Solution Standouts
Uncover rate sensitivity and behavioral nuances of your customers to drive informed decision-making and tailored rate strategies.
Implement cutting-edge price response models fueled by competitor intelligence and macro-economic indicators.
Forecast multiple volume and profit scenarios with precision and measure real-time impacts on your P&L.
Business Impact
- Revitalize loan volume and margins, securing sustainable growth and financial success.
- Strengthen risk management practices within the lending portfolio to mitigate potential threats and safeguard assets, ensuring long-term stability and resilience in fluctuating market conditions.
- Maintain a competitive edge by proactively adapting to dynamic market changes with pricing strategies that outmaneuver the competition and maximize profitability.
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CHALLENGE
A Top 15 auto lender maintained a highly manual process for setting rates within their indirect auto business. They found themselves needing to constantly course correct pricing to stay on track to maintain volume and profitability goals.
SOLUTION
The bank set out to proactively address market changes and competition while streamlining internal processes. Leveraging Loan Rate Optimization through Nomis Price Optimizer provided comprehensive analytics for better understanding customer, dealer, and competitor behavior, enabling the identification of key trends. Additionally, the bank utilized constraint-based price optimization to enhance result prediction, visualize trade-off options, and develop firm-specific models aligned with profit and growth objectives.
OUTCOMES
11% increase in NIBTÂ
60% reduction in rate management time/effort
Increased confidence in forecasting and automated modeling