Q2 Insights Digital - Flipbook - Page 2
STICKY DEPOSITS
INSIGHTS
K EY ME TR ICS
Which of the following best
describes your expectations for
how core deposits at your bank
will move in 2025?
Source: Bank Director’s 2025
Risk Survey
5%
56%
8%
32%
To attract and retain core deposits, banks can’t rely on competing on pricing
alone. Instead, institutions need to tailor their product offerings to the specific
business segments they are looking to reach. This will help build long-term
loyalty.
Core deposits will
moderately increase
Core deposits will
decline
Core deposits will
remain stable
Core deposits will
significantly increase
After a turbulent period for liquidity, community banks are placing
KEY TAKEAWAYS
renewed focus on the durability of their funding base. For banks looking to
attract and retain core deposits, the challenge is no longer just about rates —
• Sticky deposits start with segmentation,
not pricing. Banks must align tools and
services with the real needs of their
target customer base.
• Embedding fintech into core platforms
gives banks a way to create personalized,
high-utility environments for commercial
clients — reducing churn.
• The deposit strategy should be evaluated
across the full lifecycle, from onboarding
to cross-selling to behavior monitoring.
• Community banks can gain an edge by
focusing on deepening relationships
with commercial customers — all while
delivering modern digital experiences.
it’s about relevance.
In today’s competitive environment, “sticky deposits” are not the byproduct
of customer inertia or a business owner living near a branch. Instead, they’re
increasingly the result of a bank’s strategic segmentation and digital capabilities. Customers are looking for smarter banking experiences, and banks need
to step up to meet these expectations.
That requires rethinking the one-size-fits-all model banks have traditionally
offered. Community banks need to take what they already do well — providing high-touch relationship management — and incorporate more customer
insights to better tailor products and services for their clients.
“Banks need to stop chasing deposits broadly and instead build products for
the segments they’re best positioned to serve,” says Kirk Coleman, president of
Q2, a digital banking provider.
To achieve this, banks must know the types of businesses they want to reach
— such as title companies, logistics firms or homeowners associations — and
tailor their operational strategy, not just their product catalog, to fit the individual needs of each segment.
“The banks that win are the ones that build their own” community, Coleman
says, “They don’t just add a product; they build a full-service ecosystem for a
specific customer set.”
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