Nomis Solutions Doubles Number of Customers in 2011 on Strong Demand for Price Optimization Solutions in Financial Services

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Adoption of Nomis’ price optimization technology accelerates as Company announces 10 new customers in 2011. Total volume of assets and liabilities optimized in 2011 using Nomis technology exceeded US$ 76billion across loans, deposits, mortgages, and credit cards. Six key trends to shape bank pricing in 2012 and beyond.

We are now serving more than 20 of the largest banks and finance companies globally, including all of the top 5 Canadian banks, several of the top 10 US banks, and market leaders in the UK, Europe, and South Africa.

Nomis Solutions, the leading provider of Pricing and Profitability Management solutions for financial services, today announced that it signed 10 new customers in 2011. New customer wins in 2011 include leading banks and finance companies in the US, Canada, UK, Europe, and South Africa. Three major auto finance providers chose to deploy Nomis technology to enhance pricing for their dealers and consumers. Three banks deployed Nomis technology to enhance interest rate pricing on consumer credit while two banks deployed Nomis price optimization technology to optimize deposit interest rates and another two focused on fee optimization.

Frank Rohde, Nomis Solutions’ CEO, commented: “We are very pleased with the market traction and customer satisfaction we have seen over the last 12 months. We are now serving more than 20 of the largest banks and finance companies globally, including all of the top 5 Canadian banks, several of the top 10 US banks, and market leaders in the UK, Europe, and South Africa. In total, our customers used Nomis technology to set prices on over US$76billion in retail loans and deposits in 2011, with significant profitability increases as a result of smarter pricing. In addition to deploying price optimization software, banks also scored more than 24 million individuals with the Nomis Score™, the banking industry’s only customer-level price sensitivity score. The continued adoption and expanded use of Nomis technology across retail banks is a testament to the impact that price optimization has on banks’ bottom lines even in an environment of compressed net interest margins.”

Going into 2012, we see the following six trends in bank pricing:

  •     Deposit interest rates continue to be at historically low levels in the US, Europe, and Canada. However, a number of forward-looking banks are investing in pricing technology to gain deeper insight into customer price sensitivity and demand for deposits. Nomis technology, including the Nomis Score™, can help banks optimize rates in today’s environment to find additional basis points of margin, and – more importantly – set up analytic and optimization infrastructure needed to respond to rising interest rates in 2013-2014.
  •     Mortgage and lending rates continue to be very competitive. In an environment of very thin margins, banks are investing in price optimization technology to refine segmentation and find consumer segments with lower price sensitivity to drive incremental profits. At the same time, lenders are increasingly tightening sales force discretion on rate or fee discounts. Nomis technology is successfully being deployed to reduce margin leakage at the front line, optimize pricing across the lending process, and optimize balances retained and spread on portfolio business during re-pricing activity.
  •     Credit Card pricing strategies continue to focus on better understanding of consumer price sensitivity and product preferences at the point of acquisition as focus on account growth continues to increase. Issuers are investing in more targeted pricing when acquiring new customers as the opportunity to revise post-acquisition pricing has become harder following the Card Act. Several banks are now using the Nomis Score™ in conjunction with risk and response analytics in their preapproval campaigns and the resulting pricing strategies have led to significant profitability improvements.
  •     Auto finance rates continue to be very competitive. Dealer rate sheets are disappearing at a fast pace, replaced by more granular and segmented pricing. At the same time, continued regulatory focus on dealer mark-ups has caused a number of providers to put in place alternative pricing mechanisms. Key drivers to successful pricing in auto finance will continue to be detailed demand analytics on dealer and consumer price sensitivity, competitive rate analytics, and refined segmentation and optimization.
  •     Continued focus on fee pricing. In 2011, the focus for banks was on checking account fees. With depressed interest margins through at least 2012, banks continue to focus on transaction and account fees to make up lost revenue. Successful banks will need to understand consumer preferences and sensitivity to fees at a customer level before making wholesale changes. With the Nomis Score™, we have introduced the only customer-level price sensitivity score in the industry to help banks understand the impact of fee changes before they are implemented, without the need for testing.
  •     Customer Value Pricing across products is again on the agenda for leading retail banks. While the banking crisis has slowed adoption of customer relationship pricing approaches, an increasing number of banks are investing in Customer Value Pricing, the ability to optimize prices across products based on the overall value of the customer relationship. Nomis Solutions makes Customer Value Pricing a reality by integrating all retail bank pricing tactics and analytics within the same optimization platform, data layer, reporting framework, and through a consistent definition of customer price sensitivity and profitability. As the only provider of price optimization technology across the bank, including mortgages, loans & lines, deposits, credit cards, payments, and indirect finance, Nomis is uniquely positioned to enable banks to make the right pricing tradeoffs across products.

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 enables banking executives to make more intelligent, data-driven decisions to align their pricing practices with customer needs and business goals. Through predictive insights about customer price-sensitivity and demand, the Pricing and Profitability Management Suite provides banking professionals the ability to unlock the profit and volume potential of their lending and deposits portfolios while satisfying risk, funding and regulatory constraints.

Nomis Solutions’ North American headquarters is in San Bruno, CA with its EMEA headquarters in London. Visit http://www.nomissolutions.com or contact us at info(at)nomissolutions(dot)com or +1-650-588-9800 or +44 (0)207 812 7251.

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Jennifer Horn
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