The Impact of Private Equity Investments on Banking & Finance.
New York and San Bruno, CA (PRWEB) September 26, 2008
Banking and finance executives concluded a two-day forum on pricing and profitability management in New York City this week. Experts discussed how the turmoil in the financial markets, impending regulatory changes, and changing consumer behavior will impact the pricing of retail credit and deposit products in the United States, United Kingdom and Canada. The Global Pricing Optimization Forum, hosted by Nomis Solutions, assembled more than 80 pricing experts in the banking and finance industry. Attendees explored how improved pricing and profitability management will impact retail credit and deposit pricing practices and how advanced analytics, innovative technology and best-in-class pricing practices and processes can be used to improve financial performance while providing fair and transparent pricing to consumers.
John William Snow, chairman of Cerberus Capital Management, L.P and 73rd Secretary of the Treasury, delivered the keynote presentation, "The Impact of Private Equity Investments on Banking & Finance." Along with the Honorable John Snow, presentations by executives from leading banks and finance companies echoed similar themes, including:
1) Pricing is the single-most effective yet under-utilized lever that banking executives have at their disposal to improve business performance tomorrow
2) Pricing optimization helps manage increasing costs of funds and capital market constraints by identifying profit opportunities and "originate to order" portfolios for a severely tightened ABS market
3) Several banks and finance companies reported profitability increases of 8-20% in consumer credit originations through the deployment of pricing optimization technology
4) Mortgage lenders can capitalize on renewal pricing before rate resets in existing mortgage portfolios while effectively balancing the risks of delinquency and refinancing (prepayment)
"In today's challenging times, pricing is one of the few levers that bank and finance executives can pull to immediately improve performance across originations and portfolio management," said Frank Rohde, chief marketing officer and managing director of Nomis Solutions, Europe. "In order to effectively compete and generate high quality assets at appropriate margins, executives are turning to pricing optimization technology. One of the root causes of the current banking crisis is the mis-pricing of assets at the point of origination. Pricing optimization technology allows banks to put in place a rigorous data-driven pricing process that balances risk, profitability, consumer behavior, and market demand. Banks have the opportunity to fix some of the past lending mistakes in their existing portfolios and generate higher quality business going forward."
Financial services industry expert, Bobbie Britting, research director of consumer lending at TowerGroup, commented, "The banking crisis and potential changes in the capital markets will force banks to get back to the basics, which includes gathering deposits and making loans. In both deposits and lending, this boils down to two fundamental questions where pricing and profitability analytics are going to be essential to finding the answers. First, who are the bank's depositors and what should the rate be? Second, who should financial institutions lend to and how much should they charge? Pricing optimization allows banks to manage revenue, profits and risk more effectively across both sides of the business."
More information on pricing and profitability management can be found at http://www.nomissolutions.com.
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, Nomis Solutions delivers quick time-to-benefit, and improves financial and operational performance throughout the customer acquisition and portfolio management processes.
The company's business solutions include the award-winning Nomis Price Optimizer TM, the Nomis Offer Optimizer TM, and the Customer Portfolio Optimizer TM. 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, AmeriCredit, Chrysler Financial, HBOS plc, Royal Bank of Canada, and Washington Mutual Bank. Headquartered in San Bruno, CA, Nomis Solutions also has offices in London, United Kingdom. Visit http://www.nomissolutions.com or contact us at firstname.lastname@example.org or 650-588-9800.
Nomis Solutions, the Nomis Price Optimizer, Nomis Offer Optimizer, and the Customer Portfolio Optimizer 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.
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