DEPOSIT EDGE
Deposit Analytics Problems, Solved - the DEPOSIT EDGE SaaS Solution
Core Systems / Data Warehouse Transactions
DEPOSIT EDGE
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
Client Situation & Successful Outcomes
Demo
Solution
Client Situation & Successful Outcomes
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
Demo
Solution
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
Client Situation & Successful Outcomes
Demo
Solution
Client Situation & Successful Outcomes
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
Demo
Solution
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