Are you overlooking depositor age in core deposit analysis?
Core deposits are the foundation of a stable, low-cost funding base for community banks and credit unions. But are traditional methods of deposit duration analysis giving you the full picture?
Many financial institutions rely on historical account behavior and account age to assess core deposit duration. But recent data suggests a different factor may be more predictive: depositor age. As banks navigate evolving interest rate environments and liquidity pressures, understanding the impact of depositor demographics is critical to refining ALM strategies and mitigating risk.
With the majority of community financial institutions holding over 65% of deposits from individuals aged 65 and older, institutions must reassess how these accounts contribute to long-term funding stability. Depositor behavior changes over time, and traditional models may be overlooking key risk indicators.
Download to learn:
- How depositor age influences deposit stability and pricing strategies
- Why traditional duration models may overlook key risks
- Actionable strategies to enhance ALM models with demographic insights
- The impact of an aging depositor base on funding and liquidity
Curious about how rising and stabilizing interest rates are affecting your loan portfolios?
Abrigo’s Exit Price Quarterly Review provides an in-depth review of loan portfolio fair value analytics based on clients for whom our advisors provide exit price disclosure work in accordance with ASU 2016-01 and ASC Topic 820. Learn about the yield and credit mark dynamics in recent quarters and how their impact on fair value has changed.
Download to learn:
- How interest rate changes have impacted loan portfolio valuations from 2020 to Q3 2024, including key shifts in yield and credit marks
- Differences in trends for estimated fair values of residential mortgages, commercial real estate, and C&I loans
- How a loan-level approach to fair value analysis provides deeper insights than those typically found in standard financial disclosures
Additional resources:
For the last 10+ years, DiCOM Software (now Abrigo) has surveyed loan review professionals to discover the key challenges of loan review and provide critical benchmark data. Drawing insights from the 13th annual Loan Review Survey, which gathered responses from institutions with asset sizes ranging from $500M to over $100B, this report delves into staffing trends, salary benchmarks, training, and productivity metrics within loan review departments. The 2024 survey revealed a shift in focus toward junior staff retention, shed light on evolving credit risk management practices, and examined the reporting lines that shape decision-making in loan review processes. This report will help equip financial institutions with the expert knowledge and tools to adapt and thrive in the loan review space.
You will learn:
- Key benchmark data like typical staff sizes and salary
- Best practices around loan review training and selection criteria
- How this information differs from previous survey results
Listen to loan review experts’ commentary on the 2024 survey data in this webinar.
Learn about AI & generative AI, and how they impact today’s financial institutions. In this whitepaper, see how Abrigo has approached integrating these transformative technologies and gain insights that may help your organization unlock its potential for business growth.
Key Takeaways:
- Introduction to AI and generative AI: Understand the basics of AI, machine learning, deep learning, predictive AI, and generative AI with real-world examples.
- Benefits of AI in banking: Discover how AI is improving decision-making, enhancing customer service, and ensuring compliance within banks and credit unions.
- Abrigo’s approach & use cases: Learn about Abrigo’s strategic, proactive approach to AI adoption. Gain insight into Abrigo’s practical applications of AI, from fraud detection to business intelligence and productivity enhancement.
- Future outlook: Explore AI’s potential in banking and learn how Abrigo’s innovative solutions are paving the way for growth and competitive advantage.
Fraud poses a significant threat to the trust and loyalty of customers and members of financial institutions. It leads to substantial losses, damages reputations, and can disrupt banking relationships, affecting profitability and growth. Beyond the immediate financial impact, the insidious costs of fraud extend to long-term damage to a financial institution’s reputation and customer trust.
This report presents the results of a nationwide survey conducted by Abrigo in March 2024. It delves into various aspects of fraud, providing valuable insights for financial institutions.
Download the report to learn:
- The prevalence of different types of fraud at participating financial institutions
- Respondents’ expectations and preferences regarding fraud prevention and management.
- How AI can both facilitate and combat fraud, plus tools and strategies for detection and prevention.
Fraud poses a significant threat to the trust and loyalty of customers and members of financial institutions. It leads to substantial losses, damages reputations, and can disrupt banking relationships, affecting profitability and growth. Beyond the immediate financial impact, the insidious costs of fraud extend to long-term damage to a financial institution’s reputation and customer trust.
This report presents the results of a nationwide survey conducted by Abrigo in March 2024. It delves into various aspects of fraud, providing valuable insights for financial institutions.
Download the report to learn:
- The prevalence of different types of fraud at participating financial institutions
- Respondents’ expectations and preferences regarding fraud prevention and management.
- How AI can both facilitate and combat fraud, plus tools and strategies for detection and prevention.
Stimulus programs, higher commodity prices, and stronger-than-expected yields have allowed many ag customers to pay back debt and/or bolster their financial position over the last three years. However, inflation, higher interest rates, and global conflicts and disasters continue to wreak havoc on the economy. Farm input costs continue to rise faster than the rise in commodity prices. As monetary policy continues to slow down economic growth, how will this impact ag producers going forward?
In this whitepaper, we examine the current economy and projections for the remainder of 2024. How will inflation, surge pricing, and increasing land values complicate the space for financial institutions offering ag loans?
Download to Learn:
- Overview of current ag lending environment
- Projections for 2024 and the potential impact on ag institutions
- Challenges ag lenders face when assigning credit risk and how to mitigate them
This SMB Lending Insights report is a snapshot of current financial trends and metrics that impact small and medium-sized business (SMB) lending and financial institutions. SMBs and financial institutions face tremendous uncertainty in the current environment, which is characterized by elevated interest rates, high inflation, and growing personal delinquency rates. The report outlines SMB loan origination trends, delinquencies on SMB loans (90+ Days Past Due, or DPD), and changes in the average loan sizes for various industries. Financial institutions can consider this information to benchmark trends at their own institution and to evaluate plans.
The report is based on data from Abrigo Small Business Lending Intelligence, a lending decision and monitoring engine powered by Charm Solutions. Abrigo Small Business Lending Intelligence uses observations from Abrigo’s client base of over 2,400 U.S. institutions to provide a comprehensive representation of the banking and financial sector.
Understanding the latest loan review benchmarks and trends
The 12th annual loan review industry survey from Abrigo (formerly DiCOM) reveals key loan review trends from financial institutions ranging from $100 million to $100 billion in assets. It also highlights some of the key challenges that loan review teams are facing and what strategies they are employing to overcome them.
This resource will show information on:
- Department staffing and roles
- Loan review team priorities
- Common reporting lines
- And more
The FedNow Service, which went live in July 2023, is the new instant payments infrastructure developed by the Federal Reserve to enable real-time payments between all financial institutions on behalf of their customers or members. However, some banks and credit unions are waiting to adopt FedNow until kinks in the system are worked out. Ultimately, the faster payment method could easily replace ACH, check, and card payments.
The payment rail has some built-in anti-fraud capabilities, and fraud and AML/CFT staff can take several steps during their institution’s FedNow implementation to combat and reduce fraud. Read this whitepaper to learn:
- How and at what pace your institution should implement FedNow
- Anti money laundering and fraud implications for FedNow and parameters to understand before adopting at your institution.
- Best practices for adopting FedNow, including employee training, customer education, and infrastructure reviews.