Tag: Deposit

10 Tactics To Dampen Deposit Betas

Lowering Deposit Costs

Cost of funding for community banks has risen notably, but the banking industry’s rising deposit betas is creating a greater challenge for community banks.  Deposit beta is the change in funding costs divided by the change in interest rates.  Rising deposit betas may require some community banks to change their focus on customers, products and ALM assumptions or risk a reduction in NIM and profitability. In this article, we highlight the current and projected state of deposit betas and then outline ten of the best tactics for dampening or even lowering the beta at your bank.

 

How Machine Learning Taught Us the Unified Deposit Formula to Raise Deposits: Part I

Cheaper Deposit Gathering

If you are looking for insight on how artificial intelligence can help banking, we give you the Unified Deposit Formula. Prior to using machine learning, we, like most bankers, thought about deposit pricing along a single dimension – price and sensitivity. However, it turns out, that price is not only just part of the equation but often a small part. There are thousands of other factors that play a part.

How To Structure A Relationship Commercial Account

Relationship Bank Account Structuring

While many banks say they are all about developing a relationship, few have an account structure to support that claim. Since deposit values are heating up, we thought we would take a look at what a commercial relationship banking package looks like and how you can use the package to drive fees, balances and profitability performance. Structured the right way, a commercial banking package does your heavy lifting for you. It speeds up the sales process, promotes cross-sell, retention and performance.

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