A change in perspective - How adopting a forward-looking approach can enhance non-maturing deposit modeling

This whitepaper explores the evolution of Non-Maturing Deposit (NMD) modeling, a crucial tool for banks aiming to manage risks within their deposit portfolios. Traditionally, banks have relied on historical data to predict deposit behaviors and volume trends. However, recent market fluctuations have highlighted the limitations of this backward-looking approach, pushing the industry to explore forward-looking models that incorporate expert judgment alongside historical trends.

The whitepaper outlines the benefits and challenges of these forward-looking models, providing guidelines on how to effectively integrate expert insights, tailor scenarios for market-specific conditions, and manage diverse perspectives. Adopting these enhanced modeling practices allows banks to make more accurate predictions and improve risk management in today’s unpredictable financial landscape.

This whitepaper offers advice on moving to forward-looking NMD modeling and staying proactive in today’s rapidly changing market.