Two households each hold $10,000 with your institution.
For the first household, modeled total household deposits are approximately $12,000. Your institution holds about 83% of that household’s deposits.
For the second, modeled total household deposits are approximately $200,000. Your institution holds about 5%.
The balances are identical. Your position within each relationship is very different.
One looks like a well-established deposit relationship. The other looks like a small foothold in a much larger financial picture. A standard balance report places them side by side, but they should not carry the same meaning in a discussion about relationship strength, branch performance, or growth strategy.
Modeled total household deposits estimate the household’s full deposit position, including the balance already held with your institution. The values are directional rather than verified balances at another financial institution. They provide context for comparison, prioritization, and planning.
The first article in this series described the standard for useful segmentation. The second explored Decision Orientation and the different ways households build confidence around a financial decision.
This article turns to the other major dimension of the NEXT Framework: Financial Capacity.
Your data shows the relationship you have
Community banks and credit unions already know a great deal about the households they serve.
Your core, CRM, MCIF, and data warehouse can show balances, products, transactions, tenure, channel use, service history, and campaign response. That information is accurate about what is going on inside your institution, incredibly valuable, and it’s critical to have your arms around it. But… it’s not the whole story.
A household may use your institution for checking and daily transactions while keeping most of its savings elsewhere. Another may keep most of its deposits with you while using another provider for lending, investments, or financial advice.
Your internal data records both relationships accurately, but it can’t show the broader household position around them.
Financial Capacity adds modeled deposits, investments, investable assets, and related economic signals to the household record. For this discussion, the focus is modeled total household deposits.
The two views work together. First-party data shows the relationship you hold. Modeled household data adds context around the relationship. Once those views are combined, you can move beyond the balance and begin to assess your position with the household.
Share of wallet shows relationship depth
Share of wallet compares the deposits held with your institution with modeled total household deposits.
In plain terms, it answers a useful question:
How much of this household’s modeled deposit relationship do we hold?
For the two households in the opening example, the answer is about 83% and 5%.
That difference turns share of wallet into a useful relationship KPI. It helps distinguish a large balance from a strong deposit position. It also gives leadership a consistent way to compare relationships that may look similar inside the core but represent very different levels of economic depth.
Share of wallet can sit alongside direct deposit, transaction activity, product breadth, tenure, and engagement. Those first-party measures help show the role your institution plays in the household’s day-to-day financial life. Share of wallet adds a view of the household’s broader deposit position.
It can strengthen your assessment of whether you hold the primary deposit relationship. PFI status still requires a wider view of how the household transacts, which products it uses, how often it engages, and where it turns for advice.
The value of share of wallet comes from improving the question. Instead of asking only how large the current balance is, you can ask how strong your position is within the relationship.
The same view changes how you read a market
The same question can be carried from one household to a ZIP, branch market, trade area, or full footprint.
At the household level, share of wallet shows your position within a current relationship.
Across a market, two measures help show whether that relationship strength is adding up to a strong local position.
Household penetration measures the percentage of households in a defined market that have a relationship with your institution.
Modeled deposit share measures the deposits you hold from households in that market as a percentage of modeled total household deposits across the entire market, including households you do not serve.
Household penetration tells you how broadly you reach the market. Modeled deposit share shows how much of the market’s household deposit opportunity you hold.
Consider an illustrative ZIP where an institution serves 5.6% of households but holds 1.9% of modeled total household deposits.
The institution has established household reach. That reach has not translated into an equivalent deposit position.
The comparison gives leadership a more useful place to begin. Are current relationships as deep as they could be? Is the institution reaching the parts of the market where deposit capacity is concentrated? Should the next growth investment focus on adding households, expanding current relationships, or both?
Answering those questions requires a closer look at the households being served and the depth of those relationships. The gap can reflect the composition of the current household base, limited share of wallet within that base, or a combination.
The reverse pattern can also occur. An institution may serve a relatively small percentage of households while holding a larger share of modeled deposits. That can reflect deeper relationships, greater concentration among higher-capacity households, or both.
Neither pattern is necessarily right or wrong, but it’s critical information help leadership identify the question that needs to be answered before money, banker capacity, or marketing resources are committed.
What changes for a financial institution
Financial Capacity changes the sequence of the growth discussion. Start with your position, then decide what action fits.
Relationship strategy. You can separate households where a substantial balance also represents a strong deposit position from those where the same balance represents a small part of a larger modeled relationship. That creates a clearer view of where relationships are already deep and where further attention could be warranted.
Branch and market performance. Two branches may hold similar deposit totals for very different reasons. One may serve more households with smaller deposit relationships. Another may serve fewer households while holding a greater share of the deposits within those relationships. The totals match, but the underlying positions call for different strategies.
Resource allocation. Comparing relationship depth, household penetration, and modeled deposit share gives leadership better context before choosing between acquisition, relationship expansion, banker outreach, branch investment, or broader market development.
Deposit growth is one practical use. A household with substantial modeled total household deposits and a relatively small share held by your institution can receive closer analysis alongside product ownership, behavior, propensity, geography, and banker knowledge.
That same view can support branch reviews, market planning, relationship-manager priorities, budgeting, and discussions about where future growth should come from.
The analysis should improve the decision before it shapes the campaign.
Seeing more behind the balance
The two households still hold the same $10,000.
In one case, your institution holds about 83% of modeled total household deposits. In the other, it holds about 5%.
Your core records both balances correctly. Financial Capacity shows what each balance represents within the larger household picture.
At the household level, share of wallet gives you a clearer measure of relationship depth. Across a market, household penetration and modeled deposit share show whether household reach is translating into economic position.
Within NEXT, Financial Capacity places households into modeled capacity tiers. In the next article, we will show how those tiers combine with Decision Orientation in the full 13-segment framework—and how the complete framework supports decisions about priority, product, message, and market focus.
Look at the next balance report that reaches your desk. Can it distinguish a deep deposit relationship from a large balance? Can it show whether household reach in a branch market is translating into deposit position?
If it can’t, the numbers are accurate, but the strategic picture remains incomplete.
Analytic Marketing combines first-party household deposits with modeled total household deposits to estimate share of wallet across current relationships. The same household foundation can be aggregated across a defined market to compare household penetration with modeled deposit share.