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Illustrative engagements are composite examples showing how we approach this type of work. They do not describe a specific client.
Abstract
Understanding the trade-off between deposit retention and margin discipline.
A regional US bank
The question
A changing rate environment made historical deposit betas a weak guide to future customer behavior.
Our approach
We segmented customers by observed balance behavior and modeled rate sensitivity across products and relationship depth.
Methods
- Method
- Cohort analysis
- Method
- Econometric modeling
- Method
- Customer segmentation
- Method
- Scenario simulation
Outcome
Leadership gained a more differentiated pricing framework and a clearer view of which balances merited proactive retention.