3 Strategies to Grow Consumer Deposits in 2024
Like many businesses across the US, community and regional banks face challenges stemming from economic fluctuations, regulatory reforms, and shifting consumer preferences. To navigate these headwinds, they’re leveraging their unique strengths, such as personalized customer interactions and local market insights.
In 2024, one of the most critical priorities for community and regional banks is growing their consumer deposits. Strong deposits growth is a key pillar for sustained growth in the banking sector, as deposits offer a stable foundation for cross and upsell opportunities, and allow banks to maintain liquidity, meet customer loan demand, generate healthy interest income, and boost their market reputation.
But how can banks ensure a steady growth in consumer deposits in today's dynamic and competitive environment?
In nCino’s recent webinar, Deposits Strategies: Tactics to Grow Consumer Deposits in 2024, Marc Yrsha, Chief Banking Officer of Arrow Financial Corporation, and Law Helie, Executive Director – Consumer Banking at nCino, discussed this topic, and offered the following strategies:
Banks must recognize the importance of personalized customer relationships and local market knowledge. Many customers still value a human touch, and institutions like Arrow Financial Corporation are keen to leverage this through enhanced customer experience and internal professional development programs for their team. The idea is to understand and meet the customer's needs better, thereby fostering a culture of continuous improvement.
Focusing on younger customers such as high school and college students and leveraging life events like new home purchases is another effective way to drive consumer deposit discussions. Targeting this demographic with a strong digital strategy allows banks to align with the preferences of the modern customer, who tend to prefer banking on their terms, when and wherever they want.
Regulatory changes, although challenging, can open new doors of possibilities for banks. They can leverage these changes to drive innovation and operational efficiency, positioning themselves for long-term success. The bank failures of 2023 have underscored the importance of educating customers about banking mechanisms like FDIC coverage, insured deposits, and other protective measures. Institutions that can navigate these regulatory requirements while maintaining strong customer relationships will certainly gain a competitive advantage.
For Arrow Financial, the partnership with nCino has proven incredibly valuable by helping the community bank implement a consumer-focused digital strategy, including features like digital account opening. Considering the increased regulatory scrutiny and the growing expansion of credit unions, banks are diversifying their strategies to stay relevant and competitive. Some of these strategies include exploring additional business lines, tapping into non-interest income, and even considering M&A activities.
Customers want a digital experience, so if we aren’t allowing it, they are going elsewhere.
– Marc Yrsha, Chief Banking Officer, Arrow Financial Corporation
nCino continues to enhance our Consumer Banking Solution to further empower community and regional banks and credit unions to grow deposits, improve efficiencies, and elevate client experiences. Key upgrades include:
Expanded omnichannel functionality for a seamless application process.
Simplified multi-product origination experience for operational efficiency.
More robust headless APIs for cost-effective integration.
Embedded analytics and Intelligent Cross-Sell for data-driven insights.
Indirect lending functionality to enhance product offerings.
Achieving consumer deposit growth demands a holistic and long-term perspective, and this webinar underscored the multifaceted approach necessary for consumer deposit growth in 2024, highlighting the power of technology, regulatory compliance, and customer engagement.
Watch the on-demand webinar now.
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