One of the most popular articles in last week’s news roundup discussed how digital deposit marketplaces are making it easier for savers to compare CD rates nationwide. With deposit competition likely to remain strong for the foreseeable future, digital marketplaces give community banks a way to attract deposits beyond their local markets, particularly when local sources are limited.
But competitive rates may not be enough. To stand out and turn interested savers into customers, the article advises banks to offer unique CD terms, lower minimum deposits, enable easy online account opening, and ensure responsive customer service.
Have you considered how digital marketplaces could help grow deposits without putting additional pressure on margins?
In case you missed it, IntraFi’s latest quarterly survey of bank executives found that 73% of respondents expect deposit competition to increase over the next 12 months, while 87% of respondents expect funding costs to rise. Read our latest survey findings for additional insights into deposit competition, funding costs, access to capital, and much more.