Leveraging Data, Modelling and Behavioural Attributes to Optimise Lending and Deposits while Complying with Basel III

Nomis Solutions shares insights on market dynamics and advanced data strategies to support bank growth while complying with regulation at the ARCA National Conference 2016

ADELAIDE, AUSTRALIA (Nov. 10, 2016) – Nomis Solutions today announced that Damian Young, the managing director of Nomis Solutions Australia would be presenting at the ARCA National Conference 2016. The conference, organised by the Australian Retail Credit Association will be held from the 9th to 11th of November at the Hilton Hotel in Adelaide, Australia.

Young’s presentation titled, “Optimizing Lending and Deposits Portfolios based on Customer Behaviours, Basel III and Profitability,” will begin at 9:00 a.m. on Friday, 11th of November 2016.

Tighter restrictions on investor property lending and foreign investment levels in Australia and New Zealand, have introduced new challenges to the home lending market. Home loan pricing is also under pressure as borrowers become more aggressive in scouring the market in search of better deals.

“In addition to the threat of cutthroat pricing, retention of existing home loan customers is also becoming difficult,” said Young. “There is a ‘leaky bucket’ syndrome at play here where banks’ lending activity is only just barely enough to maintain the status quo as existing customers leave for better deals.”

Since the adoption of Basel III liquidity measures, Australian and New Zealand banks have been focused on growing core deposits to support the funding mix and provide a more stable basis for lending. To compete for deposits, banks are maintaining high interest rate offers despite the lowering of the Official Cash Rate, putting pressure on banks’ margins and profitability.

“Another challenge for Australian banks is changing customer behaviours, attitudes and preferences,” said Young. “People want a personal relationship with their bankers. They also want the best deals, convenience and speed.”

Responding to these multiple challenges without sacrificing bank profitability, shareholder returns and asset growth, is a major hurdle for banks.

“Without a scientific approach to this conundrum, there is a danger that the market will ‘overprice’ deposits and ‘under price’ loans,” said Young. “Solely reacting to the market without an integrated approach to deliver more effective offers and pricing will potentially cause the same P&L issues we have seen in Europe and North America.”

The presentation will share case studies on the use of consumer behavioural information, data analytics, advanced modelling, and portfolio technology to optimise retention and acquisition without eroding profitability and growth. 

About the ARCA National Conference 2016

The ARCA National Conference 2016 will be held from the 9th – 11th November at the Hilton Hotel in Adelaide. It will commence on the evening of the 9th November with a cocktail function and formal proceedings will conclude on the 11th November. The theme of the conference is "Optimising outcomes in an uncertain world," building on the theme from last years' conference, which was "Harnessing disruption and innovation." Now in its fourth year, the ARCA National Conference has become the premier educational and networking event for the Australian and New Zealand retail credit industry - attracting over 350 delegates and 11 sponsors in 2015. To learn more about ARCA National Conference, please visithttp://www.arcaconference.com.au/ARCAC/index.

About Nomis

Nomis is a fast-growing Fintech software company that combines cutting-edge Silicon Valley approaches to big data, advanced modelling, and deep analytics into the industry-leading price optimization SaaS software platform. We help large and medium-sized retail banks better understand their customers and grow their businesses. We help these banks deliver win-win products and pricing in an environment that is increasingly competitive and highly disruptive. With experience in over 80 implementations, Nomis optimises over $1 trillion in banking transactions annually and returns more than $300 million to its customers every year. To learn more about Nomis, please visit http://www.nomissolutions.com