Q2 Insights Digital - Flipbook - Page 3
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With respect to your bank, which five risk categories are you most
concerned about for 2025?
Respondents were asked to select no more than five options.
CONTENT
able, payments or cash flow — and they
want that without leaving their bank’s
ecosystem.”
Source: Bank Director’s 2025 Risk Survey; selected responses included
84%
Cybersecurity
69%
Fraud
43%
Compliance
37%
Liquidity
Tailored Tools, Tighter
Relationships
Texas Security Bank has leaned into
this idea by embedding fintech directly
into its digital banking platform. Working
with Q2, the bank created a suite of tools
for business customers, including invoic-
58%
31%
Strategic
sub-ledger tools and cash flow alerts.
55%
23%
app, offering flexibility and personaliza-
Interest rate risk
Regulatory
51%
Credit
Operational
6%
Reputational
ing and click-to-pay capabilities, escrow
The tools are accessible from a single
tion — key ingredients for holding onto
deposit relationships. At the heart of this
strategy is the idea that a core deposit is
no longer just a transactional account.
It’s a gateway into developing a broader
relationship with the client.
“Every business owner is different,”
says Cass. “So, we give them a range of
options. They can choose the tools that
Why Digital Access Isn’t Enough
“It’s not just about giving customers
more products,” says Shon Cass, chief
ing to Bank Director’s 2025 Risk Survey
named liquidity as a top concern.
This underscores that it’s untenable to
experience officer at Texas Security Bank,
solely compete on interest rates to build
the $1.2 billion subsidiary of Texas Securi-
long-term loyalty.
ty Bankshares in Dallas. “It’s about giving
them the right tools to run their business
more efficiently. If you do that, they have
no reason to go anywhere else.”
Banks learned a hard lesson in how
“At the core of sticky deposits is still a
relationship,” Coleman says.
The industry is also facing a generational shift. Business owners — especially
younger ones — increasingly expect their
easily customers can move their money in
bank to deliver the same seamless digital
the spring of 2023, when three regional
experience they receive as consumers. But
banks suffered a significant outflow of
a significant number of banks aren’t of-
deposits and eventually failed. Since then,
fering services that could ease the lives of
the cost of deposits has increased as inter-
their business customers. For instance, 27%
est rates have remained elevated, leading
of respondents to Bank Director’s 2024
banks to compete on rates to keep custom-
Technology Survey said their bank offers
ers. In the fourth quarter of 2024, the cost
payroll services to small-business custom-
of deposits at community banks increased
ers. Less than a quarter said they offer ac-
23 basis points from a year earlier, accord-
counts receivable capabilities, and 17% said
ing to the Federal Deposit Insurance Corp.
they provide cash flow accounting.
Even this year, liquidity remained a
“Mobile and online banking are table
top priority for a significant number of
stakes today,” says Cass. “Having access
bankers. Thirty-seven percent of senior
isn’t enough. Customers also need tools
executives and board members respond-
that help them manage accounts receiv-
fit their workflow and their needs. That’s
what builds value and stickiness.”
That’s where platform-based banking,
with embedded fintech and an ability to
gather customer data in real time, can
offer an advantage. Real-time insights
into where deposits go when they leave a
client’s account — whether toward wealth
management providers, crypto wallets or
other external financial services — offer
banks a new lever for proactively serving
customers. Armed with this knowledge,
banks could tailor more products and services to keep those funds from leaving.
Retention also requires patience, which
may mean onboarding slowly, but with
intentionality. Once a customer is in the
fold, cross-selling and advisory engagement are vital. As Cass points out, business owners still crave relationships — not
to complete transactions, but to gain
advice, education and peace of mind.
“If it’s a relationship-led account, you
have to move at the speed of the customer,” says Coleman.
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