Summary of "Moneyball" in Commercial Lending

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

9 Innovation

8 Style


Recommendation

Fields as disparate as advertising, law enforcement and sports now rely on analytics to make decisions and set prices. Yet commercial lending remains an exception. According to Boston Consulting Group professionals Deepak Goyal, Sumitra Karthikeyan, Vikrant Kulkarni, Victor Noguera and Ian Wachters, a new analytics methodology could help banks capture greater profits. Aside from the authors’ error in identifying Billy Beane as the coach of the Oakland Athletics rather than the team’s general manager, their advice is flawless. getAbstract recommends this article to commercial bankers and borrowers interested in a new approach to setting lending rates and fees.

In this summary, you will learn

  • Why traditional methods of setting commercial loan rates fall short,
  • How banks can integrate customers’ price sensitivity into the lending process and
  • How the new approach can make an impact on the bottom line.
 

About the Authors

Deepak Goyal et al. are professionals with the Boston Consulting Group.

 

Summary

As dramatized in the movie Moneyball, Billy Beane of the Oakland Athletics baseball team devised a new way to evaluate players based on statistics rather than scouting reports. The technique, considered unorthodox in 2002, is widely used in baseball today. In a similar vein, many businesses...

More on this topic

By the same authors

How Pricing Can Solve European Banking’s Earnings Crisis
How Pricing Can Solve European Banking’s Earnings Crisis
8

Customers who read this summary also read

A World of Three Zeros
A World of Three Zeros
9
Accelerating Bionic Transformation
Accelerating Bionic Transformation
7
The Most Important Number in Finance Is Going Away. Wall St. Isn’t Prepared.
The Most Important Number in Finance Is Going Away. Wall St. Isn’t Prepared.
8
America’s poor subsidize wealthier consumers in a vicious income inequality cycle
America’s poor subsidize wealthier consumers in a vicious income inequality cycle
9
How to Speak Money
How to Speak Money
8
The CEO Pay Machine
The CEO Pay Machine
8

Related Channels

Comment on this summary