3 Strategies to Grow Consumer Deposits in 2025
Like many businesses across the U.S., 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, and implementing innovative technologies like the nCino Consumer Banking Solution.
In 2024, one of the most critical priorities for community and regional banks was growing their consumer deposits. Strong deposits growth is a key pillar for sustained success in the banking sector. 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 2025?
In nCino’s 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, proposing strategies that apply to 2025’s dynamic and competitive environment.
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.
Tools like the nCino Consumer Banking Solution enable institutions to take this approach further by streamlining key processes. The ability to reduce the time for online deposit account opening to under five minutes allows banks to meet customer expectations for speed and convenience without sacrificing personal engagement.
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.
The nCino Consumer Banking Solution empowers banks to meet these digital-first expectations by delivering results efficiently. With this solution, banks can provide loan approvals in under one hour, ensuring that customers receive fast, seamless service. By combining speed with a focus on customer convenience, banks can create meaningful connections with younger customers while fostering loyalty through tailored, responsive banking experiences.
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. 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 solutions to further empower community and regional banks and credit unions to grow deposits, improve efficiencies, and elevate client experiences. By streamlining and automating previously disjointed systems with the nCino Consumer Banking Solution, banks can drive a 288% increase in completed online applications, establishing real operational efficiency and boosting customer satisfaction.
Achieving consumer deposit growth demands a holistic and long-term perspective. Implementing these strategies will lead to consumer deposit growth in 2025, highlighting the power of technology, regulatory compliance, and customer engagement.
Watch the on-demand webinar now.
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