In today's competitive financial landscape, community banks face the challenge of retaining and attracting deposits amidst the rise of fintechs and nontraditional lenders. PCBB’s latest Industry Insights paper, "Smarter Deposit Pricing: The Power of Relationship Modeling,” offers practical strategies to navigate this market.
With customers becoming increasingly rate-sensitive, banks must balance the need to offer competitive rates while safeguarding their net interest margin. Passive approaches to deposit rate management may lead to customer attrition, which only emphasizes the need for informed strategies. Leveraging profitability models allows community banks to analyze the impact of rate movements on customer relationships and overall revenue, facilitating targeted pricing adjustments. By leveraging profitability modeling, banks can uncover hidden opportunities within their customer base that can increase the loyalty of their best customers while protecting their net interest margin. Gain valuable insights into customer lifetime value, risk profiles, and revenue potential, empowering informed decision-making for sustained growth.
Embrace the future of deposit pricing with confidence. Download our Industry Insights paper today and gain practical strategies to enhance your bank’s competitiveness and profitability.
