Tag Archives: Retail Banking

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]

Leave a comment

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]

Leave a comment

Risk & Compliance Reinventing Origination: Engage the Customer in the Process

Digital
May132019

In the first of my three-part blog series on reinventing the origination process, I discussed how digital transformation has reshaped consumers’ expectatiosn from the companies they do business with – which means that leading financial institutions must transform their customer experience as well if they wish to remain competitive. In the second part of my series, I want to focus on improving the customer experience, through customer information management focusing on speed, efficiency, and customer engagement. Develop a Holistic Approach to Customer Information Across the Organization There are few things that irritate a customer more than providing the bank with information they already have. Nothing screams “you are not important” more than having to provide my address to the very institution that helped me secure a mortgage to buy my property in the first place. Connecting legacy systems can be a messy and expensive venture, but the benefits of implementing... [Read More]

Leave a comment

Risk & Compliance Secure, Standardized Data Sharing Empowers Consumers & Promotes Innovation

Consumer data
Apr092019

Data is being used to improve all aspects of a consumer’s life in our increasingly digital world. eCommerce companies use data for a number of purposes, such as to personalize the experience of users across mobile apps and the web, suggest purchases and make it easier to find high-intent products. Retail stores use location data to drive consumers to local stores and restaurants and is even used in the store to better design its layout and available inventory. With the emergence of consumer-permissioned data in the financial services ecosystem we are beginning to see similar impact. Consumers’ ability to access and control their financial data is providing them with greater utility and benefit than ever before. Along with this comes expectations of better experiences, on-demand access and deeper insights. The good news is that consumer-permissioned data is providing the industry a platform for further innovation. Even now, at the tap of... [Read More]

Leave a comment

Analytics & Optimization Banking AI: 9 in 10 APAC Banks Feel They Lag US & Europe

Banking AI
Jan282019

Banking AI – APAC Survey We recently surveyed 33 chief risk officers from across Asia Pacific at our CRO Forum regarding the operationalizing of banking AI. We found that 91 percent of banks in Asia Pacific (APAC) felt they lagged behind banks in the US and Europe when it came to implementation of AI in their operations. The remaining 9 percent indicated that they were at least on par with US and Europe counterparts, while not a single respondent felt they were ahead. When asked about the biggest challenge in adopting AI and machine learning into existing bank operations, 42 percent indicated that it was the lack of available talent. The use of legacy systems (28 percent) came in second, followed by cost (16 percent). Banking AI – Operationalizing AI “The shortage of talent continues to be an issue worldwide as the use of AI continues to grow quickly,” said... [Read More]

Leave a comment

Risk & Compliance Competing in a Digital-first Environment: Is your Origination Process Ready?

Banking - Originations
Jan092019

“He who defends everything defends nothing” That quote, attributed to the 18th century King of Prussia Frederick the Great, refers to military strategy, but it could just as easily be used to describe the dilemma faced by financial services executives as they modernize their loan origination processes. In the first post of my multi-part series on how banks are solving common challenges in acquiring and retaining new customers, I looked at the challenges and opportunities financial institutions need to address in improving marketing performance. In this write-up, I want to focus on similarly practical solutions to common challenges in the origination process as it is a convergence point for a lot of different objectives necessary to deliver growth—provide a compelling customer experience, minimize credit losses, prevent fraud, maximize revenue, and comply with regulations. Fully addressing all of those objectives (or defending all of those fronts) is an impossible task. Move... [Read More]

Leave a comment