Dan Geller

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Article

Valid forecasting of deposit accounts

Apr 29, 2015

By Dan Geller
Deposit pricing is challenging because it involves making assumptions about tomorrow. If your assumptions about the future behavior of your competitors and consumers are false, you will be making a very costly decision today. To avoid […]
Consumer Banking / Technology
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Article

Results of deposit pricing game theory exercise

Mar 11, 2015

By Dan Geller
In a recent article for BAI Banking Strategies, I broached a theory that deposit rates start rising prior to an anticipated increase in the Fed funds rate because of our tendency to try to outdo the […]
Consumer Banking / Technology

Article

Deposit pricing game theory for rising rates

Feb 2, 2015

By Dan Geller
Twice in the past twenty years we experienced a cycle of decrease and increase in the Fed funds rate. And in both cases, institutions started increasing their rates slowly and gradually a few months before the […]
Compliance, Regulation & Risk / Consumer Banking / Technology
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Article

Projection for Rising Interest Rates

Oct 15, 2014

By Dan Geller
Last January, we published in BAI Banking Strategies our estimates for deposit interest rates in 2014. Now that we’re three quarters into the year, it’s time to ask: How did we do? Let’s start with the […]
Consumer Banking

Article

Tracking Trends in Deposit Pricing

Aug 27, 2014

By Dan Geller
Tracking trends in deposit pricing involves three fundamental principles, each of which provides an additional perspective for the analysis: Distinguishing between an event and a trend. A pricing event is a single occurrence of rate changes […]
Consumer Banking / Customer Experience

Article

Strategic Matrix for Customer Acquisition and Retention

Apr 8, 2014

By Dan Geller
Financial institutions are facing extreme polarity in the financial needs and wants of the baby boomers, on one side of the spectrum, and the millennials on the other. The shift in demographics and advances in technology […]
Consumer Banking / Customer Experience / Marketing & Sales

Article

Ten Likely Scenarios for Rising Deposit Rates

Feb 11, 2014

By Dan Geller
The question about rising deposit rates is not “if” but when and to what degree they will rise. The timing of the rise in rates is relatively easy to project because rates are dependent on economic […]
Consumer Banking
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Article

Perfect Storm for Rising Deposit Rates

Sep 4, 2013

By Dan Geller
The second quarter of 2013 (ending in June) marked the second consecutive quarter over a six-year period that deposit balances in FDIC-insured institutions declined in response to lower interest rates. In that quarter, total domestic deposit […]
Consumer Banking

Article

Three is a Crowd in Service Fee Optimization

Jul 24, 2013

By Dan Geller
One of the most revealing and significant findings from our latest study on emerging financial services is that the principle of diminishing return applies to the bundling of financial services. The principle of diminishing return states […]
Compliance, Regulation & Risk / Payments
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Article

Turning Point at Hand for Interest Rates?

Jun 25, 2013

By Dan Geller
Twice in the past twenty years we experienced a cycle of decrease and increase in the Fed funds rate. In both cases, the Fed increased the funds rate by 25 basis points (bps) 12 months after […]
Compliance, Regulation & Risk / Consumer Banking
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Article

The Age Divide in Banking Channel Preference

May 22, 2013

By Dan Geller
One of the main factors financial institutions should consider in planning their mix of channels, such as the branch network, online banking and mobile banking, should be the age group of their customer base. The latest […]
Consumer Banking / Digital Banking
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Article

High Growth Potential in Emerging Financial Services

Apr 22, 2013

By Dan Geller
Banks are underutilizing the potential for selling emerging financial services to their customers. This is an advance finding from a consumer study currently being conducted by Market Rates Insight. The study found that, on average, only […]
Consumer Banking / Technology
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Article

The Size Advantage in Deposit Pricing

Feb 22, 2013

By Dan Geller
The notion that only the largest banks pay a lower annual percentage yield (APY) in return for the perceived status of “too-big-to-fail” is not entirely accurate. A more precise generalization of this phenomenon would be: the […]
Consumer Banking

Article

Time is Money in Deposit Pricing

Jan 14, 2013

By Dan Geller
Lack of timely information about changes in deposit rates can saddle a bank with a relatively higher cost of funds. The reason is that deposit re-pricing patterns are not uniform among institutions and across different pricing […]
Compliance, Regulation & Risk / Consumer Banking

Article

The Limited Impact of Unlimited Deposit Insurance

Nov 9, 2012

By Dan Geller
Analysis of the temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs) shows that this program had a greater psychological than practical impact on deposit customers. Therefore, it is not very likely that institutions will […]
Consumer Banking
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Article

Product Bundling Pays Off for Banks

Oct 23, 2012

By Dan Geller
Product bundling is a successful and profitable concept in some industries, such as cable television. But can it be utilized in the banking industry? Our view is that it can, based on a recent conference presentation […]
Consumer Banking / Technology

Article

Charging for Lifestyle Financial Services

Jun 1, 2012

By Dan Geller
Consumers’ lifestyle changes are going to redefine the role financial institutions play in the future. Although the main role of financial institutions will continue to be a source of funding and savings for personal and business […]
Customer Experience / Payments
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Article

Reality Check on Service Fees

May 2, 2012

By Dan Geller
The amount of money banks generate from fees on deposit accounts decreased from $36.2 billion in January of 2011 to $34.1 billion by year end, a drop of $2.1 billion or 5.8%. This is not an […]
Compliance, Regulation & Risk / Consumer Banking / Digital Banking
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Article

Certificates of Deposits Out of Favor

Mar 21, 2012

By Dan Geller
Certificates of deposits (CDs) have experienced a dramatic change in consumer demand, interest rate levels and type offered in the last five years. And it’s unlikely that the CD market will return to a more “traditional” […]
Consumer Banking
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Article

The Case for Regional Deposit Pricing

Feb 13, 2012

By Dan Geller
When it comes to deposit pricing, the U.S. market is far from homogenous. An analysis of the average deposit rates in the 50 states and District of Columbia during 2011 shows that the spectrum of change […]
Compliance, Regulation & Risk / Consumer Banking
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Article

Regaining Lost Fee Revenues via Deposit Rates

Nov 7, 2011

By Dan Geller
The introduction of the $5 debit card fee and its subsequent withdrawal can teach us two lessons: one, consumers are very sensitive to any additional banking fees, and two, there are more productive ways to improve […]
Consumer Banking / Payments