My client (bank) currently follows a naive method to model the maturity term of chequing accounts. We need to model the maturity to correctly calculate the FTP pricing of these chequing accounts.
The method is :we look historically what is the average life of the checking account before the customer withdrew all the cash and take that average as the maturity of an active chequing account. The averages are per custoemr demographic, and also account balance bins.
How can I improve on this basic model?