This is one example of Fiservâs leading role in applying data analytics in an intuitive format that readily identifies opportunities that can generate revenue, margin improvement and savings for its clients. Through its core competency in Business Intelligence and Optimization, Fiserv is delivering the tools and expertise banks and credit unions require to analyze financial, customer and market data; draw valuable insights; and apply them toward improving their businesses.
Tapping into the power of its own web-based tools, Bank Intelligence Solutions at Fiserv recently examined the performance of every bank in the U.S. to quantify the impact core funding has on an institutionâs fiscal health and performance. Fiserv compared the institutionsâ core deposits ratio (core deposits to total liabilities) to return on equity (ROE) and return on assets (ROA). At the lowest end of the spectrum, the banks with a core deposits ratio of less than 55 percent have an average of negative 2.37 percent ROE and negative .25 percent ROA. At the other end, the banks with a ratio of more than 79.9 percent core deposits to liabilities are generating, on average, a 6.65 percent ROE and .72 percent ROA.
âBanks are not only challenged today because of poor credit quality, liquidity is an equally critical factor,â said Curry Pelot, executive vice president of Information Technology, Bank Intelligence Solutions, Fiserv. âThe proof is in the numbers. Institutions with a higher volume of core funding are more stable, have lower liquidity risk and interest expense, have a greater opportunity to generate fee income and are performing well despite the tumultuous market. Our tools are giving banks vital financial and market information and a quantifiable basis from which they can hone in on the right strategies to generate those core deposits.â
As part of Fiservâs 2009 ICBA Leadership in Action Webinar series, Bank Intelligence Solutions presented the findings of its core funding analysis to approximately 300 bankers. A replay of the webinar titled âTodayâs Keys for Core Fundingâ is available at the Bank Intelligence website. During this session Fiserv also discussed specific tactics higher performing community banks are employing in order to gain core deposit and transaction accounts, and demonstrated how its BancAnalyst tools give bankers the insight they need to determine the right funding sources and strategies for their institutions.
âBank Intelligence Solutions from Fiserv give us a complete picture of our strengths and weaknesses and the ability to fully analyze our marketplace to identify where we can grow core deposits,â said Mark Fox, executive vice president of Palmetto Bank in Laurens, South Carolina, a bank with assets of $2.2 billion. âThe comprehensive information we obtain through the BancAnalyst tools has enabled us to determine where we stack up against the competition, confidently map out a strategy and apply our resourcesâbased on hard numbersâto marketing efforts for highly targeted opportunities.â