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CD Maturity Analysis

Situation

A progressive super-community bank wanted to provide CSRs and Branch Managers with advanced notice about customers with CDs that were maturing each month to not only roll-over their CD accounts, but also to use the opportunity to strengthen customer relationships.

Problem

Historically, the process of generating the requested information was slow, time-consuming and expensive.

  • IS spent considerable time each month generating a series of reports, detailing the CDs that would be maturing during the following month.
  • A report, with principal and interest rate, would be delivered to the Chief Financial Officer (CFO).
  • A book of reports, organized by branch, would be delivered to the EVP, Retail Banking.
  • A book of reports, organized by CSR, would be delivered to each branch manager.
  • Individual reports would be distributed to each Customer Service Representative (CSR) for their customers with maturing CDs.

Opportunity

The CFO and EVP, Retail Banking wanted to be proactive and differentiate between customers with a history of automatically rolling over their CDs and customers with first-time CDs. Showing the product mix of first-time CD customers would give the CFO and Treasurer an understanding of who might need encouragement to roll over or reinvest with the bank, and who are solid bank customers.

The EVP, Retail Banking, Branch Managers and CSRs, all wanted to be able to quickly and easily review relevant information to maintain productive personal customer relationships.

The SVP, IS wanted to save time and money on the reporting process while increasing user satisfaction with user-oriented reporting and analytics

Solution

Business Intelligence, Inc. (BI) was asked to recommend and implement a solution, as a component of the enterprise banking knowledgebase implementation. The BI team assessed all aspects of the objective and implemented the Banking Performance Analytics model that organized information as follows:

  • The IS Team did not have to write any more reports. The BI Banking model included all reports, as well as the data structure for many more reports that could be modified and saved and shared by all business users. Because BI solutions are designed for end-users, all users were trained to access their reports and work with the information far beyond expectations.

  • The CFO and Treasurer could access daily, weekly, or monthly views of not only CDs maturing, but also what happened to those funds; were they rolled over or placed in another account, or did the funds leave the bank. The information was provided in both graphs and charts, so large amounts of information could be quickly understood. The ability to drill through from summary information to underlying detail enabled the CFO to analyze variances and exceptions, and then go directly to the detail, which most often answered the question.
  • The EVP, Retail Banking had the ability to work with the branch managers and CSRs to analyze the CDs maturing and discuss the best way to contact customers, considering the value of their relationship with the bank. A single source for all information strengthened a team approach to strengthening customer retention.
  • Branch managers and CSRs enjoyed the ability to better serve their best customers with significant account balances, giving them special attention regarding the bank’s investment options.

Summary

The CD Maturity Analysis model saved significant time each month – that translated into dollars saved and increased productivity – and enabled the customer contact team to know more about their customer, thereby strengthening customer retention and profitability.