Deposit Analysis for Today's Environment

Understanding and controlling the impact of economic changes on deposit costs ranks as the single greatest risk to bank financial performance as interest rate rise. In every increasing interest rate cycle since 1990, bank margins have compressed due to faster increases in funding costs versus asset yields. Given most bank's heavy concentration in non-maturity deposits today, the potential volatility to costs are greater now than ever before.

In this session, we will examine how a bank might review its depositor composition and changes in that makeup over the past decade to better craft pricing strategies and design products aimed at meeting the needs of depositors, without blowing up the overall interest expense.

Covered Topics:

  • What constitutes a "good" core deposit study
  • Why a bank needs a more in-depth review of depositor profiles
  • What changes took place in the past decade
  • How those changes may play out in the coming years
  • What are the financial risks of being wrong on your beliefs?
  • Your options to build a more stable funding strategy to support the overall bank's risk profile

Who Should Attend?

This course focuses on strategic decision making and more in-depth review of depositor data. Participants should have a basic understanding of the need for, and concepts of modeling or measuring depositor behaviors.