PrecisionLender Overview

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First Business Financial
Services | PrecisionLender
Partnership
PrecisionLender Overview
July 3, 2018

2. Who are we?
We design and deliver solutions that help
banks manage pricing, understand
relationship profitability and construct
better credit portfolios.
We do this by helping commercial relationship
managers:
• Win better deals by quickly hand-
crafting solutions that meet their
clients’ needs and bank objectives
• Create stronger, more profitable client
relationships through trust and added
value, delivered through a
constructive sales interaction
• Build a more valuable brand for
themselves and the bank

3. • Founded in May 2009
• Implemented in 200+ banks
• Serving clients ranging in asset
size from less than $1B to over
$1T
• In implementation with a global
bank across 6 countries
• Currently pricing commercial
transactions at a run-rate of more
than $1 trillion per year
• This is doubling every 6-12
months
Who do we serve?

4. The brain of the bank… and how PrecisionLender fits
inKey technologies drive quantitative and qualitative benefits across the lifecycle of a
deal.
Description
Example
Technologies
Targeted
Benefits
1. New
Business
Development
2. Deal
Structuring &
Pricing
3.
Underwriting
& Onboarding
4. Ongoing
Portfolio Mgt
Drive new business, both
new-to-new (prospecting)
and new-to-existing (cross
sell, relationship
expansion)
Drive revenue with eye on
broader customer
relationship, ensure
profitability of new
business/supports strategy
Document and validate
new deals and renewals,
onboard new clients onto
bank platforms
Maintain healthy credit
portfolio, help continue to
define and refine risk
appetite of the future
Enterprise-wide
platform: improve sales
efficiency, sales
enablement, sales
management and
associated mgt routines
Empower RMs to better
serve clients, deliver
revenue growth (spreads,
fees, cross sell, deposits);
gauge pro forma returns;
improve win rate
Underwriting efficiency
improvement, reduce
speed-to-market,
enable straight-through
processing for customer
onboarding
Reduction in loan
losses, potential
revenue driver
(buy/sell, blind
participations,
securitizations, etc.)
Deal Process Flow
Because PrecisionLender drives profitable revenue, implementation is straightforward, the user interface remains consistent regardless of
how it’s accessed, and makes other “brain” systems better, banks have found the most value implementing PrecisionLender early in any 4

5. What does the Relationship Manager use?
• We constantly and immediately give RMs
options on how they can improve a deal.
• PrecisionLender is a sales tool…it’s a
negotiation tool.
• It allows the RM to easily focus on what
is most important to the borrower.
• It is like having a senior RM or pricing
analyst helping you structure the deal in
real time.
• This helps lenders win better deals, build
stronger relationships and build a better
brand for the commercial bank.

6. What does the Relationship Manager use?
• Easily understand overall Relationship
Profitability.
• Understand the impact on the
relationship and the portfolio both if we
win and if we lose this next opportunity.
• Understand the impact on Net Funding
and Net Commitment as a result of
winning a losing.
• Answer the basic and important
question: if we win what is in our
pipeline, how much will we grow the
bank?
• Better manage liquidity needs and
improve investment portfolio returns

7. Meet Andi
• Andi® is PrecisionLender’s virtual pricing analyst,
powered by AI and machine learning.
• Andi sees every deal priced by PrecisionLender
clients. She learns what’s working and what’s not, as
well as the pricing tactics of the best RMs.
• She works with RMs as they price each opportunity,
showing them how to make deals work,
recommending structures, and even highlighting
opportunities to expand a relationship.
• Andi’s learning how to monitor RM portfolios to find
new opportunities and detect anomalies. She’s even
learning how to track the competition’s offers and
ways they’ve been beaten in the past.

8. How is this valuable to banks?

9. How is this valuable to banks?
• To the prospective client, the Relationship Manager (and the bank) feel smarter, more
flexible, more capable and responsive
• Every RM hates to be the used car salesman and say “let me go ask my manager.” It damages their ability to win that
deal and it damages their ability to build a lasting relationship.
• If there is a deal that will work for this client at this bank, the RM has complete
confidence that this system (PrecisionLender) will help them to find it…and do so in a
constructive and value-added way.
• If a mutually acceptable deal is not possible, the RM (and the bank) can say NO with confidence earlier in the pipeline
before expending substantial resources and putting the bank’s brand at risk.
• At many banks, up to 50% of the deals that go into origination never make it onto the books because they were either
unacceptable to the borrower or to the bank at the outset. Better qualification drives Improved efficiency and
minimizes the damage to the brand from a failed or a “re-traded late” deal.
• Understand where your competition is pricing along with where you are winning and
where you are losing...and why. Have confidence in your pricing targets and grow
where the best returns are available.