Deposit Pricing Solutions

Document created by wendyfreitag@fico.com on Aug 29, 2017Last modified by neillcrossley@fico.com on Sep 8, 2017
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With FICO® Optimization Solution for Deposit Pricing, you can:

  • Improve deposit margins by 10%–30% through optimized pricing strategies
  • Lag competitor rates by 2–5 bps in a rising rate environment
  • Leverage industry leading analytics and innovative price-sensitivity modeling methodologies
  • Develop scenarios for stress-tests, understand the impact of deposit pricing on LCR, and achieve automated end-to-end auditability of pricing process
  • Seamlessly collaborate across stakeholders in treasury, finance, frontline, operations, risk office and marketing

 

Banks that implement FICO® Optimization Solution for Deposit Pricing, the industry's most rigorous analytical solution for deposit pricing decisions, can effectively grow margins and accurately forecast portfolio liquidity in a rising rate environment while meeting regulatory compliance.

Over the past several years, financial institutions have been flush with deposits operating under low but stable interest rates. This has resulted in reduced investment in advanced analytics to drive pricing decisions for deposit portfolios. However, significant change is on the horizon — a more dynamic rate environment will require organizations to make faster, more precise pricing decisions. Simultaneously, increased regulatory scrutiny mandates greater transparency and enhanced reporting.

 

The FICO Advantage for Deposit Pricing:

Superior Analytics

Comprehensive Configurability

Flexible Engagement

  • Industry-leading optimization solution that solves for a large number of price variables
  • Easily handles a large number of constraints and business policies
  • Analytically rigorous price-elasticity models from the leader in analytic solutions for financial services organizations
  • Completely configurable solution delivers customized reports, models, objectives, price variables and rate sheets
  • Develop and set new unique constraints dynamically within scenarios with no incremental development effort
  • Leverage models and valuation frameworks tailored for your organization
  • Agile solution execution methodology rapidly delivers business value
  • Deploy solutions on-premises or hosted in the FICO® Analytic Cloud
  • Access to all models, constraint configurations and profit formulas

 

 

Key Features:

FICO Optimization Solution for Deposit Pricing helps not only set effective rates across deposit products, but also serves as the “command center” to manage the entire portfolio.

Other Deposit Pricing Information

  • A complete solution for overall portfolio management - access reporting, competitive analysis, model-based forecasting, price optimization, decision review/approval workflows and rate sheet distribution within a single environment.
  • Leverage FICO’s proven, superior analytical capabilities - rapidly construct predictive models that forecast deposit portfolio performance. Incorporate these models into the solution to customize specifically for the needs of your organization. Use what-if scenarios to fine-tune strategies.
  • Achieve comprehensive data, model and operational governance of pricing decisions - intuitive governance dashboards allow users to review model parameters, monitor model performance and achieve compliance of model risk office requirements. An operational governance dashboard provides history of past decisions alongside inputs and assumptions used for analysis, identifying reviewers and approvers of decisions, and optimized pricing strategies.
  • Solve large-scale complex deposit pricing problems with proven optimization technology - the optimization algorithm determines rates across numerous segments of the deposit portfolio, helping profitably balance margins, customer satisfaction and portfolio growth.
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More Information:

  • White Paper: Five keys to out-pricing not under-pricing your competitors
  • White Paper: See through the rabble rousing in Deposit Pricing
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