Realizing the value of greater precision in Deposits Pricing

    

Two lessons I’ve learned supporting our clients’ quest for more efficient pricing

I am very fortunate to play the role that I do within Nomis Solutions. Each day, I have the opportunity to look closely at Nomis clients’ real experiences with their customers, their intended policies and actual practices for delivering value and wield Nomis innovations to help our clients create wins.The insights shared during the Spending Wisely Panel during this year’s Banking Growth Forum provided a great opportunity for me to further appreciate this work and consider some lessons I’ve learned though a broader channel than I typically leverage.

Embracing and Redefining Limitations

One of the most common challenges I work through with Nomis clients is the lack of clear, measurable relationships between price and balance changes within pockets of clients’ portfolios. Alongside our clients, I can enter the early phases of our work together with high hopes regarding the role that pricing can play in helping the clients achieve their goals.In many cases, this is born out of my natural desire to practice control over nuanced, high-stakes sets of circumstances. Indeed, if only price could always play a measurable, consistent role in deposits growth and portfolio balance changes, then our clients’ pricing managers could reach their objectives with a few simple steps within software and my job would be easy!

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As the Spending Wisely panelists clearly articulated, deposits portfolio data and testing outputs illuminate complex stories in which price is often one of several factors at play, with it often being just as valuable to know where price doesn’t matter than where it does. That is, knowing exactly where data doesn’t bear clear relationships between price and balance changes can support the debunking of status quo strategies and ultimately fuel more efficient allocations of non rate value across portfolios. It turns out that what I considered a limitation and shortcoming of data has proven to be a source of valuable insight and unifying mission within their organizations.

The High ROI of Consensus Building

The Spending Wisely panelists dedicated significant time to covering the efforts they have undertaken to integrate data driven decisioning and innovations into key decision routines within their organizations. They cited that success with such integration is predicated upon building thorough consensus among stakeholders including Product and Finance, Sales, system/IT partners and compliance partners. While the very different objectives of diverse stakeholders and natural aversion to change can make attaining consensus very difficult, the panelists cited that the hard work in building consensus really paid off. That is, taking comprehensive, persistent steps to inform and coach their partners drove more accuracy and greater sanity in decision routines. Partners who were well grounded in the new tools and approaches (and their limitations) persistently supported their application in diverse, volatile conditions and were less likely to slow valuable, decisive actions with ill-informed requests and expectations. Thus, the hard work tied to consensus building had a high ROI in terms of the quality and efficiency of decisions.

Watch more about my approach to customer success in an interview at Banking Growth Forum 2019 and leave your questions and comments below and I'll get back to you.

Dave Nicholson BGF19

 

About The Author

Dave Nicholson is the Director of Customer Success within the Nomis Solutions Deposits Practice supporting US and APAC clients. Prior to joining Nomis in 2016, Dave spent 10 years in the financial services industry holding product management and pricing roles.