Nomis Solutions Launches Negotiation Product
SAN BRUNO, Calif. — Nomis Solutions has introduced a new product that is designed to allow credit analysts and underwriters to create tailored offers that can meet dealer and customer needs but also meet their own business objectives during negotiation.
Nomis Offer Optimizer provides such tools as a dealer scorecard, deal history, likelihood of acceptance and allows deal-customization "on the fly."
According to Nomis, auto finance companies that rely on negotiation with dealers often face two big challenges: the lack of a way to centralize information in order to make the best offer and difficulty in understanding how a customer will react to an offer.
Officials indicate that these challenges often result in a up to a 20 percent reduction in profits.
The Nomis Offer Optimizer is designed to provide insight into dealer and customer response to offers.
It provides credit analysts with a central location to store information about each potential customer, the dealer scorecard and dealer history.
Its interface is designed to allow quick testing of different offer scenarios and the accompanying profit and conversion of each offer.
For instance, credit analysts can check to see the potential return on equity impact a dealer's requested buy rate will have.
As such, the program allows them to change buy rates, monthly payments and loan terms in order to meet a specific ROE and dealer fee. Constraints can be included to make the best offer.
"The Nomis Offer Optimizer arms frontline staff with the tools they need to understand the benefits and tradeoffs of different offers," explained Frank Rohde, chief marketing officer and vice president of product management at Nomis Solutions. "It empowers them to make smarter decisions that meet dealer and customer needs while supporting corporate profit and revenue goals."
He continued: "There is a great opportunity for the Nomis Offer Optimizer to address a real auto finance industry challenge and extend our award-winning pricing optimization technology beyond the central office and into the hands of the frontline staff."
Also available from Nomis are SmartRanges, which are segmented optimized negotiation ranges available for each rate sheet cell, but not available for each individual deal.
According to officials, SmartRanges can be easily incorporated and don't require firms to change their underwriting process or systems.