Deposits360°® - Deposit Analysis Intelligence

What Separates DCG & Deposits360°® from Other Deposit Studies
One challenge with traditional deposit studies is that they too frequently become a “black box” analysis that is farmed out to a third party for the sole purpose of developing pricing and balance sensitivity assumptions for risk models. Also, too many institutions engage in deposit studies because they feel “they have to” at the request of their regulator. It is not surprising that institutions end up with little more than deposit assumption definition and support, thus limiting the value received for their money spent.

DCG believes that deposit studies, when approached from a more meaningful and robust perspective, should and will be viewed as an investment that provides a financial return. That’s why we developed Deposits360°.

Why Deposit Studies and Expanded Deposit Base Analytics Are Important
The stability and pricing sensitivity of a financial institution’s deposit base is a legitimate and significant industry-wide concern, as non-maturity deposit bases have not only grown well beyond historical norms since 2008 and “the great recession,” but have also experienced material changes in mix. For good reasons, regulators now expect institution-specific assumptions for interest rate risk and liquidity risk management and related stress testing activities. This is deemed a best practice for banks and credit unions of all sizes.

Changes in deposit levels, deposit mix, technology, and demographics combined with an unprecedented sustained level of historically low interest rates have created substantial uncertainty within all financial institutions’ deposit bases. This makes reliance on instinct and dated deposit behavior patterns for current decision-making suboptimal at best. Taking deeper dives into your deposit base is not a luxury, but rather a necessity – especially to the extent that protecting your core deposit franchise is an important priority.

Return On Your “Deposit Study” Investment
DCG’s Deposits360° converts what most institutions view as an expense into a valuable investment. There are numerous examples of value-added returns emanating from improved customer retention strategies and more informed deposit product and pricing strategies. Insights from Deposits360° have also influenced term structure strategies for loans, investments, deposits and wholesale funding that have added substantial earnings due to the benefits gleaned from meaningful deposit analytics.

We believe that deposit base clarity importantly leads to a broad-based set of decisions that further increases core deposit franchise value.