Nomis Price Optimizer™ for Home Equity provides a pricing optimization and rate management platform driven by data, analytics, technology, and methodology. The solution enables home equity executives to:
The efficient frontier graph shows where you are vs. optimal growth/profit points.
Running different scenarios allows you to make smarter decisions that keep you on track to meet your goals.
By using a closed loop pricing process you constantly measure how your actuals are performing against plan.
Core to the solution is the ability to gain valuable insight into customer preferences and to leverage a more consistent and efficient pricing process. The Nomis pricing and profitability management solution offers an established approach to creating business value and competitive advantage through a proven pricing methodology that:
The solution is rapidly delivered with minimal IT impact through our proven implementation process and secure hosted environment. View 3-minute video »
The Nomis and ICON strategic partnership allows for the seamless integration of ICON LenderBenchmark data into the NPO. This exclusive partnership allows lenders to leverage empirical insights and a complete view of competitive rates and transactions across 6MM+ home equity transactions, representing over 80% of the US market, within the Nomis Price Optimizer. The integration automates the link between a lender’s review of competitive rates and pricing decisions, empowering lenders to:
For each pricing segment, Nomis fits a price response model to each client’s historical data in order to predict customer behavior (conditional and final book-to-approval rates) as a function of rate relative to a competitive benchmark.
In addition to the price response model the solution also applies an incremental profit model that forecasts profitability at the segment level. The profit model forecasts a full P&L for each segment including operating costs and credit losses as well as the impact of pre-payment and utilization on profitability.
This combination of response and profit models enables lenders to run what-if scenarios based on assumption changes to examine and evaluate potential performance outcomes.
The Nomis pricing and profitability management solution enables pricing managers to translate their business goals directly into the constrained optimization process. Constraint-based optimization combines price response models with your business objectives to generate pricing scenarios. It then automatically makes the profit/volume tradeoff on a cell-by-cell basis.
With the Nomis solution, lenders can:
This robust functionality enables lenders to stress-test their portfolio and pricing decisions under varying macroeconomic, competitive, cost, and risk scenarios.
NPO provides extensive analysis and reporting functionality for performance monitoring, creating a more informed basis for pricing decisions, including the ability to:
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The Nomis pricing and profitability management solution for home equity leverages customer data, competitive market data, advanced analytics, innovative technology, and tailored business processes to enable complete pricing scenario planning and profitability management.
This solution enables home equity lenders to change the nature of pricing from a computed metric to a strategic lever to achieve portfolio goals.