select a version of the skill that you would like to test.
  • In the Skill Configs section on the skill details page, you can enter an amount in the following field:
    • Desired ROE Increase - Enter an amount in this field to indicate how much the ROE should be increased by in bps. If needed, you can use a decimal point. You can also use the percentage sign, but this is optional.
  • Select Save to enable the skill for the Testing audience. Once you've enabled this skill for testing, make sure you've added the users who will be testing the skill to the Testing audience.

 

Viewing the Skill in PrecisionLender

Shows the skill message in Andi

If the maturity of the loan you're pricing exceeds the target return, Andi® will display the following message: 'Reduce Maturity to X months to increase the ROE by X%'. This is the number that you've configured in the skills manager.

You can apply the suggestion Andi® has given by clicking on the message. This will update the applicable fields for you.

Note: Always remember to save the opportunity to apply your changes.

 

Enabling the Skill for Everyone

After you've viewed and tested the skill, you are ready to enable the skill for Everyone.

  • Navigate back to the skill details page for the skill you were testing.
  • In the Audiences section, select the Everyone audience and choose the version of the skill you're enabling. When the latest skill version is published by the skill owner, this will automatically be available for selection in the list.
  • Re-enter the skill configurations.
  • Select Save to enable the skill for everyone.

Note: After enabling the skill for everyone, we recommend disabling it for the Testing audience. 

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