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Why Daily Deposit Insights Matter

Jerry Bradley by Jerry Bradley Feb 28, 2024

Daily Insights

In today’s ultra-competitive deposit landscape, minutes matter. Bankers everywhere have accumulated war stories about how quickly deposit balances can shift. In the blink of an eye, high-value customers can be wooed by competitive interest rates or dazzling account features. Unfortunately, once customers are set up with a rival financial institution and have a new debit card activated, you can probably kiss that relationship goodbye.

Daily deposit insights are the key to making sure it never comes to that. Banks that have timely access to powerful data and analytics can spot signs that customers might move money before the funds are out the door forever. To hold onto their fair share of customers’ wallets, banks are getting savvy about monitoring customer deposit behavior day in, day out.

No More Guesswork, Just Insights

Casey Hill, CFO at Merchants & Marine Bank, Pascagoula, Miss., attests that working with up-to-the-minute data is a game-changer. He starts every day with a finger on the pulse of deposits with a KlariVis data dashboard showing the bank’s funding positions. “We really utilize our data and our customer behavior to know what’s working, what’s not, and what customers really value.” And the result is greater precision in what to offer depositors. Gone, he says, are the days of “throwing a rate against the wall to see what sticks.”

Monitoring Deposit Migrations

One key element of monitoring is understanding which customer relationships are the most valuable to the bank. Bankers can focus on those customers, monitoring balance shifts and large dollar transactions.  Migrations from one product to another can be another early warning that they are preparing to shift funds elsewhere. Being able to see daily shifts unfolding in close to real-time can make or break efforts to intervene before the funds are out the door.

It’s also important to track the impact of daily interest rate movements. For example, if your bank has 5% of its deposit base repricing in certificates of deposit in an upcoming month, do you know the level at which you can reprice with minimal impact on net interest margin? If all you’re seeing is a static report on what each category of deposits has done at the end of the month, you probably don’t have actionable data. Realistically, the money could already be gone before you understand the reasons and margin impacts. That’s why it is so important to have as early an indicator as possible.

Deepening the Discussion

Information is power. When you’re armed with daily data on deposits and insights into what your most valuable customers are doing, you are equipped to have sophisticated conversations with those customers. And you can do so at what may be a pivotal point in the relationship.

Banks know their customers, and they know their large customers, and that’s a fantastic start. But they need timely data to track and anticipate customer behavior so that, at the first sign of trouble, they can be alert and proactive. Give us a call to learn how we can help.

Discover how KlariVis’s enterprise data solution can give you and your team the timely deposit insights needed to better serve your customers and maintain growth.  Schedule a demo today.

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