Novantas LLC

Novantas LLC Company Profile

THE SCOOP 

Getting the financial house in order

As the world's financial markets continue to fluctuate, the financial industry has a friend in Novantas. In recent years, the firm has rapidly expanded its research and solutions offerings into robust practices, adding thought leadership and financial software ingenuity to its reputation as trusted advisor to 20 of the top-30 banks in the U.S. The solutions and research business now contributes approximately half of the firm's revenue. The firm's research division, Novarica, provides information and perspective on markets, operations, and technology to financial services and insurance executives, while Novantas Solutions' software harnesses data analytics to measure, quantify, and accelerate revenue growth. Though most of Novantas' clients are headquartered in North America and Europe, the firm has increasingly served financial institutions in Eastern Europe, Southeast Asia, Latin America, and the Middle East; it now works with four of the top-10 banks in the world. 

There's no "I" in team

Novantas was founded in the mid-1990s by consultants and practice leaders from Booz Allen Hamilton, Bain and First Manhattan Consulting Group, who realized that their clients were looking for something different from the traditional group-think consulting model. Clients were tired of working with large consulting teams with generally inexperienced staff, who came up long on writing reports but short on delivering results. 

The firm that came about as a result of these observations seeks to break out of the old consulting mould. Novantas vows to deliver tangible changes-not mere paperwork and studies. Generally, its consulting teams have a higher director-to-staff ratio, and consultants are selected based on their expertise-whether it be financial analysis, statistical modeling or customer research. Teams are typically comprised of three to five professionals, led by one or more Partners, who bring a combination of industry insight and practical solutions.

The science of consulting

Novantas has turned its practical approach to consulting into a near-academic discipline. "Customer science," according to the firm, defines, builds, manages, and measures the total cosmos of revenue-generating capabilities for the firm's clients. This includes branding, market mix management, segmentation, product design, pricing, distribution management, sales execution effectiveness and customer experience-all tools in Novantas' consulting, solutions, and research laboratory. 

At the heart of these analytical methods are the firm's proprietary tools: MindSwift, the Stratascape database suite and PriceTek, to name a few. MindSwift, deployed as an application service provider, or ASP, systematically reviews a company's interactions with a customer, gauging the value and impact of the interactions and then designing possible improvements in technique, both conversational and online. These techniques can be instituted in existing customer relationship management applications or implemented through MindSwift on the client's desktop. Products in the Stratascape database suite are designed to help retail and business banks determine the optimum configuration (ie, location of branches, ATMs, and sales force) in each of the markets the institution operates in. PriceTek is another ASP service that analyzes how current and prospective customers respond to changes in a bank's interest rates, relative to the competition. Based on these elasticity measurements, PriceTek creates predictive models of how balance acquisition, growth, diminishment and attrition could be affected by pricing. Traditionally, these services and products have been sold exclusively to the financial services industry, though with new information-based products in the pipeline, Novantas has expanded these offerings into the insurance and brokerage industries.

Entrepreneurs as well as advisors

Novantas directors see themselves as a collection of entrepreneurs as much as business consultants-they are constantly on the lookout for new businesses to build to serve financial industries. Their information services division, Novarica, evolved from its consulting practices just five years ago to help insurance executives navigate the rapidly changing technology world. Together, the consulting, information and research businesses bring insights to clients across a range of different industries, and provide employees with the opportunity to work in different areas throughout the course of their careers.

 

IN THE NEWS

August 2013

The End May Be Near for Debit Cards

Sherief Meleis, a Managing Director with Novantas, was quoted in a Wall Street Journal article that suggested banks may try to steer consumers to seek payment options such as credit and prepaid cards. "It really could mean that the debit-card business is much less viable," said Meleis.

July 2013

A New Day Emerges as the Gap Between Bankers, Advisors Shrinks

Most banks today are focusing on their investment and wealth management programs as revenue from traditional lending and banking businesses continues to slide as a result of low interest rates and increased regulation following the 2008 financial crisis, according to an article in Bank Investment Consultant. The best-in-class wealth management units have penetration rates between 15% and 20%, so "there's a very significant upside," notes Wayne Cutler, Managing Director at Novantas.

April 2013

A New Era of Branch Wars at Nation's Big Banks

The revolution has started: with consumers using technology to carry out everyday banking tasks, America's banks are reconsidering the future of the branch. "We're thinking about 25 percent of U.S. branches are financially unaffordable," Kevin Travis, a Managing Director with Novantas, told CNBC.

March 2013

Online-Only Banks Start to Yield More than a Virtual Advantage

A Wall Street Journal article asked the following question: Are bank customers ready to adopt a purely web-based model? Overall, online-only banks saw their deposits rise $364 billion in 2012, up 32 percent from 2010 and more than 400 percent from 2004, according to Novantas.

August 2012

More Companies Join Mobile Payments Rush

Following announcements by Wal-Mart and Starbucks of plans to make it easier for customers to pay using smartphones, the Financial Times reported that the mobile payments market is finally moving into the mainstream. "There will have to be a big shakeout," says Steve Ledford, a Managing Director at Novantas.

May 2012

Withering Away

Bank branches, hitherto all-important, will become far less numerous-and look very different, according to an article in The Economist. Sherief Meleis, a Managing Director at Novantas, reckons that thanks to low rates banks are about $60 billion a year worse off than in 2007.

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Novantas LLC


485 Lexington Avenue
New York, NY 10017
Phone: (212) 953-4444
Fax: (212) 972-4602
www.novantas.com

STATS


  • Employer Type: Private
  • Managing Partners: David G. Kaytes & Richard W. Spitler
  • 2013 Employees: 150

  • Employment Contact

    www.novantas.com/careers_students.php


  • Major Departments & Practices

    Customer Strategy

    Distribution

    Marketing/Sales Effectiveness

    Merger & Acquisition Support

    Operations & Systems

    Pricing

    Risk Management

    Segmentation

    Workforce & Performance Management

Major Office Locations

  • New York (HQ)
    Boston
    Chicago
    Madrid
    Toronto

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