Value Packs / Banking / Deposit-Flight & Fraud Guardian / Brief 02

Deposit-Flight & Fraud Guardian · Brief 02

Deposit flight · Affluent-Uninsured on mobile

Two peer banks repriced on Tuesday. The money left the same day, and it went to them.

DataGenie Brief · autonomous
$18.4B book · by cohort, channel, destination, pricing tier, sector and region · in your cloud

The one line you configure

Is any cohort losing deposits faster than its own normal — and if so, where is the money going and what are the peers paying?

In a nutshell

Bank A and Bank B raised their rates on Tuesday, to 4.55% and 4.40%. We held at 1.15%, so the gap to the best of them went from 300 to 340 bps. The same day, Affluent-Uninsured customers on MobileApp moved $71.6M against a normal day of $4.8M, then $88.3M on Wednesday — and $106.0M of that went to those two banks. No other cohort moved. It sits in the Standard pricing tier (78% of the outflow), in Tech and Crypto, and in Southwest and Southeast where our rate ranks worst. Complaint rate, first-payee ratio and account closures did not move — not theft, not service, not customers leaving. $1.74B remains and the gap is still open.

At a glance

Net flow, the cohort−$216.6Mvs +$4.9M normalinflow held — it is not being replaced
Tuesday outflow$71.6Mvs $4.8M normal daythe day the peers repriced
Gap to the best peer300 → 340 bpswidened Tuesdaywe held at 1.15%
To the two that repriced66.3%$106.0M of Tue–Wedsame banks, same day
Standard pricing tier78%of the week's outflowthe tier we never repriced
Still exposed$1.74Bgap still open$61.0M/yr to replace

Daily outflow as a share of each cohort's own balance

0%1.3%2.6%3.9%5.2%0.26%3.6%4.44%2.58%1.59%0.1%0.53%0.68%0.5%0.38%0.13%0.19%0.2%0.16%0.14%MonTueWedThuFri
Affluent-Uninsured · mobile
Affluent-Uninsured · branch
All other cohorts
a normal day · 0.24%

Shown as a share of each cohort's own balance, because in dollars the larger cohorts would look comparable. Monday they are all the same. Two peer banks reprice on Tuesday and one cohort goes to 3.60% and then 4.44%, while the other two stay where they were all week.

What else moved — and what did not

Inflow Value$31.4Mvs ~$28.9M normalheld up
Inflow / Outflow Ratio12.7%vs ~100% normalnot being replaced
Depositor Concentration31%top 20 of the $1.74Btwenty decisions
Balance-Weighted Run-Off12.5%/wkvs 40% LCR stress / 30dfour weeks at this pace
FD Premature Broken16.6%of the week’s outflowpenalty paid to leave
FD Renewal Rate60.1%vs 91.2% a year agowalked at maturity
First-Payee Ratio / Complaint Rate2.1% / 0.3%flatnot theft, not service
Account Closure Rate0.4%flatnot attrition

Inflow held up — this is not a collapse in new money, it is old money leaving faster than it can be replaced, and the net is −$216.6M against a normal +$4.9M. Two of these show intent rather than outcome: 16.6% of the outflow paid a penalty to break a locked deposit early, and six months of interest at 1.15% only pays back after two months. The bottom two rows are the discriminators, and they did not move at all.

Where it went — and which of them had just repriced

Bank Arepriced Tuesday · 4.15 → 4.55%$79.4M · 32%
Money-market fundsno reprice · ≈4.38%$71.3M · 29%
Bank Brepriced Tuesday · 4.05 → 4.40%$57.1M · 23%
Treasury Directno reprice · ≈4.30%$25.8M · 10%
Other / unclassifieddestination not resolved$14.4M · 6%

On Tuesday and Wednesday alone, $106.0M of $159.9M — two thirds — went to Bank A and Bank B, the two that had just repriced. Across the week 94.2% went somewhere paying more than our 1.15%, and only $14.4M did not.

By pricing tier — the money came out of the one we never touched

0%25%50%75%100%54%28%18%78%17%5%Standard — neverrepricedSeniorBulk / negotiated
Share of the cohort’s balance
Share of the $248M that left

Almost four fifths came out of the tier we have never repriced, while the negotiated tier ran 3.5%. That makes this a tier decision, not a book decision. Outflow rate by row: Standard — never repriced 18.0% · Senior 7.6% · Bulk / negotiated 3.5%.

By sector — two of them are most of it

0%25%50%75%100%12%31%24%33%22%46%18%14%Crypto & digitalassetsTech &venture-backedReal estateEverything else
Share of the cohort’s balance
Share of the $248M that left

Tech and Crypto are 43% of this cohort's balance but 68% of what left. That is how a pricing problem turns into a concentration problem. Outflow rate by row: Crypto & digital assets 22.8% · Tech & venture-backed 18.5% · Real estate 9.3% · Everything else 5.3%.

By region — the loss tracks our rate rank, with no exceptions

RegionOur rate rankShare of balanceShare of the $248MOutflow rate
Southwest47 of 5023.5%40.8%21.6%
Southeast41 of 5020.2%26.1%16.1%
West33 of 5021.7%19.5%11.2%
Midwest24 of 5018.0%9.8%6.8%
Northeast12 of 5016.6%3.9%2.9%

Worse rank, bigger loss, every step of the way. Southwest and Southeast hold 43.7% of the cohort and produce 66.9% of what left.

So what

The value here is the week. A rate move on Tuesday had cost us $216.6M of net deposits by Friday, and it is on a desk while the gap is still open rather than in next month’s pack. And the exposure is not the book — it is $1.74B sitting in one pricing tier, two sectors and two regions, which is small enough to price deliberately. Left alone it costs $61.0M a year to replace at wholesale.

The points that matter

A date, not a drift

Two peer banks repriced on Tuesday. Our gap to the best of them went from 300 to 340 bps, and $71.6M left the same day against a normal day of $4.8M.

$71.6MTuesday

It went to them

$106.0M of the $159.9M that moved on Tuesday and Wednesday went to the two peers that had just repriced.

66.3%to the two

One cohort answered

Affluent-Uninsured on mobile moved $159.9M across Tuesday and Wednesday. The other four cohorts saw the same rates and stayed close to a normal week.

1 of 5cohorts responded

The controls stayed flat

First-time payees 2.1%, complaints 0.3%, closures 0.4% — unchanged across all five cohorts. Theft, service and attrition are ruled out by measures that did not move.

3 flatdiscriminators

Recommendation

Aim at the Standard tier — 78% of what left, and the only tier we have never repriced. Call the maturing accounts first: those an RM spoke to renewed 42.6% against 29.8%, and 141 accounts holding $38.4M went uncalled. Break-even on this cohort is 3.01% — above that you are buying liquidity, not margin.

Questions it already answers

How much of the $1.74B still exposed sits in the Standard tier?

Which regions did Bank A and Bank B take the most from?