Credit Risk Customer Management: Customer Positioning
Interactive

Credit Risk Customer Management: Customer Positioning

Intuition Publishing
Updated Sep 25, 2020

Customer positioning is the preferred position that a bank seeks to achieve, or maintain, within a customer's banking hierarchy. A bank's choice of preferred customer position largely depends on its ability to achieve minimum absolute income levels and meet risk-adjusted return thresholds. Here we describe the key considerations for a bank in determining its preferred customer positioning.