The TowerGroup is throwing its support behind a new loan pricing strategy that is based on profits rather than risk. Profit-based pricing, which is an offshoot of price and revenue optimization models, is used in the hotel, airline and manufacturing industries and “is the next level of pricing sophistication in financial services,” writes Bobbie Britting, TowerGroup’s consumer lending senior analyst in a new report, “Profit-Based Pricing: Time to Stop Leaving Money on the Table.” Risk-, market- and indexed-based...