DEPOSIT EDGE
Deposit Analytics Problems, Solved - the DEPOSIT EDGE SaaS Solution
Core Systems / Data Warehouse Transactions
Show “what we did” to maintain member / customer account records. Problems:
- Multiple transactions are required to record a single behavior across various deposit products
- No way to match up the transactions to understand what the consumer wanted to achieve
- Recording the transactions often spans more than one day further fragmenting the analysis
DEPOSIT EDGE
Reveals “what the member / customer did” to meet their changing needs:
Creates behavior events that track money movement from original source to final destination, even when these events span multiple Accounts, Products, Branches and Days.
Reveals NEW MONEY | LOST MONEY | CANNIBALIZATION deposit consumer behavior in fine grain detail as money flows at the individual account level.
Actively Grow Profits and Loyal Depositor Relationships
DEPOSIT EDGE is an innovative comprehensive solution that includes:
- Patented Deposit Behavior Analytics
- Systematic Repeatable Results
- Industry Knowledge Transfer
- Fast and Easy Implementation
DEPOSIT EDGE Success Stories - Use Case Examples
Control Cannibalization Cost
Control Cannibalization Costs
Situation
- US Credit Union with 140,000 members, 40 branches, $7 Bn assets
- During “war for deposits” peak competition for deposit balances 2019-2020
The CFO and CMO debated how much growth in promo CDs came from other products. Their estimates ranged from 25% to 80%,
Problems
- Cost of funds and ROMI impacted by promo CDs draining other deposit products
- Decision gridlock from imprecise cannibalization estimates
- Attracting “Hot money” that leaves on maturity
Successful Outcomes
- > $150 kpa cost of funds reduction (1.5bp)
- 10% improvement in ROMI
- 50% improvement in retention rate at maturity
Control Cannibalization Costs
Precise Facts to Inform Decisions
- Account level source and destination of funds flows expose actual cannibalization.
Quantification of Costs and Opportunities
- P&L impacts on COF and ROMI informs volume / cost tradeoff decisions.
Informed Pricing Decisions
- Promo rates set in context of other products to minimize cannibalization and “hot money”.
Continuous monitoring, testing, learning process
Retain Money at Risk
Retain Money at Risk
Situation
- US Credit Union with 140,000 members, 40 branches, $7 Bn assets
- Before and during COVID deposits “flood” of 2019-21
- CFO concerned high attrition rates in CDs was forcing aggressive pricing to secure core deposit funding
Problems
- High levels of CD attrition – up to 50% at maturity indicate Member needs not being met
- Negative impact on funding stability and liquidity requirements
Successful Outcomes
- > $300 kpa in deposit spread (FTP)
- 15% reduction in lost Money at Risk balances
- 80% retention rate on CD maturities
Retain Money at Risk
Understand the 3 causes behind MAR behavior
- A large expense
- Investment outlook uncertainty
- Need for greater return
Identify Members with Money-at-Risk behavior
- Lists of Members who recently moved money from CDs to shares inside the CU
Pro-actively engage Members to meet their needs
- Liquidity need – offer LOC, Loan
- Uncertainty – offer financial advice
- Rate Shopping – offer targeted rate