In recent years there has been increased emphasis on improving customer experience on mobile and online channels. Branch initiatives have focused on cost cutting: closures/consolidations, forcing customer migration to digital, reducing headcount. Our consumer research has repeatedly shown that this is a false approach.
In 2008 we saw many banks that heretofore appeared to be investor darlings, implode in a tsunami of defaults and skyrocketing LLPs that wiped out profitability. Why? Deposit weakness. Our analytics proved that banks that scored low on our Deposit Strength Index (DSI) were more likely to fail in the previous cycle.