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Core Analytics Solutions

FARIN’s iPrice Core Analytics service lets you take control of your assumptions and increase the performance of your balance sheet.

Our iPrice Core Analytics service evaluates the rate sensitivity of your deposit accounts (beta coefficients and decay rates). This information enables you to better understand these critical deposits in support of improved management decisions.

Regulators encourage this type of analysis for more accurate ALM modeling assumptions.

Our capabilities in the area of core deposit analysis extend well beyond the ability to measure behaviors you have experienced in the past. We are recognized as top experts in the industry in designing segmentation strategies to help institutions achieve non-maturity deposit goals while effectively managing funding costs. To put it a different way, FARIN’s iPrice Core Analytics service can help you:

Significantly reduce betas (decreases in average funding costs in relation to market rates) in rising rate environments
Increase betas in falling rate environments
Go beyond analyzing historical behaviors into managing future behaviors of non-maturity deposits.

SERVICE LEVEL OPTIONS

SILVER LEVEL

FARIN will use the Institution’s actual historical data and apply the standard interest rate shocks of +/- 100, 200, 300 and 400 basis point movements. Analysis will be provided on standard deposit classifications such as DDA accounts, NOW accounts, Savings Accounts and MMDA accounts. Updates are provided annually, helping institutions capture the changing behavior of core balances in changing economic environments. The Institution will be provided reports and annual updates of the analysis.

Having the data is only as valuable as knowing how to interpret it and how to effectively use the information. With the Silver Level service, the Institution will receive specific recommendations. This will help the Institution to enhance the value of its non-maturity deposit sector. Additionally, the Institution will receive strategic recommendations aimed at improving pricing betas and reducing funding costs.

Silver Level analysis includes:

Pricing betas, indexes and lags at the sector and subsector level
Analysis by balance and account
Decay rates for non-maturity deposits at the sector and subsector level
Surge balance analysis
Institution specific interpretation of the results of the analysis
Inputs for the Institution’s asset-liability model
Strategic recommendations focused on how to better manage non-maturity account betas and improve funding costs

GOLD LEVEL

The Gold Level service option is the most comprehensive iPrice Core Analytics service. The Institution will have access to FARIN’s iPrice model, a complete interactive deposit pricing solution. Much more than a software program, iPrice is a partnership between your management team and the successful deposit experience of the FARIN team.

This service offers customized consulting engagements related to leveraging deposits to increase the Institution’s overall franchise value.

The consulting engagements are designed to assist the Institution in crafting, tracking and modifying more specific core funding strategies. These engagements will be an important component to the Institution’s overall cost of funds management and will assist with maintaining liquidity.

Gold Level analysis provides the following (includes all Silver Level services):

Pricing betas, indexes and lags at the sector and subsector level
Pricing betas, indexes and lags for CD’s and promotional accounts – at all levels
Analysis by balance and account
Surge balance analysis
Decay rates for non-maturity deposits at the sector and subsector level
Inputs for the Institution’s asset-liability model
Comparison to competitor rate data
Institution specific interpretation of the results of the analysis
Strategic recommendations focused on how to better manage non-maturity account betas and improve funding costs
Tactical deposit modeling with the iPrice Deposit service
Monthly updates
Initial Strategic Review
Periodic Strategic Reviews

To learn more about how we can help you with Deposit Analytics or to schedule a preliminary consulting call, please contact us at (877) 400-0037, email us at sales@farin.com, or click here to complete a product inquiry form.