The challenge: Inefficient rate management threatened revenue and client trust
A leading bank, handling $200B+ in deposits, faced inefficiencies in its management of interest rates, particularly for money market and liquidity products. These issues exposed the institution to both revenue leakage and regulatory risk:
- Manual, error-prone processes meant it took multiple days to implement a 50-bps rate change, risking $1M per day in opportunity cost across $100B of the deposit base.
- Lack of centralized rate control increasing operational risk.
- Rate changes required involvement from multiple teams.
Accelerating pricing operation transformation
Through rapid deployment (<6 months) of Zafin’s Managed Rates Engine, the bank fully transformed its pricing operations. Leveraging a centralized, API-integrated platform, the bank achieved:
- Real-time agility in reacting to volatile rate environments – switching from multi-day to same-day changes
- Enabled the bank to make all the pricing strategies performant, which generated significant revenue for the bank in a volatile market
- Reduced operational overhead to have one centralized team, managing global pricing strategies
- Complete rate transparency helped the bank to easily respond to customer or regulatory enquiries
- By shifting to an automated rate management model, the bank enhanced operational efficiency – while unlocking revenue and increasing profitability.
Unlocking strategic and financial gains
With Zafin, this bank was able to realize:
- $20 million in quarterly savings, simply by minimizing the lag in rate change execution
- 100% automation of rate processes, across migrated accounts and billions processed daily
Zafin empowered the bank to transition from reactive rate administration to a proactive, revenue-generating pricing engine in just half a year.