Banking can now increase their deposits while lowering their interest expense.

For the first time ever community banks and credit unions are diversifying the funding sources of their interest expense. Up until recently, 100% of all interest expense, including base and high-yield rates, was changed against Net Interest Margin (NIM). But now institutions use interest expense to fund the base rate of deposits and use incentive programs, such as Scientifically Predictable, in lieu of paying high-yield rates.

Using interest expense (cash) to pay only for the base rate of deposits, and Scientifically Predictable (incentive program) to cover high yield rates, instantly improves the NIM of community banks and credit unions by lowering their interest expense. Currently, the national average of NIM for banks and credit unions is about 2.95%. ?Eliminating the need to pay high-yield rates with interest expense will instantly increase the national average NIM to 3.5% or greater. Hence, instantly improving the profitability of the institution.

Scientifically Predictable is a self-investing program that is based on a validated and published scientific study:? “Money Anxiety Theory - a Predictor of Equity’s Performance,” which makes it very attractive to customers and members. The study shows that by simply following the five-projected ETFs, self-investing customers or members can outperform the market with an extremely high level of confidence. Additionally, the study shows that the ability to outperform the market occurs during bear or bull market alike.

The program is extremely easy to implement. Instead of offering expense high-yield rates for your deposits, simply offer the base rate plus the Scientifically Predictable program as an incentive to make a deposit. Thus, your customers or members will be able to experience a greater-than-market return, which in full-year 2024 returned 29.7% with an alpha of 6.4%. At the same time, you are getting new deposits at zero interest expense and a satisfied and loyal customer.