MBT Sandbox will help lenders make smarter product, pricing, criteria and affordability decisions using analytics of real-time data.
The tool uses MBT’s data to predict application volumes, measure the impact of changes to rates, fees and incentives, and provide comparison to competitor products.
The firm said there is not yet a confirmed date of wider launch but it has been working with lenders to develop the tool.
Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, said: “Lenders have traditionally used price as a lever to control volume and margin.
“However, this is outdated and unsophisticated – as it doesn’t take into consideration how often they are eligible and affordable against their peers, this can often result in a lender quickly having to pull products because it’s overloaded its service capability.
“Over the last 12 months, we have been incubating MBT Sandbox in conjunction with a handful of partners.”
MBT: Sandbox can help lenders optimise their margin
Toumadj explained that the tool could help lenders cut the time on product launches and new developments as well as ‘providing better outcomes for consumers”.
“It’s a powerful data-driven tool that will enable lenders to reduce time to market for new product developments and launch products with greater confidence as to how they will perform in the market.
“Lenders can use it to ensure they are optimising their margin through more accurately targeted products, control lending volumes and distribution, and focus the efforts of their sales teams.
“Lenders must juggle conflicting objectives, retaining existing members, competitiveness, profitability with good return on capital whilst treating the customer fairly and meeting regulatory requirements. MBT Sandbox will help lenders achieve these goals and provide better outcomes for consumers.”