Scotiabank

Scotiabank is one of the leading financial institutions in North America with an international presence in 50 countries. With headquarters in Toronto, the bank was founded in 1832. Scotiabank has more than 18 million customers and over $500 billion in assets. Scotiabank partnered with Nomis to implement the Nomis Customer Portfolio Optimization™ suite.

Key results

• Exceeded projected 1.3% uplift in assets retained (with no cost to margin) and $3.5 million in Net Interest Income over the first year
• Overall retention rate increased by 1.9%
• Average yield remained steady at less than 1 basis point below business as usual
• Average income increased by $5.1 million
• Additional results: Increased retention significantly above plan with direct mail campaigns in specific segments; kept sales officers within pricing guidelines; and heightened renewal activity during the offer period by phasing proactive contact.

Before Nomis, our renewal contact with customers was basically regulatory-driven. Nomis helped us with a much more disciplined contact strategy. What we needed was someone to apply analytic discipline to our mortgage retention initiatives and to provide assistance on which customers were most likely to attrite so we could focus our efforts on those customers. What it boiled down to was what customers to contact, how to contact them, and what renewal rate we should offer them. At the same time, our pricing was entirely dependent on our sales officer's negotiation. With Nomis, we were able to standardize our pricing and offer rates to our customers based primarily on their probability of attrition. We not only met our business case objectives, we exceeded them...while at the same time we were able to keep our margins stable.

Lezley Chafetz, Director of Product & Program Design, Scotiabank