FICO® Strategy Director for Deposit Management

Grow profits and improve loyalty in deposit account

Overview

Overview

There is increasing pressure for banks to maximize revenue from existing customers while minimizing risk. Doing so while staying compliant with changing regulations and maintaining customer loyalty is challenging.

Strategy Director for Deposit Management enables business users to proactively manage their deposit account portfolios for enhanced profitability through effective overdraft management, pricing, fee waiver and deposit hold policies.

Retail banks have neglected deposit accounts and could be missing out on higher profits and improved customer satisfaction because they aren’t taking the right analytic approach to the challenges they face. For many institutions, inconsistent fee waiver or hold policies are leading to higher customer attrition and missed profits. These issues can be overcome to make deposits more profitable with the right analytic tools.

 

Core Benefits

Maximize Profitability

Stay compliant

Build Customer Loyalty

Maximize Profitability

Ensure that each decision is made within the right risk parameters (i.e. fee waivers, over limit authorizations, etc.).

Stay compliant

Strategy Director's easy to use system allows you to react quickly and make changes based on market conditions and organizational uniqueness. All while providing a clear audit trail of decisions to comply with ever-changing banking regulations.

Build Customer Loyalty

Create short-term profit and long-term customer relationship decisions (i.e. fee waivers, over limit transactions, etc.) to target problem accounts and reduce attrition of valued customers.

Solution Architecture

FICO® Strategy Director for Deposit Management

Strategy Director can be implemented quickly to produce results with its predefined capabilities. It provides transparency into the entire decision model, allowing you to make adjustments continuously to achieve sustained performance overtime. Strategy Director connects directly to existing systems and allows business users to easily add or update decision variables through its web-based system without the need of IT support. 

Key Features

  • Determine overdraft and/or shadow limits for deposit accounts based on account conditions and customer risk.
  • Work in conjunction with overdraft limit management, to determine in real-time whether or not to approve transactions that would take an account into a negative balance.
  • Determine whether or not to waive all or partial fees for bank fees such as non-sufficient funds (NSF) returned items, and ATM usage, based on customer value and risk of attrition.  
  • Establish the maximum number of days that a payment can be held based on FDIC regulations, then determine whether or not to reduce the number of hold days based on customer value and risk. 
  • Determine and implement liquid and term pricing strategies that ideally balance margins with portfolio growth
  • Define automated decision points to meet unique and changing needs of your operation.  
  • Test innovative challenger strategies on small segments of your population and compare against existing champion strategies before applying to larger segments.
  • Easily add and define new data fields and decision variables to enhance and/or alter the predefined decision areas     

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