Every part of the retail banking business has a FinTech waiting to modernise it and banks should be preapred to accept it.

That’s according to Nomis Solutions’ CEO and President Frank Rohde, who sat down with IBS Intelligence to discuss innovation, cloud computing and the banking industry.

“All the execs in banks talk about [in Europe] is regulation – it’s the FCA and the European regulations and what a Brexit might do to data,” Rohde says. “There’s surprisingly little talk about FinTech startups.”

In the US, he continues, the conversation is all about what startups are doing “to eat our lunch”.

“In San Francisco all you read about is startups and there are billboards everywhere advertising them,” says Rohde.  “But they don’t want to be bankers – they hate banks!”

This is where banks need to bite back and get a grip on understanding what technology can do for them. Nomis Solutions started 10 years ago, says Rohde, to build an infrastructure software for pricing.

Banks, he adds, were using simple spreadsheets and BOGSAT. When IBS Intelligence gives him a quizzical look, he explains the acronym as “Bunch Of Guys Sat At a Table”. Nomis hopes to make that process a far smoother, and more effective, process.

Since its founding the company has doubled in size every two years and plans to keep that growth going, with a focus on the US, European and South African markets.

“Working with our customers we’ve figured out there’s lots of pricing discretions in the branch,” says Rohde. “This isn’t a problem in the UK, as decisions have been centralised into their core systems. In most other markets, though, branch bankers negotiate – and it turns out that bankers aren’t terribly good at negotiation.”

Nomis has conducted work with one major American bank as well as a number of smaller firms in creating big data stacks that allows bankers to run scenarios and compare different interest rates. With the cloud, creating that reality for bankers is much easier.

“Until we had scalable cloud computing tasks were much harder,” states Rohde. “Valuating and calculating over 200,000 price points over weeks and weeks and running the exhaustive scenarios takes resources. Then the cloud came along and allows us to have an elastic set of instances and easy scalability.”

As for the future, Nomis is looking into increasing its footprint in the UK and other key markets like South Africa, Australia and New Zealand. The vendor is working with a leading Australian bank and hopes that many more will turn to its platform once the this initial pioneer goes public.

By Alex Hamilton

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com