Introducing Deposit Analytics™ A Predictive Solution

Deposit Analytics White Paper

From Greg Doner
CEO of FIMAC Solutions LLC

We are proud to introduce to the marketplace our new Deposit Analytics™ – A Predictive Solution.  Deposit Analytics combines the power of the most advanced price optimization statistical and algorithmic model available in the world today with our expert Counseling Team. We do the heavy lifting, you implement.  It’s that easy.

Deposit Analytics, a financial analytics platform, provides an institution with predictive behavior patterns of their depositors and those in the area.  We utilize that information to predict behavior patterns under our recommended “Golden Key” rates. Then we provide an analysis of profitability of each deposit account and backtest everything for accuracy.

This is truly a solution that has never been available anywhere until today.  It is truly hard for us to believe that we are the firm that is fortunate enough to actually be the first in the market with this technology.  No more guessing at rates and balances, Deposit Analytics provides all the information and guidance needed.  Deposit Analytics is the new standard for Best Practices in deposit pricing management.

Deposit Analytics - New Best Practice in Deposit Pricing & Management

Deposit Analytics is our groundbreaking solution for optimized deposit pricing and management. Using our proprietary software we guide clients through the maze of deposit pricing decisions by utilizing mathematically based calculations using the information from data mining each institution’s depositor behavior patterns.

Begin managing your deposit costs today and starting saving 10, 15, 20, or more basis points annually on deposit costs while managing and growing your deposit base. End the reliance on wholesale funds and the practice of estimating offered deposit rates while know what your balances will be in the future.

With Deposit Analytics there is no more estimation of rates based on competitor’s rates or setting prices solely against wholesale funding costs. End the practice of walking rates upward to achieve balances, or depending upon off run specials or exception pricing to grow balances.

With Deposit Analytics you will know: the optimized price based on depositor behavior patterns in given rate and competitive environments; how to avoid training your depositors to be rate sensitive; your projected balances out several years; the profitability of your deposits; pricing by region; the duration of accounts with paying extra fees to a high priced consultant, and; much more.

How Does It Work

Our proprietary Deposit Analytics software takes uploaded extracts from your core processing system. We take historical deposit information as far back in time as available. The larger the data base, the greater is the accuracy achieved.

We take extracts on all accounts types, checking, savings, money market, club accounts, and CD’s – and define the depositor type, consumer, business, legal, etc. We take the information by account number and branch with the associated rate given, and the offered rate history of your institution along with the historical and current rates of your competitors. We load the historical Treasury curves in along with the Advance Forward Curve and begin the process.

Our statistical and algorithmic based model then determines accounts durations, depositor behavior patterns, market driven behavior patterns, likely competitor pricing decisions, and other key factors. We can then predict our Gold Key Rates along with projected balances and the profitability of those rates.

Once the model is run we then bundle everything up and deliver it to you – personally. Our consultant works with each client to explain the results and how to read them, what to do with the results, how the knowledge is spread across the institution, and assists the client with strategic moves available based on the newly found empirical evidence.

How to Get Started

To get started call us today. No software to buy, no big set up fees – just a subscription agreement and you are on your way.

Once a client it takes about 60 days to gather and load the initial data, test it for accuracy, and then load the following month’s data. After that clients received their results within about 10 days of each data submission every month. Mid-month updates can be modeled if unforeseen market conditions arise.

Call FIMAC Solutions today at 877-789-5905, Ext. 739 for get on the road to deposit profitability.

Read Up on Deposit Price Optimization

The following series of articles by FIMAC Solutions have appeared, beginning in December 2007, in Bank Asset/Liability Management newsletter. Visit here later for the final article in the series.

These reprints are made with the permission of A. S. Pratt & Sons.

Article 1 “Flying Blind on Deposit Price Optimization”

Article 2 “Still Skeptical After All These Years: Deposit Price Optimization”

Article 3 “Deposit Price Optimization – Old Ways Die Hard!”

 

FIMAC Solutions LLC
Creative Analytic Solutions for Depository Institutions

Asset Liability and IRR Management
Deposit Pricing Management
Budgeting Software

Financial Institution Management Associates Corporation
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