Crisis in promotional deposit pricing

Price promotions long have been an important tool for deposit-gathering, both to meet long-term funding goals and to quickly acquire balances in special situations. While the deposit-rich environment of recent years has muted much of the need for deposit promotions, these campaigns are set to proliferate as banks seek funding to accelerate loan growth and begin to Read More

By |2020-05-27T18:00:12-05:00April 22nd, 2016|Comments Off on Crisis in promotional deposit pricing

Navigating time deposit rate change features

With the market anticipating higher interest rates, banks may find it increasingly difficult to get customers to accept longer-term deposit accounts. One way to overcome this reluctance is by offering them rate change features in their account.However, as banks design these accounts, it is essential that all the variations are considered in order to avoid any unintended Read More

By |2020-05-27T18:00:12-05:00April 19th, 2016|Comments Off on Navigating time deposit rate change features

Faster funds availability for customers

It’s not a challenge that will dissipate anytime soon: banks’ never-ending efforts to balance security and convenience. If we focus in on convenience, it really boils down to consumers’ lifestyle needs and demands for banking services. Initially, we might think that their expectations are met with new, shiny self-service options and mobile app capabilities. But in reality, Read More

By |2020-05-27T18:00:12-05:00April 6th, 2016|Comments Off on Faster funds availability for customers

Deposit profitability as key to branch profitability

Deposit spreads have been the bane of banks in recent years but that could change if interest rates continue to rise. Here’s why bankers should pay more attention to their deposit balances going forward:In the summer of 2006, the Federal Reserve ended a two-year binge raising the Fed Funds Rate, which had soared from 1% to 5.25% Read More

By |2020-05-27T18:00:13-05:00March 18th, 2016|Comments Off on Deposit profitability as key to branch profitability

Three essentials for bank-at-work programs

It goes without saying that retail banking has many moving parts and Bank-at-Work programs are no exception. From target strategy to sales protocols and from results tracking to offer fulfillment, successful program implementation requires that banks maintain a comprehensive structure around their Bank-at-Work initiatives.But within that program structure, three things stand out because without them you’ll just Read More

By |2020-05-27T18:00:13-05:00March 11th, 2016|Comments Off on Three essentials for bank-at-work programs

Managing exposure to deposit refinancing

Long-suffering time deposit account holders are hoping for better deals the next time their CDs mature. Bankers anticipate this and model their future interest expense by applying “beta” estimates at the time of deposit maturities in their modeling. “Beta” is the percentage of interest rate changes that must be passed on to the depositors to maintain funding Read More

By |2020-05-27T18:00:16-05:00December 9th, 2015|Comments Off on Managing exposure to deposit refinancing

How to keep more profitable deposits

Bankers throughout the country are increasingly focused on both attracting properly-priced funds and creating more practical, customer-centric ways to retain quality deposits. It’s no secret that retaining appropriately-priced deposits is a more cost-effective proposition than chasing new funding. Financial institutions have invested greatly in core infrastructure and are hungry for better strategies to most efficiently leverage the Read More

By |2020-05-27T18:00:17-05:00October 19th, 2015|Comments Off on How to keep more profitable deposits

Adding time deposits to the strategic agenda

As the likelihood of the Fed raising interest rates looms ever larger, it’s time for banks to consider the strategic implications of their time deposit funding portfolios, commonly referred to as certificates of deposit (CDs). A typical bank will have between 10% and 40% of their balance sheet in time deposits. The magnitude of dollars spent annually Read More

By |2020-05-27T18:00:31-05:00July 24th, 2015|Comments Off on Adding time deposits to the strategic agenda

Coping with the overdraft conundrum

What to do about overdraft (OD) fees, or the loss thereof? For banks with assets over $10 billion, service charge income on deposit accounts, with OD income being the largest component, fell by almost half between 2010 and 2013 and at a rate twice as fast as for smaller competitors. But it won’t stop here. After the Read More

By |2020-05-27T18:00:32-05:00June 23rd, 2015|Comments Off on Coping with the overdraft conundrum

Valid forecasting of deposit accounts

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 this, you need to ensure that your deposit forecasting model is based on scientific and empirical principles that ensure reliable results. Read More

By |2020-05-27T18:00:34-05:00April 29th, 2015|Comments Off on Valid forecasting of deposit accounts