Nomis Solutions has published timely guidance for retail banks on the implications of Basel III.
London, UK – 21 May 2015 – Nomis Solutions has published timely guidance for retail banks on the implications of Basel III. The whitepaper, “Basel III and Retail Deposits Management,” answers key questions:
Why was Basel III introduced and how does it treat deposits?
How prepared are banks for incorporating Basel III into their deposits businesses?
What is the best strategy to remain profitable and adhere to the new regulatory environment?
As banks emerge from a long period of survival, repair and future-proofing, they are refocusing to ensure long-term stability, enhanced value propositions, more transparent operations and tighter control of their destinies. Leaders in the banking industry have to simultaneously meet rapidly changing consumer demands and more stringent regulations. As the Basel III framework is implemented in full over the coming years, the impact on day-to-day strategies and operations is fast becoming a reality.
In Nomis Solutions’ new whitepaper, Nomis VP of Banking Damian Young outlines 5 key strategies for maintaining and growing profitability as Basel III is implemented. Banks should:
Understand customer behaviours through deep data analytics to ensure that product design aligns with customer behaviours while satisfying Basel III measures.
Use data to inform business strategies and optimise pricing points based on Basel III.
Create an internal customer deposits function that is responsible for ensuring that all activities related to taking deposits, including pricing differentials, product differentials, and volume objectives, are aligned.
Devise deposit strategies with non-retail sources to generate the largest initial impact.
Rationalise and simplify the retail book: make it easy for the channels, easy for the customers, and transparent for the regulators.
Damian Young, Vice President of Banking for Nomis Solutions, commented:
“Adhering to new regulations while remaining profitable is no mean feat for banks. The best strategy is for banks to have a detailed understanding of their customers and to price based on this understanding. Using this method, banks can be unashamedly profitable while treating customers fairly. A price optimisation technology solution like the Nomis Price Optimisation Suite can also help provide evidence that the bank is adhering to new regulations. As leaders in the industry, Nomis helps banks tap into the wealth of data available to them. We have had excellent results with some of the biggest banks in the world.”