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Looking forward for strategic advantage.
How many institutions can project how depositors will behave as rates move and market alternatives become more enticing? Without insight from a comprehensive core deposit study into how depositors behaved in past rate cycles, institutions are essentially flying blind in a current environment that is changing daily. Are you effectively using data to drive strategic funding decisions?
Darling Consulting Group is pleased to introduce Deposits360°® Forecasted Core Deposit Study & Predictive Analytics. This enhancement to the Deposits360° platform enables institutions to create forward-looking forecasts to strategically study their deposits and drive stability while lowering funding costs. The Forecasted Study is a best-in-class quantification of:
How an institution’s deposits have behaved in the past
How they compare to peers
How they may rationally project them to perform in the future, given a specific market rate forecast
“The good news is that technology and predictive analytics have evolved, and the early adopters have a competitive advantage.”
Forward Looking Modeling
While traditional studies seek to quantify historical deposit activity to support rate sensitivity (beta) and decay assumptions for risk models, DCG’s forecasted deposit study is a new way to think about how depositors may be expected to behave going forward.
Multi-variable methodologies give users a dynamic, constantly-evolving outlook on how deposit rates and balances are projected to behave in various scenarios.
Your deposit base is not static, so why should assumptions be based on a one-time or annual review? Deposits360° updates model assumptions each time users input data.
Decay / Beta
Dynamic Beta calculations and vintage decay forecasting provide the quantitative rigor with easy to understand approaches.
With over 225 clients and growing, your institution will benefit from thousands of exam cycles and iterative model and process improvements.
Sophisticated But Understandable
Don't ever rely on a black box model again. The Deposits360° team educates all users on key elements of the study so that executives can be armed with actionable insights.
How the Forecasted Core Deposit Study Helps Clients
About Deposits360° Forecasted Deposit Study & Predictive Analytics
The study employs a first-in-its-class "bottom up" approach which:
Starts at the individual account level
Analyzes multiple account attributes
Factors in market rate dynamics and cross-institutional data
Calculates their combined impact on deposit behaviors
This allows the users to not only quantify historical activity with more precision, but also to mathematically translate the historical quantification into a forward-looking forecast.
Forecasted Core Deposit Study & Predictive Analytics
Dynamic Beta and Rate Forecasting
The DCG Forecasted Study generates dynamic beta forecasts for any economic environment. Users can simulate deposit rate paths for their own unique, fully customizable scenarios.
Looking Ahead to Create Strategy with DCG's Forecasted Deposit Study
Reactionary measures to outdated approaches still dominate today’s deposit management landscape. But what if you could look ahead instead?
Video: 3 Minutes
Deposits360° Forecasted Deposit Study & Predictive Analytics Features
A written report describing the institution-specific study results and outlining the key factors determining beta and decay assumptions
Detailed, statistically-derived, dynamic beta assumptions in which deposit rates move differently in every yield curve scenario
Detailed, statistically-derived, non-linear decay assumptions that change dynamically as beta coefficients change
Executive-level tear sheets for communicating with internal stakeholders
Cross-Institution Analytics that leverage over two billion data points from more than 200 clients
Enhanced analytics that allow customized alternative market rate outlooks for a view of deposit base reactions
Reporting that can quantify potential pricing lags and isolate the impact of account size and account vintage on beta sensitivity
Model lookbacks that provide clients with a better understanding of past model performance and accuracy
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