When institutions rely on static assumptions, they risk falling out of synch with how customers actually respond to changing rates, pricing, and market conditions. But by grounding assumptions in observable data, regularly validating them against performance, and incorporating key behavioral drivers, institutions can help ensure their models reflect reality and perform as intended.
There is a massive tug-of-war between trying to lower deposit rates and protecting deposit relationships. Here are four ideas to help find the sweet spot in the struggle and gain an edge in deposit management.
On 9/17/25, the Fed announced a 25bps rate cut – its fourth since the tightening cycle ended in mid-2023, but the first since last December. It comes at a time of continued uncertainty regarding the forward paths of employment, inflation, and economic activity.
