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Auto Finance Market Profits from Pricing and Profitability Management Suite from Nomis Solutions

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San Bruno, CA (PRWEB) December 2, 2008

Nomis Solutions, a leader in best-in-class Pricing and Profitability Management for financial services companies, today announced the immediate availability of its suite of solutions and services specifically tailored for auto finance companies. The Nomis Pricing and Profitability Management SuiteTM for Auto Finance capitalizes on Nomis Solutions’ domain expertise within auto finance and includes pricing, offer and portfolio optimization capabilities. Through a combination of advanced analytics, innovative technology, and tailored business practices and processes, the Suite for Auto Finance improves financial and operational performance.

A number of the world’s leading auto finance and bank executives were granted an exclusive preview of the Nomis Solutions Pricing and Profitability Management Suite at the Global Pricing Optimization Forum in New York. John William Snow, chairman of Cerberus Capital Management and former Secretary of the Treasury, delivered the keynote address and said, “Mis-pricing leads to misallocation of resources and waste in the system. In the current situation, mis-pricing has lead to cataclysmic results. But, businesses that are going to make it and break through to the other side are going to have to use analytics to really understand their customers in a way that’s beyond what they are doing today. We are doing it at Cerberus because we know it’s critical to success.”

Burdened by a combination of decreasing auto sales, declining margins, increasing losses, and a scarcity and higher cost of capital, auto finance executives need to be proactive and look for new approaches to pricing and profitability management. With the ability to quantify consumer response to pricing, executives can align pricing goals and a pricing strategy with business objectives and financial performance targets. This approach also supports an intelligent debate on the inevitable tradeoffs such as profit, volume and risk goals, tier/term mix, credit score distribution, and loan-to-value (LTV). Once performance goals are set, prices can be optimized to achieve profit, volume and credit mix targets from the portfolio level down to the micro-segment level.

Auto loans are the second largest subsector of asset-backed securities (ABS). Auto finance companies that are reliant on the ABS market are finding capital scarce and investors are demanding to know more about the underlying assets. This combination has resulted in an extremely selective secondary market that is requiring loan portfolios that are “originated-to-order” – meaning investors want transparent loan portfolios that offer only certain types of financing products to certain types of borrowers. However, most executives don’t have visibility into the makeup of the portfolio they would build based on the prices they are planning to put into the market. With Nomis Solutions Pricing and Profitability Management Suite, auto finance executives are able to forecast what they can expect to acquire as a result of a pricing action before putting prices into the market. The ability to predict the impact of price on consumer response enables them to optimize their credit and term mix within the context of their risk and ABS conduit tolerances.

The Pricing and Profitability Management Suite for Auto Finance includes:


Nomis Offer Optimizer: The Nomis Offer Optimizer is built for credit analysts that engage in deal-by-deal negotiations and want to customize offers to meet the needs of the auto finance company, the Finance & Insurance Manager, and end-consumer. This solution centralizes all the key data inputs required to make an informed decision, such as the characteristics of the borrower, vehicle and dealer, dealer history and the proposed deal terms. It also provides simulation and optimization capabilities for deal structuring and pricing so that credit analysts understand the impact of various options on key performance indicators (KPIs) such as profits and deal conversion before responding to the dealer.
Nomis Navigator: Designed specifically for senior management responsible for one product, a line of business with multiple products, or multiple lines of business, the Nomis Navigator is an executive dashboard that provides enhanced visibility into critical banking metrics for auto finance companies. This includes capturing actual and forecasted performance over time and highlighting areas of exposure in new originations by providing cautionary guidance and profit opportunities in the existing portfolio. It can be configured to meet the needs of a bank executive that is interested in better tracking KPIs such as volume, profit, credit mix, by product, geography and customer segment. In addition, alerts can be set up to quickly identify, diagnose and respond to emerging problems.
Nomis Price Optimizer: Created for executives responsible for pricing loan and deposit products who want to capitalize on strategic pricing to drive financial performance from the portfolio down to the micro-segment level. The award-winning Nomis Price Optimizer is the backbone of the Pricing and Profitability Suite and delivers a clear understanding of consumer response and how price impacts performance. By leveraging this information, pricing teams can quickly pinpoint which segments are incorrectly priced and better tailor pricing decisions to meet performance targets. Nomis Price Optimizer also helps build a more attractive portfolio mix to meet the “originations to order” requirements of the securitizations market.

“Nomis Solutions’ continued focus on the Auto Finance market in the U.S. and Canada is changing the way in which traditional and non-traditional lending institutions compete and service their customers,” said Frank Rohde, chief marketing officer at Nomis Solutions. “Auto Finance has always been astute at creating pricing models that account for the depreciation of the asset, incorporating customer response data and market and attitudinal changes. Nomis Solutions’ Pricing and Profitability Management for Auto Finance provides an integrated platform allowing executives to make decisions to better manage and optimize lending practices for profit improvements.”

Today’s announcement of Pricing and Profitability Management Suite for Auto Finance is complemented by the release of the Pricing and Profitability Management Suite for Retail Banks. Both solutions were unveiled to more than 75 bank and finance executives at the Pricing and Profitability Executive Forum in New York, and at the Pricing & Profitability Executive Summit in Europe that was co-hosted by TowerGroup and Nomis Solutions.

