Top North American Lender
Challenge: Increase margins, while controlling for attrition risk when re-pricing personal lending customers.
Incorporating the Nomis Score as an incremental variable into the bank’s existing re-pricing approach to more accurately align the revised interest rate with the customer’s sensitivity to price. Leveraging the Nomis Score in identifying the most and least price sensitive customers, re-pricing appropriately resulted in an increase in net interest income (NII) of around 9.4% to 14% per account over the business-as-usual approach. Furthermore, Bank was given vital insight into the impact of price changes on lifetime profitability.
Leading Online Financial Services Firm
Challenge: To increase flexibility and improve profit margins while focusing on customer risk profile and overall customer value.
Using Nomis Price Optimizer, The Lender was able to enjoy a 15 to 1 return on investment. The five-year outlook projected a 15% increase in profit across product lines, a 20% incremental net interest income, and 16% shareholder value add. And in the end, Nomis Solutions and the Lender created a robust, repeatable pricing process with no significant behavioral change within the Sales Channel.
Top Ten European Bank
Challenge: To improve the quality of pricing decisions across the portfolio without compromising volumes, and if possible, gain insights about the overall business.
This top European Lender was the first to use Nomis Price Optimizer and has been a Nomis customer since 2003. Lender implemented a profit-based pricing approach to their $10BN consumer loans business and has not only improved the quality of pricing decisions but has improved profitability by 10%. The Lender continues to gain insight into customer price sensitivities and product performance, which has led to further financial and strategic gains.
Top Five UK Retail Bank
Challenge: Need to develop a more customer-centric and tailored approach to pricing that will enable pricing unsecured loans appropriately and prudently.
Using Nomis Price Optimizer, the Lender better serves their customers, augment its previously tiered approach to lending, and offer rates that are tailored to the market, account for risk, and best suit the customer. Borrowers are assured that the pricing process is efficient, consistent, transparent and meet regulatory requirements. In the end, the Lender improved 40 bps and profitability by 10%.
