Auto finance industry executives are trying to manage their business through unprecedented challenges while identifying initiatives that will make an impact this fiscal year. Most auto finance executives are facing three main challenges:

• Optimally allocating scarce capital to meet business objectives and financial goals
  
• Better managing risk by understanding the impact of price on credit mix targets and expected losses, and
• Creating a more consistent pricing process that improves visibility and control while supporting regulatory requirements.
  

Traditional auto finance pricing, based largely on market rates and risk, leaves money on the table. The fundamental problem with this approach is that it fails to appropriately consider dealer and consumer preferences for brands and products, and creates an inability to make fully-informed decisions about NIM / market share trade-offs.

Nomis Solutions can help executives proactively manage their auto finance pricing during this dynamic cycle and gain an enviable competitive advantage that will carry though to more stable market conditions.

Achieve Significant Value in Just a Few Months
Pricing is the most immediate way to impact results. Because our solution can be implemented in 16 weeks, you will begin to see improved financial results in 4-5 months. Although the KPIs are varied, on average, our customers have realized returns of 12-25+ bps of NIM while keeping volume constant or increasing volume by 25% while keeping profit constant. In addition, the solution is generally accretive in the first 3-9 months of use, making it one of the most attractive investments available.  What other initiatives are you considering that can deliver this type of speed-to-benefit?

What We Do
The Nomis Price Optimizer™ for Auto Finance is a comprehensive software solution that provides auto finance organizations with an understanding of how customers and dealers respond to prices and the impact prices have on performance. These actionable insights enable executives to use pricing strategically and dynamically to immediately improve financial performance. 

At a time when lending dollars are scarce and the performance of each loan is critical, our customers are able to optimally allocate their limited capital. Because they understand the impact of prices on conversion rates, profit and losses, they know what to expect from each customer segment and region at various price points as well as the impact of prices on performance across their portfolio.

Ford Motor Credit Company, Chrysler Financial, AmeriCredit, Royal Bank of Canada, Bank of Montreal and others are also using our solution to better manage risk. Most risk models do not take into account the impact of price on expected losses. Because they now understand the impact of price on expected losses, as well as the types of customers they will attract with various prices, our customers can build a portfolio that is aligned with their credit mix targets and conduit agreements.

The Nomis Solutions Pricing and Profitability Management Suite™ for Auto Finance includes: 

• Nomis Price Optimizer™: Created for executives responsible for pricing loan and deposit products who want to capitalize on strategic pricing to drive financial performance from the portfolio down to the micro-segment level. The award-winning Nomis Price Optimizer is the backbone of the Pricing and Profitability Suite and delivers a clear understanding of consumer response and how price impacts performance
• Nomis Mortgage Portfolio Optimizer™: Built for credit analysts who engage in deal-by-deal negotiations and want to customize offers to meet the needs of the auto finance company, the Finance & Insurance Manager, and end-consumer.
• Nomis Navigator™: Designed specifically for senior management responsible for one product, a line of business with multiple products, or multiple lines of business, the Nomis Navigator is an executive dashboard that provides enhanced visibility into critical banking metrics for auto finance companies.

To learn more, Request a complimentary copy of the Auto Finance case study or read about best practices in Auto Finance Pricing Optimization Implementations.

Contact Us today to learn how we can help your Auto Finance company achieve similar results.