About Nomis Solutions

Nomis Solutions enables best-in-class Pricing and Profitability Management for financial services companies. Through a combination of advanced analytics, innovative technology, and tailored business processes, the Pricing and Profitability ManagementTM Suite delivers quick time-to-benefit, and improves financial and operational performance throughout the customer acquisition and portfolio management processes.

The Pricing and Profitability ManagementTM Suite of business solutions includes the award-winning Nomis Price OptimizerTM, the Nomis Offer OptimizerTM, the Customer Portfolio OptimizerTM, and the Nomis NavigatorTM. These solutions are designed to meet the specific requirements of auto finance, home equity lending, personal lending, mortgage, and deposits executives. Select customers include Abbey, AmeriCredit, Bank of Montreal, Chrysler Financial, HBOS plc, and Royal Bank of Canada. Headquartered in San Bruno, CA, Nomis Solutions also has offices in London, United Kingdom. Visit http://www.nomissolutions.com or contact us at 650-588-9800.

Nomis Solutions, the Nomis Price Optimizer, Nomis Offer Optimizer, the Customer Portfolio Optimizer and the Nomis Pricing and Profitability Management Suite are trademarks or registered tr

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Holtmeyer & Monson Helps Community Banks Boost Profits with SBA Lending

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Memphis, TN (PRWEB) November 9, 2010

SBA lending services provider Holtmeyer & Monson announced today that it is enabling more than 400 community banks to reap the benefits of government-based small business lending. By taking advantage of the companys highly specialized proficiency and out-of-house services, banks are able to offer small businesses the critical capital they need while generating substantial non-fee income for their institutions.

In the current economic environment, lenders are not only trying to find ways to provide commercial customers with access to credit, but also striving to enhance bank profitability. Small Business Association (SBA) loan programs are a great means to achieve both goals. Furthermore, the recently signed Small Business Jobs & Credit Act (HR 5297) which extends SBA lending stimulus provisions through December 31, 2010, has made the waters more perfect than everand Holtmeyer & Monson is helping banks to jump right in. The company enables institutions to create an instant profit center while alleviating the associated burdens by serving as their SBA loan department.

We had the honor of being recognized as Tennessee SBA Community Bank of the Year, Top Dollar for 2009 and attribute that success in part to our partnership with Holtmeyer & Monson, said Brad Hailey, president of Brighton Bank. The company provides the comprehensive services we need to help our customers and participate in SBA lendingand were clearly profiting. We added 33% of our normal earnings to our bottom line last year. Plus, Holtmeyer & Monson makes it painless because they really understand the small business customer and they do all of the hard work involved with each loan.

The company offers the full spectrum of SBA lending services from training staff and loan application and closing services, to securitization and sale to the secondary market and portfolio servicing. With Holtmeyer & Monsons out-of-house services, banks are freed from grappling with the complexities and the inherent bureaucracy associated with SBA lending and dont need to add any staff. The companys unique fee structure enables institutions to generate a great deal of income without incurring net costs because fees are capitalized right into a borrowers loan.

Were closing about 20 to 24 loans a year with Holtmeyer & Monson and we were recently named the third largest lender of SBA loans in Montana, said John King, president, Three Rivers Bank. Not too bad for an independent community bank with only two branches competing against Wells Fargo and other statewide institutions! The fact is that we probably wouldnt even be in the SBA loan business right now if it were not for Holtmeyer & Monson. They expertly guide our lenders with a proven system that helps them understand the SBA and the way it wants things done to get credits approved.

The only SBA lending services provider endorsed by the Independent Community Bankers of America (ICBA), Holtmeyer & Monson has a thorough understanding of SBA lending policies, what the SBA is looking for and how to make the process as straightforward as possible for a bank. Highly regarded by the SBA personnel, clients and borrowers, Holtmeyer & Monson is frequently sought as an authority on SBA lending.

SBA loans provide banks the ability to assist commercial borrowers who are, in some cases, desperately in need of capitaland they bring hefty profits for the institution. Once a loan is closed, the guaranteed portion can be quickly and easily sold to investors, typically earning the lender a 7-10% premium, said Arne Monson, president and co-founder, Holtmeyer & Monson. We are uniquely qualified to guide banks through the nuances of SBA lending and help them capture this lucrative opportunity. Our business model mitigates their risk while removing virtually all of the expense associated with establishing and operating an SBA loan department.

In an effort to further guide banks in capturing beneficial SBA lending opportunities, the company recently launched a bi-monthly newsletter, SBA Lending Matters. It is solely focused on providing tips and tools that help institutions optimize their small business lending strategies and stay abreast of the latest legislative developments and deadlines. To read and/or subscribe to the newsletter, visit http://www.holtandmon.com/newsletter/.

About Holtmeyer & Monson

Holtmeyer & Monson provides banks with comprehensive, out-of-house services and the high level of expertise required for SBA lending. The Company helps community banks offer small businesses access to capital while benefitting from a highly lucrative source of fee income. Holtmeyer & Monson covers every stage of the process from loan packaging and closing, to securitization and sale, through portfolio servicing. Based on its full-service capabilities and credibility, banks can be confident that their SBA lending credits will be handled expertly, efficiently and with the highest levels of safety and soundness. For more information, visit http://www.holtandmon.com.

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