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7th Annual Treasury Innovation Forum 

Strengthen your treasury strategies to ensure resilient liquidity management and regulatory compliance in this uncertain economic environment 

April 22-24, 2020
New York City, USA

What our delegates think of us:

An Interview with Dennis Nykolyn, the Director, Deposit Pricing and Data Analytics, at Citi Commercial Bank

Ahead of the 7th Annual Treasury Innovation Forum , we spoke with Dennis Nykolyn of Citi Commercial Bank. Dennis is Director of Deposit Pricing and Data Analytics for Citi’s Commercial Banking Group. Dennis and his team provide bankers and senior management with deposit pricing strategy and guidance, supported by analytics and reporting, including the insights required to optimize deposit revenues for a multi-billion dollar portfolio. Prior to joining Citi, Dennis was Vice President of Deposit Pricing for JP Morgan Chase’s Small Business Banking group. Dennis earned his MBA in Finance at the Peter Tobin School of Business, St. John’s University in Jamaica, New York. He received his Bachelor of Science degree in Business Administration from the State University of New York, College at Oswego. Dennis has participated in various panel discussions at business conference forums, and has presented case studies at industry seminars.

What are the main challenges in treasury management today?

One of the biggest challenges is keeping up with the technology that clients expect from banks.  First, think about some of the excellent websites and phone apps that you use regularly, and how simple and powerful they are.  Then think about what your bank offers.  Clients expect the same kind of technological advancements from banks that they get from their social networking or music apps.  Big banks are investing a ton of money into new technology to adapt and innovate in order to keep up and compete.  If they can't meet client expectations with applications and platforms to serve complex treasury needs, they will lose clients.  And I believe smaller banks may face a different set of challenges, based on the investment required to provide state-of-the art technology.  Additionally, Fin Tech companies are making the landscape increasingly competitive by trying to entice clients to migrate their treasury payments to their platforms.   However, banks are not just looking at this as "competition" --- we are looking to work with these companies in partnership, which is a good thing for the client at the end of the day.  It's still early in the game, but pay close attention to how this plays out.

What are the innovations in behavioral modeling of deposits across the industry?

Regression analyses still play a major part of modeling deposit behavior, especially from what we see consultants offering.  The expansion of AI and machine learning are making more headway into the discussion of behavioral modeling, but we have not seen it take off completely just yet.  We are doing some internal modeling with some of our programming teams to look at attrition behavior.  There is so much data banks have to come up with algorithms to predict behavior, but we  believe they're not fully there yet to harness the data, and structure it to code and attain high confidence alerts.  Institutions need more investment dollars to build data lakes, and then feed the information into high quality programs that banks can rely on to make informed decisions.  But I would say we're getting closer to that.

What are the main challenges for increasing funding in commercial deposits?

Well, client rate is always a challenge.  Clients maintain excess balances across several banks, and some will leverage rates from one against the others to maximize returns, which makes it hard to expand existing deposit relationships.  Client rate sensitivity (or, Beta) can definitely span a wide range, so Relationship Managers and Pricing Teams need to understand that in order to optimize pricing to retain and grow deposits.  Clients are also sharing more deposits to Money Market Mutual funds these days, and some take more risk to get better returns, some pricing bank accounts out in those situations.  Nevertheless, acquisition is key, so commercial banks really need to be at the top of their game in that aspect to continually drive new money and grow the portfolio.

What would you like to achieve by attending the 7th Annual Treasury Innovation Forum?

I'd like to see some of the advancements in data modeling used for Artificial Intelligence activities.  As mentioned, we're employing some of those techniques here, and would like to hear perspective and case studies from some of the speakers.  Would also like to hear about the transition away from Libor, and the effects on managing funding returns.  Libor is used to Transfer Price bank deposits, so I'm curious about the approaches other institutions are taking to transition into a new rate structure.

Best practices for growing commercial deposits
• Reviewing data driven methods
• Client segmentation practices to enhance commercial deposits
• Examining sales tools, models and training
• CRM aides and uses for commercial deposits

For registration pricing and multiple attendee discounts, please contact:

Jeremy Wise
jeremywi@marcusevansch.com

Dennis Nykolyn will be one of our Expert Speakers!