One-page client case studies (Retail)

Tier-1 U.S. bank retail banking case study

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www.zafin.com | Tier-1 US Bank Retail Case Study Tier-1 US Bank Retail Case Study With over USD $2 trillion in assets, this tier-1 US bank provides banking products and services across retail, corporate, and wealth management. This US bank was unable to effectively price products and services based on its customer segments. It also struggled with operating efficiently in an environment of rising rates due to its highly inflexible legacy systems and infrastructure. BUSINESS CHALLENGES BUSINESS OBJECTIVES SOLUTION For this US bank, Zafin's solution will work alongside existing legacy systems to calculate and deliver a custom-specific interest rate. It will be the single source for all deposit product pricing information, which is then fed to other systems. With the solution, business users will be able to configure pricing rules based on pricing strategies, as well as set rate exceptions based on roles and thresholds. The bank's pricing engine will cover both new and existing checking accounts, savings accounts, Money Market Accounts (MMAs), Certificates of Deposit (CDs), and Individual Retirement Accounts (IRAs). The system will also involves a four-level pricing hierarchy involving line of business, relationship tier, geography, and segment. Existing infrastructure and systems at this tier-1 US bank were inflexible, rendering it very expensive to make any product and pricing changes. The bank's system lacked the ability to price products by customer segments, except at very high levels, and it did not allow for relationship-based pricing. Furthermore, as they were operating in a rising rate environment, this bank wanted a more flexible system in order to be more dynamic. Ultimately, the bank's existing system did not allow for the pricing flexibility necessary to operate in a rising rate environment. Zafin is implementing a customer-centric deposit pricing engine that allows for greater rate transparency and pricing flexibility. The solution is expected to result in an improved customer experiences through relationship-based pricing, reduced risk, and greater profitability. • Create a customer-centric deposit pricing engine • Deliver greater rate transparency and pricing flexibility • Create a dynamic system architecture to prepare for rising rates Provide product and pricing information from one single source to multiple other systems in order to: ANTICIPATED RESULTS • Enhanced customer experiences and reduced operational risk • Improved flexibility and rate transparency based on different customer segments • Ability to manage fees and rates in one central platform • Rate sheet publication and posting • Promo codes available during account setup for special rate • Greater profitability on interest- bearing deposit products To learn more about how Zafin can help you revolutionize your correspondent banking business, visit www.zafin.com

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