What ALM Misses: DDA Behavior and Funding Risk

Checking accounts are a core funding engine for financial institutions, yet many ALM models rely on historic assumptions that don’t align with observed consumer behavior. 

This session draws on anonymized balance and transaction data from over 20 million checking accounts nationwide to reveal how DDAs actually perform. Designed for CFOs and ALCO leaders, the discussion examines balance persistence, transaction velocity, rate sensitivity, and runoff risk—and how these factors materially influence funding strategy. 

Attendees will gain data-backed insights to better align DDA strategy with ALM, IRR, liquidity planning, and NIM defense in a volatile rate environment - without product bias.

Key takeaways:

• Identify where common DDA stability assumptions diverge from real customer behavior
• Evaluate rate sensitivity and runoff risk using large-scale behavioral data
• Align DDA strategy more confidently with ALM, IRR, and funding decisions