Checklist For Efficient Consumer Deposit Growth

August 15, 2020 | Novantas Review

The value of core, relationship-based sticky consumer deposits can’t be underestimated in today’s banking environment.

Still, many banks aren’t taking advantage of analytics that can help avoid costly errors and improve their mix of high-value deposits as they navigate this unprecedented period.

This checklist for efficient deposit growth can go a long way in guiding banks to make the most of their valuable deposits.

CHOOSE

Identify long-term sticky deposits

Determine segments with favorable, higher-value retention profiles
Calculate duration analytics for portfolio products and segments

TRACK

Assess loyalty versus hot money

Analyze primary DDA relationships and core deposit growth versus single-service hot money
Leverage flow-of-funds level detail to spot new versus existing money and attrition risk

COMPARE

Align results to timely peer data

Analyze weekly rate position and understand true market clearing rates across acquisition and portfolio balances by peer set and industry totals
Explain variances to core industry metrics, providing executives a clear picture into key bank performance versus the market

DEEPEN

Measure cross-sell activity, including new-to-bank households

Monitor customer cross-sell behavior over time and retention impact
Analyze the effectiveness of promotional campaigns, including marginal cost of funds

OFFER

Define offers to deepen relationships, gather and maintain deposits

Efficiently target new money without cannibalizing the existing book
Pinpoint the best market and product to launch a campaign, tracking key competitor and market reference rates across both direct and branch channels