Banks can no longer afford to make suboptimal decisions with interest margins at historic lows and interest expense rising
San Bruno, CA (PRWEB) April 29, 2009
Nomis Solutions, the leading provider of Pricing and Profitability Management solutions for financial services companies, today announced the availability of the Nomis Price OptimizerTM (NPO) for Deposits, designed to help executives drive balance and net interest income growth at a time when deposits are increasingly important to the long term health of the bank. The company also hired two deposits industry experts: Brian Buckingham, former Savings Group Product Manager at Chase Bank/WaMu and Paul Whitlock, former Head of Savings Bradford & Bingley Group. Combining the strength of its comprehensive deposit pricing software solution with deposits expertise, Nomis Solutions helps banks align their deposit pricing approach to current business objectives and the changing consumer market.
Traditional deposit pricing fails to effectively consider how consumers will respond, leaving executives with an inability to make fully-informed decisions about portfolio trade-offs. The Nomis Price Optimizer for Deposits empowers executives with a more advanced approach to pricing, providing a quantifiable understanding of how consumers respond to prices, and enabling them to anticipate the impact of price changes on profitability and balances before they are executed. NPO also drives a more sustainable and efficient pricing process, providing a common platform for data-gathering, analytics and price execution. By using this sophisticated pricing approach and process, the deposit business can gain a measurable competitive advantage that will carry through to more stable market conditions.
"Banks can no longer afford to make suboptimal decisions with interest margins at historic lows and interest expense rising," said Kathleen Khirallah, Managing Director and Practice Leader of the Retail Banking Practice at TowerGroup. "While some smart institutions are using pricing optimization, many more are in need of a more advanced approach to pricing in order to be more timely, flexible and responsive to the changing market."
Brian Buckingham, Deposit Practice Leader at Nomis Solutions, is an accomplished retail banking executive who has contributed to areas of high growth and is an expert in product, pricing and profitability management for retail banking products. As the former Savings Group Product Manager at Chase Bank/WaMu, Mr. Buckingham was responsible for management of the consumer savings and money market products, including management of the $35+ billion portfolio, product strategy and new product development. Prior to his role in the consumer deposit line of business, Mr. Buckingham was the pricing manager for Home Equity products, where he pioneered the Home Equity industry's first implementation of a pricing optimization solution. Mr. Buckingham began his career in the banking industry with multiple positions in Retail Bank Finance at WaMu, where he focused on deposit pricing and profitability as well as capital investment analysis.
"Our research has shown that approximately 75% of deposit accounts are mispriced relative to underlying price sensitivity. The increased importance of deposits to the long-term health of the bank and the high volume of repricing in today's evolving market are exacerbating the financial impact of this problem," said Mr. Buckingham. "The Nomis Price Optimizer solution enables consumer deposit business owners to pursue strategic portfolio goals by attracting and retaining customers with the right product at the right price. By optimally balancing the trade-offs between rate increases and decreases across elastic and inelastic segments, pricing optimization can generate increased balances, margins or both."
Paul Whitlock, Director of Business Development in EMEA and Retail Deposits Practice Leader, brings 15 years of experience driving innovation, launching successful products and growing margin and balances to Nomis Solutions. Most recently as the Head of Savings at the Bradford & Bingley Group, he managed a c£20bn liability portfolio, growing savings balances faster than any other provider in the UK market. He was named one of the Bank's Top 30 Leaders. Previously, Mr. Whitlock was the Head of Savings at HSBC Bank, where he managed c£40bn liability portfolio across HSBC brands, including First Direct and M&S Money. Mr. Whitlock began his career in the banking industry at the UK's leading direct bank, First Direct.
"Now, more than ever in the low interest rate and margin compressed environment, executives are feeling stretched to balance looking after the 'here and now' while planning for the future. Simultaneously running, defending and growing a deposit business is incredibly challenging. To complicate matters further, every pricing decision is subject to increasing scrutiny from customers, prospective customers, journalists and regulators," said Mr. Whitlock. "I joined the company for the opportunity to help banks innovatively drive financial, strategic and operational benefits in this difficult time, and to set them up with a competitive advantage moving forward."
About Nomis Solutions
Nomis Solutions enables best-in-class Pricing and Profitability Management for financial services companies. Through a combination of advanced analytics, innovative technology, and tailored business processes, the Pricing and Profitability ManagementTM Suite delivers quick time-to-benefit, and improves financial and operational performance throughout the customer acquisition and portfolio management processes.
The Pricing and Profitability ManagementTM Suite of business solutions includes the award-winning Nomis Price OptimizerTM, the Nomis Offer OptimizerTM, the Nomis Mortgage Portfolio OptimizerTM Suite, and the Nomis NavigatorTM. These solutions are designed to meet the specific requirements of auto finance, home equity lending, personal lending, mortgage, and deposits executives. Select customers include Abbey (part of the Santander Group), AmeriCredit, Bank of Montreal, Chase Bank, Chrysler Financial, HBOS plc (part of the Lloyds Banking Group), Royal Bank of Canada, Skipton Building Society and Yorkshire Building Society. Headquartered in San Bruno, CA, Nomis Solutions also has offices in London, United Kingdom. Visit http://www.nomissolutions.com or contact us at info (at) nomissolutions (dot) com or 1-650-588-9800 or +44 0207-189-8327.