Controlling Product / Branch Cannibalization Cost
Use Case

The Finance and Treasury department measures and manages A&L risk, but their reporting is at a macro level which does not enable him to fully understand his portfolio dynamics. He suspects that more than a third of the CD balance growth from promotions is “old money” flowing from other products and is concerned about the profitability of this strategy when product substitution (cannibalization) is considered. He asks: how can I better manage my cost of funds?