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