Nomis Solutions Raises Strategic Value of Pricing for the Financial Services Industry with Introduction of Nomis Price Optimizer 3.3

Share Article

New Version Designed to Achieve Performance Targets through Strategic Pricing

News Image
During the past five years of developing smart pricing solutions for banks and finance companies, we've successfully helped them strategically use pricing to improve portfolio performance

Nomis Solutions the leader in Profit-based Pricing for banking and finance, today announced the immediate availability of Nomis Price Optimizerâ„¢ 3.3. Loaded with enhanced features, the new version helps improve a bank's ability to effectively forecast and monitor lending portfolio performance. The analytics are tailored to help simulate and optimize pricing to meet performance goals such as profit or volume increases in specific segments or markets.

Currently deployed at more than 10 banks and finance companies worldwide, such as Abbey, AmeriCredit, HBOS, and Washington Mutual Bank, the award-winning Nomis Price Optimizer Suite optimizes more than $4 Billion in consumer lending each month. The Nomis Price Optimizer suite includes solutions for the home equity lending and mortgages, auto finance, personal lending, and deposits markets.

"During the past five years of developing smart pricing solutions for banks and finance companies, we've successfully helped them strategically use pricing to improve portfolio performance," said Nomis Solutions' Chief Marketing Officer and Vice President of Product Management, Frank Rohde. "Our newest version provides an end-to-end pricing management process that gives banks a comprehensive framework to understand the impact of competitor price moves and changes in macroeconomic factors on performance, and then quantify the impact of price changes in specific segments and markets before executing them. It takes pricing to another level of sophistication and generates quantifiable results like 10-20% increases in profits and market share."

The three new features that set the Nomis Price Optimizer 3.3 apart include:

Forecasting Demand
The forecasting demand functionality provides pricing teams with a view into whether or not their portfolio will perform according to expectations and develop plans to respond to a changing market, competitive dynamics or a shift in internal goals. The Nomis Price Optimizer uses a number of available inputs such as macroeconomic data, seasonality effects, promotions, competitive data, user knowledge, and historical performance analysis to create a baseline of performance for application/loan volumes and expected profitability. With the ability to develop a forecast based on pricing and conduct stress tests, pricing teams can proactively test various pricing scenarios and adapt their pricing plans in preparation for changes in performance.

Monitoring Performance
Once prices are sent to market, the pricing team can compare the previous month's forecast and plan of action with the actual results by monitoring performance. They can also investigate the reasons for variations in performance because of rate adherence, competitor price moves, changes in cost of funds, etc. The Nomis Price Optimizer includes advanced reporting capabilities that allow the user to quantify, graph and share results with others at the product, portfolio, channel, geography or micro-segment level.

Understanding Cross Price Effects
The cross price effects functionality enables pricing teams to recognize potential conflicts and prevent cannibalization across products and channels. By understanding the impact of one product's price on other products in the portfolio, pricing teams can make much more informed pricing decisions before sending changes into the market. For example, by using the Nomis Price Optimizer, the pricing team can quantify the impact of lowering the rate on a HELOC product on the other home equity products such as the HELS and fixed rate loan options to determine how the price move will impact the performance of these other products. Cross price effects can also be used to better understand how price moves impact the performance of various channels before taking action.

AmeriCredit Corp., a leading independent automobile finance company, which offers full-spectrum auto finance solutions, has more than one million customers and generated $8.5 billion in origination volume in its fiscal year 2007. By using the Nomis Price Optimizer for Auto Finance, AmeriCredit can tailor the rates and terms for each dealer, customer, and product combination to provide greater control over credit mix and enable better tracking and control of pricing decisions.

"By using the Nomis Price Optimizer, we are armed with a solution that enables us to better and more proactively manage the dynamic and volatile lending environment with interest rate changes, competitor moves, and changing internal goals," stated Tom Schwartz, vice president of profitability analytics at AmeriCredit. "We have also improved our ability to execute on our pricing strategies across product lines and channels, which empowers us to better meet our customers' and dealers' needs and to increase shareholder value."

The Nomis Price Optimizer Suite 3.3 for Auto Finance, will be showcased at the 2008 AFSA Vehicle Finance Conference, February 6-8, 2008 at the Palace Hotel in San Francisco. For more information, please visit Nomis Solutions' website at or

About Nomis Solutions
Nomis Solutions is the recognized leader in Profit-based Pricing for banking and finance. Powered by price optimization technology, Profit-based pricing is an innovative approach that enables executives to strategically use pricing to achieve improved financial results, gain insight into customer preferences, and support compliance. The award-winning Nomis Price Optimizerâ„¢ Suite is a set of business solutions that combines pricing analytics, optimization, and execution into a comprehensive pricing strategy and process.

The suite includes specific solutions for auto finance, home equity lending, personal lending, mortgage, and deposits. Each solution delivers quick time-to-benefit, increases profits and market share by 10-20%, and provides valuable insights about how customer preferences impact product and portfolio performance, within a strong compliance framework. Select customers include Abbey, AmeriCredit, Ford Motor Credit Company, GE Money, HBoS plc, and WaMu. Headquartered in San Bruno, USA, Nomis Solutions has offices in Charlotte, NC and London, United Kingdom. Visit or contact us at or 650-588-9800.

Nomis Solutions and Nomis Price Optimizer Suite are trademarks or registered trademarks of Nomis Solutions, in the United States and in other countries. Other product and company names herein may be the trademarks of their respective owners.


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Visit website