Consumer deposits (retail savings) executives are doing their best to manage through the unprecedented challenges of today’s environment while identifying initiatives that will make an impact this fiscal year. Most are under pressure to achieve three key goals:

• Run a profitable deposits business

• Provide low-cost balance sheet funding
• Retain valuable clients

Traditional pricing of liquid savings accounts and time deposits is based largely on market rates and target spread. The fundamental problem with this approach is that it fails to appropriately consider how consumers will respond to the prices being set, leaving executives with an inability to make fully-informed decisions about NIM / balance trade-offs. This approach also doesn’t allow visibility into how pricing impacts the flow of balances between products in the consumer deposits (retail savings) portfolio, limiting the ability to meet strategic goals at the portfolio level.

Nomis Solutions can help these executives proactively manage deposits pricing during this dynamic cycle and gain an enviable competitive advantage that will carry through more stable market conditions.

The Nomis Price Optimizer™ for Consumer Deposits is a comprehensive software solution that provides a quantifiable understanding of how consumers respond to prices before they are executed, and what impact these changes will have on profitability and balances. We can help deposits executives achieve their goals in this fiscal year by providing a solution that enables them to use pricing more strategically in their business. Using our solution, they and their team will gain an understanding of:

1) consumer response to prices across key market segments and relevant products,
2) the impact of various price points on expected profits, balances, and accounts in each market segment, and the capability to optimize prices to meet strategic objectives, and
3) how various price points for one product impact the flow of balances between products in the portfolio.

Our solution also creates a more consistent and automated pricing processes, reducing tactical complexity and increasing pricing sophistication.

Achieve Significant Value in Just a Few Months
Pricing is the most immediate way to impact results. Improved financial results are seen in 4-5 months because our solution can be implemented in 16 weeks. With our solutions executives can gain 5-8 bps of incremental net interest margin at constant volumes* or increased balances at constant profits. 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?

*Based on a recent project with a top 5 UK bank to improve the performance of their retail savings business.

To learn more, read the recent Bank Systems & Technology article, As Deposit War Heats Up Smart Pricing Is Vital.

Contact us for more information on how we can help your Deposits business achieve similar results.