Algorithmic market responsive deposit pricing

June 4, 2023


A G-SIFI global bank faced an imminent rising-rate environment and regulatory risk exposure associated with implementing Basel liquidity measures. Each of the bank’s domestic markets had historically operated deposit pricing manually and independent of regional and global oversight. No systems were in place to respond dynamically to market changes and enforce the necessary controls.

Zafin platform enabled:

  • Algorithmic determination and distribution of deposit rates based on market and balance sheet dynamics
  • Centralized system of record to feed treasury financial and regulatory reporting
  • Team of three pricing strategists to manage pricing execution across 55 countries

Resulting in:

  • Full substantiation of all pricing decisioning
  • Predictable and sustainable responses to market movements
  • Increased NII and NIM forecasting precision
  • Full compliance with Basel liquidity measures
  • Reduced cost and complexity of managing deposit pricing in domestic markets

Key Metrics

5 months time to value

98% balance sheet coverage within nine months

147 FTE reduction for managing deposit pricing globally

$ Billions in incremental NII