Novantas Launches PriceTek

June 15, 2005

NEW YORK - Novantas LLC, a leading provider of management consultancy and information services to the financial services industries, has announced the launch of PriceTek, an analytical pricing support system for retail and small business banking.

"PriceTek provides a scientific toolkit that helps banks refine deposit pricing competitive strategies for each of their local markets, anticipate how balances will change in response to price adjustments, and understand the macroeconomic factors driving deposit growth," said Dave Kaytes, a Managing Director at Novantas.

Kaytes said Novantas' work with the largest organizations in retail and small business banking led to the development of PriceTek. The application continuously analyzes how deposit balances change with fluctuations in competitive prices.

Drawing on market analytics, PriceTek creates predictive models that indicate how potential deposit pricing changes will affect balance acquisition, growth, diminishment and attrition. This enables bankers to determine the optimal pricing required to maximize growth, including by region, product and customer segment, while maximizing net interest margin or fee realization.

PriceTek provides critical modeling tools. The Rate Analyzer helps the banks ascertain its relative pricing position and how it has changed over time, considering its own moves and those of regional competitors. The Customer Balance Predictor indicates the degree to which balances will change in response to contemplated price changes in forthcoming months. The MacroMarket Predictor provides comprehensive information about the economic factors driving growth in each market.

Novantas is the acknowledged leader in customer science and revenue strategy for the financial industries. The Firm specializes in applying advanced analytics and technologies to help clients make better decisions in marketing, product, pricing, customer management, and distribution.

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