Analyzing Financial Health, Customer Value, and Operational Drivers in Retail Banking

Problem Statement / Goal:
This analysis examines a decade of retail banking data (2013–2023) to evaluate the institution's financial health, customer behavior patterns, and operational efficiency. The goal is to identify opportunities to strengthen liquidity, improve customer retention strategies, and optimize the balance between deposits and withdrawals for sustainable growth.

Key Insights:
✪ Narrow Net Margin: While Total Assets are high ($2,428,290), the Net Transaction Flow is remarkably tight at only $4,746. This indicates that nearly all incoming deposits are being offset by withdrawals, leaving very little retained liquidity from active transactions.
✪ Growth Deceleration in 2023: The "Growth Engine" chart reveals a worrying trend. After a strong 2022 ($15,994 in deposits), 2023 has plummeted to just $349. Even accounting for a partial year, this represents a significant cooling of new capital inflow.
✪ Operational "Power Users": A small group of customers drive a disproportionate amount of activity. Laura Hammond, for instance, shows high withdrawal frequency compared to zero deposits, suggesting she is a "drain" on current liquidity.
✪ Perfect Liquidity Balance: The institution maintains an almost exact 50/50 split between Savings ($1.18M) and Checking ($1.24M). While balanced, it suggests a lack of incentive for customers to move "lazy" checking cash into higher-yield savings vehicles.

Recommendations:
✪ Retention of High-Value Depositors: Prioritize "Power Users" who have high deposit-to-withdrawal ratios with premium loyalty rewards to stabilize the net transaction flow.
✪ Investigate the 2023 Slump: Conduct a cohort analysis to determine if the deposit drop is due to external market conditions or a specific segment of customers churning.
✪ Incentivize Long-term Savings: Launch a campaign to transition checking balances into long-term CDs or high-yield accounts to improve the bank's capital stickiness.
✪ Review High-Withdrawal Accounts: Engage customers like Laura Hammond to understand their withdrawal patterns and potentially offer wealth management services to retain their assets.

To learn more about this project, click the view report button.