SYSTEM AND COMPUTER PROGRAM FOR MODELING AND PRICING LOAN PRODUCTS

A computing system (100) receives transaction records (130) for loans taken at various interest rates (1904) for a loan segment (902). Performance indicators (1716) indicative of customer behaviors (1702) are computed (1806) using independent demand models (300, 302, 304, 306, and 308). Computing system (100) includes a performance indicator forecaster (112) that determines relationships between the performance indicators (1716) and various prices, or interest rates (1904). These relationships can include profit (1906) and/or volume (1908) relative to the various interest rates (1904). The relationships are utilized to select an interest rate (1912, 2102) for the product segment (902) for implementation by a financial institution.