Falling Fed rates present both an opportunity and dilemma for deposit bankers. While banks should take the opportunity for significant down pricing, they need to approach with caution.
Most banks, facing a revenue shortfall compared to budgets anticipated rate increases, may feel compelled to take a meat-cleaver approach to downward betas. While this action appears on the surface to maximize margin, it conflicts with typical portfolio dynamics and runs counter to analytics trends in deposit management.
Join Novantas experts for an in-depth webinar on the state of deposits. During this session, we’ll cover the latest trends for consumer and commercial and the precision analytics needed to survive any rate cycle, including:
- How to manage the surge in retail CD renewals coming in the second half of the year
- The specific commercial behavioral segments where a 100%+ downward beta is warranted vs. those where minimal deposit repricing will result in a better balance and revenue outcome
Adam Stockton, Director, Consumer Pricing, Novantas
Chrystal Pozin, Director, Commercial Pricing, Novantas