All posts by Glenn Grossman

Risk & Compliance Precise, Multi-Lever Promotional Pricing for Deposits: How to Actually Make it Happen

Promotional Pricing for Deposits
Jun122019

Here we are. My third and final post in the series on promotional deposit offers. If you’ve followed along this far, you may be saying, “Sure, that all sounds great, but it’s idealistic and pie in the sky. It can’t actually be implemented, delivered, and measured.” Realists (and skeptics) of the world unite. In this post, we’ll get detailed, real, and dive into the practitioners overarching question: “HOW?” How can anyone deliver on the vision and reap the benefits shared in our previous posts? Here’s the reality: deposit accounts reside within a “core system” that provides account features, such as balance, interest accrual, and account properties. These systems (even in modern systems) only manage accounts and cannot serve as a flexible pricing engine. So, how can banks use multiple levers to build sophisticated, intelligent pricing strategies with entrenched (and often inflexible) core systems? The answer—a price execution platform. How does... [Read More]

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Risk & Compliance Promotional Pricing for Deposits—One Size Does NOT Fit All

Promotional Pricing for Deposits
May282019

Let’s face it—most consumers (me included) love a good deal. In retail, the enticing banner of SALE triggers purchasing behavior in many consumers. Like moths to the flame, retailers use attractive promotions to draw business. In this three-part blog series, we will explore: 1) the challenges with the current state of promotional pricing for deposits, 2) the art of what is possible, and 3) how to achieve the “new possible” with promotional pricing for deposits. In the competitive banking landscape for deposits, promotions have been around for decades. While banks are not (usually) offering free toasters today, they often use a “one-size-fits-all” approach to pricing. The common approach? The alluring teaser rate with a minimum balance that typically runs between 3 and 12 months. The teaser rate is often the go-to solution to raise liquidity. Yet, today’s consumers have more than one factor that affects their deposit decision-making. The duration... [Read More]

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