Enhancing deposit profitability
Beat the marketplace squeeze by applying advanced analytics to your deposit
An integrated, analytics-based approach to managing the deposit business can help financial institutions substantially improve performance and establish a basis for continued profitable growth.
Deposits form the foundation of most financial institutions’ operations. Not only are they the lead product for most consumer and many small business relationships, but they can also deliver significant profits in themselves—given the appropriate focus and management.
Realizing those profits can often be a challenge, though. The scale of the largest competitors has grown, especially with recent industry consolidation. Additionally, new entrants have and likely will continue to enter the market. The proliferation of deposit-taking institutions and the increasing commoditization of products is eroding customer loyalty. And the emergence of online business models has created a challenging operating environment in which controlling costs and extracting value are more important than ever. These factors mean that growing and retaining deposits organically and improving profitability are ever increasing challenges.
Fortunately, you don’t have to fight the battle blind. Advanced analytics—powerful probabilistic and statistical techniques that extract business insights from complex customer, operational, and marketplace data—can help you better understand what drives margins and customer satisfaction in your deposit business and develop an integrated strategy for improving profitability.