Incentives Based on ROE - Notification

Overview

The Incentives Based on ROE Skill allows Andi® to provide potential incentive earnings information for selected loan products with the ability to specify up to four tiers of incentive earnings. The configurable tiers are based on the loan's ROE relative to the loan product’s target ROE. Incentive earnings can be configured by product, tier structure, and payout source (percentage of loan amount or net income).

Note

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

 

In This Article

 

Configuring and Testing the Skill

Before enabling the skill for the targeted audience, 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 Development audience:

  • Select Development under the Audiences section.
  • In the Version dropdown menu, select the version of the skill that you want to test. This will display the skill configurations.
  • In the General Configuration section on the skill details page, enter the following information to configure the skill:
General Configuration
  • Header Message – (Optional) All incentives messaging will appear below this custom header in the Andi Window. If it is omitted, it will appear under the Here are things to consider heading.
  • No Payout Message – Message to be displayed if the current loan ROE is below the first tier of incentives.
  • Payout Message – One of the messages to be displayed once the loan ROE reaches or exceeds any of the incentive tiers.
  • At least one product group must be configured, but you have the option to configure more than one. In the Product Group 1 section on the skill details page, enter the following information to configure the skill:
Product Group 1
  • Select Product(s) – If you want to apply the same tier and payout structure to all loan products, leave this field blank. Otherwise, select the products that should utilize the tiers specified for this group.
  • Payout Calculation Source – The payout amount is the tier payout multiplied by the value identified in this dropdown menu (either loan amount or net income). If left blank, Andi will use net income.
  • First Incentive Tier (bps) – Enter the number of basis points above (or below) the product target ROE to specify when incentives begin. For example, if incentives begin when the loan ROE is 100 basis points above the target ROE, enter 100.
  • First Incentive Tier Payout (bps) – Enter the number of basis points that should be multiplied against the Payout Calculation Source to calculate the incentive amount currently being earned. 
  • First Incentive Tier Message - Message to be displayed if the current loan ROE is above the target ROE by more than the number of basis points specified in the First Incentive Tier (bps) field.
  • Second Incentive Tier (bps) – (Optional) Enter the number of basis points above (or below) the product target ROE to specify when the second level of incentives begin. This value must be greater than the value specified in First Incentive Tier (bps).
  • Second Incentive Tier Payout (bps) – (Optional) Enter the number of basis points that should be multiplied against the Payout Calculation Source to calculate the incentive amount currently being earned. 
  • Second Incentive Tier Message – (Optional) Message to be displayed if the current loan ROE is above the target ROE by more than the number of basis points specified in the Second Incentive Tier (bps) field.
  • Third Incentive Tier (bps) – (Optional) Enter the number of basis points above (or below) the product target ROE to specify when the third level of incentives begin. This value must be greater than the value specified in Second Incentive Tier (bps).
  • Third Incentive Tier Payout (bps) – (Optional) Enter the number of basis points that should be multiplied against the Payout Calculation Source to calculate the incentive amount currently being earned.
  • Third Incentive Tier Message – (Optional) Message to be displayed if the current loan ROE is above the target ROE by more than the number of basis points specified in the Third Incentive Tier (bps) field.
  • Fourth Incentive Tier (bps) – (Optional) Enter the number of basis points above (or below) the product target ROE to specify when the fourth and final level of incentives begin. This value must be greater than the value specified in Third Incentive Tier (bps).
  • Fourth Incentive Tier Payout (bps) – (Optional) Enter the number of basis points that should be multiplied against the Payout Calculation Source to calculate the incentive amount currently being earned. 
  • Fourth Incentive Tier Message – (Optional) Message to be displayed if the current loan ROE is above the target ROE by more than the number of basis points specified in the Fourth Incentive Tier (bps) field.

Select Enable Changes to enable the skill for the Development audience. Once you've enabled this skill for testing, make sure you've added the users who will be testing the skill to the Development audience.

Viewing the Skill in PrecisionLender

As soon as a loan is added to an opportunity, the Andi skill will run and the incentive messaging will appear under the customized Header Message section (or under the Here are things to consider section if no customized version exists).

 

Enabling the Skill

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

  • Navigate back to the skill details page for the skill you were testing.
  • In the Audiences section, select the targeted audience for this skill and choose the version of the skill you're enabling. When the latest skill version is published by the skill owner, it will automatically be available for selection in the list.
  • Open the configuration and select Copy Config From… to copy all of your configuration settings from the Development audience.
  • Select Enable Changes to enable the skill for the targeted audience.

Note

After enabling the skill for the targeted audience, we recommend disabling it for the Development audience.

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