Optimizing Brokered Deposit Pricing with AI-Powered Precision

Banks face significant challenges in optimizing brokered deposit pricing to align with liquidity objectives.

• Overfunding results in excess liquidity being parked in lower-yielding securities, generating a negative spread and increasing costs.

• Underfunding necessitates sharp rate increases to cover liquidity shortfalls, leading to higher funding costs on short notice.

Idrimi’s highly predictive BrokeredFlow AI model addresses these challenges by providing banks with a precise understanding of the relationship between deposit rates and projected inflows. Built on this model, our forecast simulator application (see pitch deck here) integrates upcoming maturity data to offer a clear, actionable view of both gross and net deposit flows. This enables institutions to anticipate liquidity needs, evaluate the impact of rate adjustments, and optimize pricing strategies with confidence.

Our conservative estimates indicate potential savings of 5-10 basis points per year in net interest income — equivalent to $500,000 to $1 million annually on a $1 billion brokered deposit portfolio.