Maximizing Deposit Account Profitability and Volume through Automated Deposit Optimization

Banks have always faced the challenge of setting interest rates and fees on deposit accounts. But consumers now have many more options as they become comfortable with online banking, and industry regulations require greater transparency as well as equitable rates and fees for all consumers within a given segment. The decisions bank managers now make on the rates and the fees for each deposit product are more crucial than ever in the impact on bank profitability.

This white paper from Earnix presents how deposit optimization addresses the challenge by providing banks with a formula for achieving desired volumes and profitability in the face of conflicting objectives. Deposit optimization applies not only to the interest rate on CDs, money market accounts, savings accounts and checking accounts, but also to account fees. Just as higher interest rates attract new customers, so too do lower fees. Banks must thus contend with both factors when assessing the impact on deposit volumes and profitability.

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