According to Silvio Struebi, a Partner at Simon-Kucher, Asian banks are wasting money on deposits because they rely on outdated, “one-price-fits-all” strategies. Most institutions simply follow central bank changes and offer the same rates to large, undifferentiated customer groups, leading them to “overspend” on deposits.
Struebi argues that banks must stop this reactive approach and adopt data-driven, personalized deposit pricing. By analyzing millions of customer behaviors—such as salary credits and fixed-deposit rollovers—and combining this with competitor data, banks can create “elasticity models.” This allows them to predict how specific customer segments will react to rate changes and make targeted offers (via e-banking or email). This shift from blanket pricing to a scientific, dynamic approach helps banks attract stable deposits, reduce funding costs, and typically results in an 8 to 18 basis points improvement. Once mastered for deposits, this personalized pricing model can be extended to loans, investments, and FX products.
Click here for more on Banking
