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Tuesday Topic: Deposit Statistics Can Deceive

Tuesday Topic: Deposit Statistics Can Deceive
Jul 15, 2025 4:18:17 PM
​Thanks Barb,

This is the actual reply I made to the reporter's inquiry...

Andy,
I don't have the answer to the top X factors that cause millions of consumers, businesses, non-profits, and government entities to choose their current depository.  What I can say is that it is easy to see why people would consider the mega banks as the default choice.  They are often seen as...
- Investing more in technology to make banking easy and convenient
- Having momentum
- Visible - in other words they literally are "seen"
- The best choice to handle all my financial needs throughout a lifetime
- Too big to fail
So, even though smaller banks may be viewed favorably in many ways, are the differences that are beneficial worth the effort?
Without a clear articulation of the benefits from working with our community bank that has...
- Custom made flexible products
- Expedited processes
- Professionally engaged people
- A team that has prepared with the best tools to analyze the depositor's options
- Competitive pricing
- Efficiently and effectively promoted offerings
...The market is left with a "me-too" community bank option where many may say the "juice is not worth the squeeze"; it is not enough motivation to switch.  In some cases, it may not even be enough to stay if the depositors are taken for granted by the bankers.  
How many community bankers know their top deposit clients and more importantly, how many of those top clients can comfortably reach out to their bank's executives?
I hope this provides some value.
Neil


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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 10-02-2018 08:45
From: Barb Rehm
Subject: Tuesday Topic: Deposit Statistics Can Deceive

"Banks with less than $10 billion of assets are losing the deposit war, even as many continue to raise rates on savings accounts and certificates of deposit to try to keep pace with their larger rivals." That's the first paragraph of a recent American Banker article that cites FDIC data showing deposit totals fell 3%, to $2.37 trillion, at banks with less than $10 billion in assets over the year ending June 30. Deposits increased 6%, to $9.9 trillion, for banks with more than $10 billion in assets. There is no denying the deposit market is increasingly competitive, but a reader posted a comment on this story that deserves attention. It reads, in part: "[T]he statistic cited for growth (shrinkage) in the under $10 billion bank segment fails to mention that the number of such banks declined by 245, while banks above $10 billion grew by 14… A much more accurate measure would be on a 'same bank' basis." Factoring in the change in the total number of banks, the commenter said, deposits held by the under $10B banks grew 1.39% while falling 6.6% at the over $10B banks.

 

Regardless of the overall trends, a Peer Intelligence member - @Neil Stanley of TS Banking Group - is quoted in the story with this advice: smaller banks need to give consumers compelling reasons to switch from larger banks that have vast branch and ATM networks and more sophisticated mobile banking technology. And just a note about this week… all the federal regulators are testifying on regulatory relief efforts before the Senate Banking Committee Tuesday. It may shed light on how the agencies plan to implement the Economic Growth, Regulatory Relief, and Consumer Protection Act.  



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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
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