New Delhi, July 9 -- As Indian savers increasingly explore mutual funds, pensions, and direct investments, among others, banks will need to leverage data science to understand depositor behaviour and tailor their products, a Boston Consulting Group (BCG) study suggests.

BCG conducted a study titled, 'Interest Rate Sensitivity in Indian Banking: An Empirical Look and its Strategic Implications', determining the effect of rate changes--specifically the repo rate and treasury bill rates--on key banking metrics- advances, deposits, and Net Interest Income (NII).

Post the study, BCG suggested India banks need to improve deposit pricing strategies and liability analytics.

Historically, the focus has been on loan analytics, but as competition...