March 07, 2016 15:33 ET

The Importance of Pricing Methodologies in Retail Deposits

Interview With Warren Van Orman, Vice President, Finance, Mountain View Credit Union

TORONTO, ON--(Marketwired - March 07, 2016) - The increased focus of regulators on liquidity, mean retail deposits are still a key product for financial institutions in North America. However, the unpredictable interest rate environment and increased customer awareness mean that institutions need to develop new strategies to attract new clients, whilst still maintaining their existing client base. Financial institutions need to optimize their deposit strategies to ensure strong returns, while remaining compliant in the current regulatory environment.

Mr. Warren Van Orman, Vice President, Finance at Mountain View Credit Union, recently spoke with GFMI about key topics to be discussed at their 2nd Annual Retail Deposit Optimization and Strategic Management Canada Conference, April 18-20, 2016 in Toronto, ON, Canada.

Why is it vital for institutions to differentiate their retail deposit products and pricing from competitors?

WVO: In absence of differentiation, pricing becomes the most effective and expensive way to attract customers. Differentiation allows the institution to appeal to the customer's desire for individualized service, and if done effectively results in a stickier relationship with a lower ultimate cost.

How is pricing being used to attract and retain customers?

WVO: Pricing is one of the most effective tools to attract and retain customers. Unfortunately, it comes at a very high cost and attracts the most agile and price sensitive customers. Offering the best pricing on both sides of the balance sheet requires extreme efficiency of operations and is nearly impossible when competing with boutique and monoline financial institutions.

What are the challenges when determining the best pricing methodologies?

WVO: Changes in pricing methodologies results in a transition of the existing book of business: ideally an influx of new business, and probably a response from entrenched competitors. Understanding and predicting the confluence of customer behavior and competitor response is one of the biggest challenges of pricing and designing products.

What do you think people will gain from attending this event?

WVO: Attendees will gather a wide point of view from institutions of varying sizes with different strategic focuses. They will gain a greater appreciation from the great depth of knowledge that the presenters and fellow participants bring.

The 2nd Annual Retail Deposit Optimization and Strategic Management Canada Conference will follow its predecessors to help institutions optimize their deposit strategies to best attract and retain customers. Case study presentations and panel discussions will discuss the best strategies to effectively price deposits to comply with liquidity regulations, whilst still appealing to customers. Delegates will leave the meeting understanding the use of data to aid with product innovation and marketing strategy and effective use of distribution channels to attract clients.

For more information, please click here to download the conference agenda or contact Rachel Strug, Digital Marketing Coordinator, GFMI, at 312-894-6327 or

About Warren Van Orman
Warren Van Orman, Vice President, Finance, joined Mountain View Credit Union in February 2010. Warren's credentials include successful completion of a Master of Accounting program, as well as Chartered Accountant and Canadian Securities Course designations. He has supplemented his work for Big 4 accounting firms in audit and advisory roles with 10 years experience in the credit union industry in progressively senior roles. Prior to coming to Mountain View, Warren was the Director, Accounting Operations for a credit union with $10 billion in assets. Warren's current role includes leadership of all finance, accounting, financial reporting and enterprise risk management functions.

About Global Financial Markets Intelligence
GFMI is a specialized provider of content-led conferences for the financial markets. Carefully researched with leading financial market experts, our focused quality events deliver key bottom-line value through targeted presentations, interactive discussions and high-level networking opportunities.

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