Novantas, Inc., the leading provider of bank pricing software and services, announced today its new research on the performance of PriceTek bank clients during the last 3 years. The analysis revealed that clients using the PriceTek Deposits system grew deposits 60% faster and achieved a 31% lower cost of funds than comparable peer institutions who were not PriceTek users.
The analysis covered the time period from June 2010 to June 2013 and covered the largest US Retail banks. The study examined the deposit growth rate and cost of funds for banks that used the Novantas PriceTek system, versus other Banks of similar size, footprint and business composition. The banks were compared to their peers, on an absolute basis, as well as on the basis of improvement in performance over the period.
“These results reflect both the pricing experience of Novantas and the power of our pricing tools in delivering real world results for Banks” says Dave Kaytes, Co-CEO of Novantas. “PriceTek banks become competitively advantaged in pricing, and as a result, realize better financial returns, as well as improved customer retention, minimized product cannibalization, better roll over CD renewal rates and other performance advantages. No other pricing service or product comes close.”
“Banks know that deposit pricing is not simply a math problem. The fact that PriceTek generates these results in today’s low rate environment validates our business model of providing clients with deep expertise, along with leading edge analytics,” says Darryl Demos, GM of Novantas Solutions. “Our customer elasticity models and optimization algorithms have been calibrated through every rate cycle we have experienced over the last 12 years, and ensure that our clients anticipate market moves and can get out ahead of the competition.”
PriceTek is the industry’s leading pricing solution for deposits and loans, helping banks manage over $700 billion in deposits, more than 10 times the self reported levels of its nearest competitors. In 2013 alone, Novantas grew deposit pricing customers by 45%, and is looking forward to another record year in 2014.
PriceTek is delivered through a state of the art cloud-based solution designed to minimize client costs and improve the analytical efficiency of bank staff. Installation is fast and ongoing maintenance, support, model calibration and hosting is provided by Novantas Solutions, minimizing the cost and resource demands on the bank.
For more information on PriceTek, including a demo of the tool, please email contact@Novantassolutions.com.
Originally published at BAI Retail Delivery 2013.