Challenging Conventional Wisdom in a Rising Rate Environment
Have you ever heard of anyone doing something truly remarkable by following convention?
In a rising rate environment, many bankers will follow conventional wisdom and short-term profit by holding off on increasing interest on deposits until forced to raise them. But conventional wisdom doesn’t account for changes in the retail banking landscape, advancements in offer management and shifts in customer loyalty.
This executive brief offers a less conventional, data-driven perspective based on the complex underlying relationships between customer behavior, pricing and market trends.
Move beyond spreadsheets to build informed, defensible rate strategies using a scientific approach.
Limit re-pricing through portfolio segmentation and targeted acquisition strategies.
Adopt a quantitative approach to monitoring the competitive landscape based on sensitivity insights.