Deposit Pricing

Leverage advanced analytics to optimize pricing that’s profitable for you, and appealing to your customers.

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Overview

Price optimization is more crucial than ever. Even in today’s climate of dynamic rates and increased regulation, it’s possible to maximize portfolio performance, accurately forecast liquidity, and increase customer satisfaction.

FICO® Optimization Solution for Deposit Pricing helps you improve deposit account margins by 10%-30% by using relationship-based pricing to reward profitable customers. Preserve liquidity, even with more competition and more savvy customers, with industry-leading analytics and price-sensitivity modeling. And help stakeholders across all departments collaborate to offer attractive, yet compliant, pricing.

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"I don’t know how we were able to manage our Deposit forecasts and pricing decisions before we had this tool."

US CEO
Large Global Bank

Frequently Asked Questions

With the industry’s most rigorous, comprehensive analytical solution for deposit pricing decisions, deposits managers can achieve both profitability and increased customer satisfaction.
Deposit accounts aren’t just a stable source of low-cost funding. They’re your gateway to profitable, long-term customer relationships. With changing interest rates, savvy customers, and increasingly more competitors, maximizing your portfolio performance calls for a data-driven, customer-centric deposits strategy that helps you meet your goals without added risk. Banks need to find new ways to boost profits. FICO Optimization Solution for Deposit Pricing helps financial institutions use disciplined pricing to drive deposit growth, leveraging advanced analytics and optimization — while addressing the needs of customers and regulators.
On one centralized platform, entire organizations are able to seamlessly collaborate across product, marketing, finance, and treasury to create customer-centric, compliant pricing solutions. At the core of the solution is industry-leading, price-elasticity analytics that can be used in a continuous learning loop that empowers user with the ability to test and fine-tune strategies.
At the highest level, the deposits manager’s core business problem is managing an efficient value exchange with deposits customers over time. This value exchange between banks and deposits customers isn’t one of customers simply placing incremental savings within deposits products in exchange for rate; the bank’s deposits businesses play deeper, more nuanced roles depending on the conditions surrounding why customers save. Deposits managers’ use of value levers such as rate should be aligned with the reasons savings flow in and out of their portfolios, otherwise they are using rate to solve a problem that doesn’t revolve around financial value. When viewed across many customers in a deposit portfolio or market, the reasons for shifts in savings behaviors may be linked to broader macroeconomic conditions affecting saving behaviors, with different elements of the macroeconomy potentially having distinct roles on saving.
Amid the current macroeconomic global uncertainty and margin pressure, banks remained locked in intense battles for deposits growth and balance sheet stability. Combinations of rate offers in liquid and short-term products, cash offers for relationship deepening, and bundling across retail offerings were the traditional explicit levers employed, with banks experiencing varying degrees of success with their chosen levers. With this new backdrop as margin pressures tighten and become less certain, how should banks’ value exchange with customers evolve?
To help answer this question, FICO commissioned a survey of deposits customers in Canada and the US to learn more about customer savings behavior.
Case Study

Large Global Bank

Global bank improves trade-offs between growth and margin with consistent modeling, methods, and user experience
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Customer Development

From the Blog

Get the latest insights, solutions, and strategies for improving business results from the FICO experts and thought leaders.
September 23, 2019

Fishing for Deposits

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June 05, 2019

“The Art of the Possible” in Promotional Pricing for Deposits: A Precise, Multi-Lever Approach

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May 28, 2019

Promotional Pricing for Deposits—One Size Does NOT Fit All

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Seeing is believing.

Learn how a global bank improved deposit margins by 10%–30% through optimized pricing strategies, efficiently allocating interest expense towards growth objectives.