Deposit Boot Camp
Learning Objectives
A critical issue for financial institutions of all sizes continues to be funding growth in the balance sheet. This issue is brought on by a combination of ageing of the existing CD base and aggressive competition for deposit funds by brokerage firms and companies like ING, HSBC, eLoan, and eTrade. As a result, financial institutions are relying more on wholesale funds to fund growth in the balance sheet through FHLB and Corporate Credit Union borrowings, brokered and rate board CDs, and networks like CDARs.
At the same time, institutions are attempting to grow their own deposits with aggressively priced accounts and innovative products provided through third party providers like BancVue Rewards Checking and uSweep. Often times, however, these retail deposits are raised at marginal costs considerably above wholesale funding alternatives because institutions:
- Lack an effective deposit pricing process
- Fail to evaluate the marginal cost of new money raised
- Lack systems to track pricing decisions and their effect on demand
- Fail to understand how to design effective segmentation strategies that allow them to go after rate sensitive funds without paying up for non-rate sensitive funds
Program Content:
- A Best Practices Deposit Pricing Process - The first session lays out a conceptual strategic and tactical framework in which effective pricing decisions are implemented.
- Effective pricing and management of CD's - This session begins by examining the options in designing CDs. A variety of CD segmentation strategies will be introduced and discussed including offensive and defensive CD specials, and approaches to reducing cannibalization of existing low cost balances including minimum balance requirements, tiering, geographic segmentation, new money specials, and relationship pricing.
- Effective pricing and management of non-maturity deposits - In this session, issues relating to non-maturity deposits will be discussed including servicing cost, duration, and pricing.
- Implementing an Effective Strategic Review Process - This session closes the quarterly strategic review loop introduced in the first session. The session focuses on how to conduct an effective quarterly strategic review including reviewing the price/demand effect of strategies executed in the previous quarter and back testing the marginal cost of funds raised.
What are the financial institution takeaways from Deposit Boot Camp?
- A solid understanding of how to implement a best practices deposit pricing process.
- Product and segmentation ideas that can immediately be implemented.
Program Prerequisites: CEO, CFO, controller, lenders, retail officers, and ALCO teams
Program Level: Intermediate
Advanced Preparation: Please review Power Point slides before each session.
Cost, Dates & Registration Information:
This webinar consists of four 100-minute sessions offered through WebEx. Since the
Sessions are delivered using state-of-the-art distance education tools, you incur no travel costs!
People can attend without ever leaving the office!
This 4-course session costs $795.00
Attendees will also have access to a resource page containing recordings of all sessions and reading material designed to supplement materials presented in the course.
Upcoming Dates:
Instructional Method of Delivery: Group Internet Based
Farin & Associates, Inc. uses WebEx for online delivery. It has grown into the worldwide leader in online meeting applications, with 64% market share.
CPE Credit
Farin is able to offer 8 CPE credits per internet connection/paid registration. You must sit through the classes and be an active participant to obtain these credits. They are based on 1 credit per 50 minute increment.
Refunds
Refunds will be issued in the form of a credit to be applied to a future FARIN educational event.
For more information regarding refunds, complaints, and program cancellation policies, or any other matters, please contact Jackie Myers at 800.236.3724 or registration@farin.com.
Farin & Associates is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web Site: www.nasba.org