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With rising deposit costs, competitive rates, and economic shifts, banks face pressure to boost liquidity and sustain lending capacity. As you move through another year of strategic planning, one question remains: How will you strengthen your deposit growth strategy?
The trend of declining deposits, which began in 2022, has continued into 2023 and 2024, making it a top priority for many financial institutions. As interest rates have fluctuated, recent drops have provided some relief, easing the pressure of high deposit costs. However, two-thirds of banking executives still expect overall high interest rates to persist in the foreseeable future. This creates a dynamic where deposit growth remains elusive, as consumers seek the best yields available.
Here are two key strategies your bank can implement to strengthen deposit growth.
1. Maximize your use of technology to build trust, loyalty, and deposits.
Implementing technology is one thing, but truly operationalizing it to enhance your customer experience is where magic can happen.
Let’s start at the beginning: your account opening experience. To drive deposit growth, it’s crucial to make it easy for customers to open accounts—while still prioritizing the security of the deposits you already have. The key is creating a process that strikes the perfect balance between convenience and security. By combining automated account opening with advanced fraud protection, you can create a seamless experience that reduces abandonment rates and accelerates customer acquisition and retention—three key drivers of deposit growth.
So, how can your bank incorporate these elements into your deposit growth strategy? MeridianLink® can help.
First, our digital platform is designed to make account opening easier so you can boost your deposit volumes. With a user-friendly, fully digital interface, customers can open demand deposit accounts in under four minutes, whether in-branch or online. Automation speeds things up at every step—from submitting documents to verification—ensuring a smooth experience for customers and staff. This efficiency helps your bank process applications quicker, reduce errors, and enhance the overall experience from start to finish.
Next, customers have access to MeridianLink® Marketplace, a powerful network of trusted integrations, including AI-powered identity verification and fraud detection. These partner solutions can enhance your account opening process by integrating advanced security tools that protect your customers throughout their entire journey. As fraud tactics evolve, relying on outdated, manual processes is no longer sufficient. These advanced tools work in real-time, spotting suspicious activity as it happens, speeding up verification, streamlining workflows, and reducing your team’s manual effort.
2. Increase your share-of-wallet for more deposit growth potential.
Now we’re going to shift our focus from acquiring new customers to deepening relationships with your current customers. While acquiring new customers is vital, nurturing existing relationships boosts retention, lowers costs, and drives deposit growth effectively.
Consumers report having relationships with an average of 3.3 financial institutions and maintaining 4.4 accounts per household. Yet only 2.9 of these accounts are held with their primary financial institution. This presents a clear opportunity. Every touchpoint with your customers is a chance to strengthen your relationship and drive growth. But how can you make the most of these moments? With the right tools to support your efforts, you can transform everyday interactions into meaningful growth for your bank.
MeridianLink’s digital platform provides direct access to valuable customer insights throughout the financial journey. This enables you to uncover new revenue streams and better serve existing customers. By leveraging insights from credit reports and applications, you can boost cross-selling success, attract new business with timely campaigns, and focus your marketing on high-potential customers. Plus, our platform helps you measure the impact of your efforts, so you can continuously refine your strategy and build long-term loyalty.
With this level of service, customers will trust you to protect their assets, knowing you’ve been there at every step.
So, how will your bank strengthen its deposit growth strategy? Use these insights to spark valuable discussions and set your bank on the right path.
