WESTPORT, Connecticut, January 27, 2016 /PRNewswire/ --
Earnix, a leading provider of integrated customer analytics solutions for financial services, and SourceMedia Research (a unit of SourceMedia, publisher of American Banker), today released the results of a joint industry survey named Strategic Deposit Pricing: Using Advanced Analytics to Optimize Margin and Volume in a Competitive Environment.
Based on responses from more than 200 bankers in North America, the survey finds that given the new interest rate environment, the top challenge facing bankers is the threat posed by competitors. In fact, 74% of respondents are concerned about their ability to meet asset and liability challenges in the shifting rate environment, putting at risk their deposit business strategic goals for 2016.
As a way to combat this challenge, more than half of the respondents reported that their banks are looking to employ advanced behavioral tools in their deposit business. These bankers intend to improve and invest further in their pricing analytics during year 2016.
"Banks need to begin positioning themselves for a rapidly changing environment," said Paul Vanden Heuvel, Principal Consultant for Earnix. "To meet new competitive pressures and rising interest rates, and aggressive growth targets, only a few banks currently use sophisticated analytics on customer data to align pricing to strategic goals. Paul also said "Banks that leverage analytics have a tremendous competitive advantage over banks without these capabilities. Advanced analytics are providing valuable insights in balancing deposit growth and revenue growth in markets."
Here are additional key findings from the survey:
- Revenue growth is key for 2016 as banks are focused on increasing margins
- Banks will need to price with precision to increase revenue. The survey shows that 43% of respondents price to a specific benchmark or competitor rate, 36 % price to increase revenue and 32% price to gain market share.
- Competition is the biggest obstacle in meeting goals for service fee income in 2016.
Visit Earnix Resources for the complete survey report.
SourceMedia Research (a unit of SourceMedia, publisher of American Banker) provides complete custom B2B research solutions for strategists, marketers, agencies and others seeking in-depth insight into select segments of the financial services industry. SourceMedia Research combines a strong technical competency in market research with deep market knowledge and focus. http://www.sourcemedia.com
Earnix integrated customer analytics software empowers financial services companies to achieve optimal business performance through data science and predictive analytics. The Earnix analytical solutions drive superior product, pricing and marketing decisions, while ensuring alignment with changing market dynamics. Earnix combines predictive modeling and optimization with real-time connectivity to core operational systems, bringing the power of analytic-driven decisions to every customer interaction. For more information visit http://www.earnix.com
Aviv Cohen, VP of Marketing