Industry

Banking & Financial Institutions

Company Profile

  • €12bn deposit book
  • Book composed of 12 on-sale and 100+ off-sale accounts
  • 250+ branches across Ireland

Situation and Objectives

  • Measure price elasticity at a product balance tier level
  • Develop a price optimization tool to provide business intelligence on performance and future decisions
  • Establish a refreshable process to embed pricing analytics

Optimisation Tool Output

Results

  • Optimize use of term deposits to better manage bank-wide funding strategy in-line with Basel 3 LCR and NSFR requirements through use of numerical solver with business constraints
  • Strong margin widening opportunities across the book to align with competitor movements – specifically targeting older notice accounts
  • Product simplification through selective consolidation of balance tiers among some products
  • Development of automated processes and target operating model to embed pricing analytics and optimization capabilities

Impact

  • 14bp margin uplift
  • €18m in revenue realized
  • 4% growth in LCR compliant deposits