Nomis Solutions Teams With Berkeley Research to Drive Fair and Profitable Pricing

Nomis Solutions, global pricing and profitability technology provider for the financial services sector, today announces a strategic teaming agreement with global advisory and expert consulting firm Berkeley Research Group (BRG) to help banks optimize their mortgage retention strategies, stimulate margins and simultaneously provide fairer and more transparent pricing for their customers.

Today’s announcement coincides with the recent anniversary of the FCA’s Mortgage Market Review (MMR) with its twin emphasis on affordability and fair and equitable pricing for customers.

The Nomis-BRG initiative represents a step-change in the UK mortgage market, utilizing both proven pricing analytics and customer segmentation based on customer needs and preferences. With one in two UK mortgages requiring a new offer on the maturity of their existing fixed-rate or introductory discount, understanding customers’ attitudes and behaviors is of paramount importance to Boards and Senior Executives in meeting the regulatory requirements of treating customers fairly.

Increasingly, regulators are utilizing behavioral economics to define acceptable practices, both for new and existing customers. The Nomis mortgage solution creates a comprehensive picture of the economic and competitive environment as well as consumer preferences and behaviors, enhancing a mortgage lender’s understanding of its customers and its ability to demonstrate fair and transparent pricing.       

Nomis’ proprietary mortgage market schema, to be launched formally this month and already being utilized by one of the UK’s leading mortgage lenders, uniquely combines the dual lens of market research data with the banks’ customer data, in order to dynamically segment UK mortgage borrowers into 50 distinct Borrower Types.

Commenting on the initiative, Tony Moroney, Managing Director, International Financial Services at BRG said “Our teaming with Nomis Solutions will help UK mortgage lenders to meet their business, regulatory and conduct requirements through a unique combination of Nomis’ proven customer segmentation and pricing analytics, coupled with BRG’s leading expertise in conduct and behavioral risk management methodologies.  Pricing will be more transparent and importantly appropriate to customers based on a real understanding of their needs and preferences. This meets a key requirement to evidence fairness in how they treat their customers.”

Damian Young, Head of Banking EMEA for Nomis Solutions stated, “Working with a high caliber consultancy like BRG is a great move for Nomis and provides a genuine new opportunity for the forward-thinking banks in the industry. BRG’s consultants have a wealth of experience working in mortgages and deposits and can really put themselves in the shoes of any bank’s CEO and advise objectively and impartially. Teaming with BRG puts us in a position to help banks tackle the regulators’ scrutiny and improve customer offerings responsibly and fairly. It is this kind of ethos which the banking industry should be founded on as it moves into the next stage of recovery. Bridging the gap between existing systems and innovative pricing technology is no longer nice to have; it is crucial for a bank to be successful.”