ABOUT THIS REPORT Whilst loan growth in most emerging markets has been high, the shift from asset creation to deposit generation has been under way since early 2007. The current financial crisis has only intensified the battle for funding and a high low cost core deposit base to increase a bank’s low cost funding framework. With banks controlling cost on all fronts, only the brave or the foolish are using rates alone to attract much needed funds. The magic for continued, very rapid growth in deposits is to grow them with cheaper rates. This report identifies key strategic and operational drivers of building a low cost world class deposit franchise, including product management, effective pricing, use of channels and a focus on asset liability management. It identifies successful techniques to optimise deposit products suite revenue & income potential and best practices in rationalising the customer base to improve customer profitability from liabilities. |
