Question · Q4 2025
Alexander Villalobos questioned whether Regional Management could maintain its current pricing and loan yields despite declining interest rates, given the perceived inelasticity of its consumer segment. He also asked if Regional Management has extended loan durations, similar to other firms, to manage monthly payments or if its duration has remained historically consistent.
Answer
CFO Harp Rana explained that pricing is determined by market competition to avoid adverse selection or missed opportunities, emphasizing that the company's consumer segment primarily focuses on monthly payment affordability, which guides their pricing strategy. Rana confirmed that the company has not programmatically extended loan durations, noting that the auto-secured product inherently has a longer term. Additionally, he mentioned that loan-by-loan curing tools are used for customers facing payment difficulties, which might involve adjusting terms to ensure repayment ability.
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