Securing the Future of Bank Deposits: How Banks Can Compete for a Digital-First Customer

Deposit accounts are a critical source of secure, stable, cost-effective funding for banks and credit unions. But while financial institutions often focus on getting new individuals to sign up through marketing campaigns and offers, many new accounts are abandoned after 90 days because the value of the account is not delivered to the customer. 

While a few deactivated accounts may not be enough to influence the bank or credit union’s financial future, a substantial decrease in deposit volumes impacts the bottom line, leading to difficult operational decisions. In some cases, this could mean not being able to expand to serve a wider market, and in extreme cases, it could destabilize the institution in a way that is troublesome to recover from. 

Banks spend $200 to acquire a deposit account or $400 for a credit card, only to see these customers abandon the setup process due to a poor onboarding experience not geared towards customer needs. 

To secure new customers and create lifelong, active clients, banks and credit unions must entice depositors with appealing offers while creating immediate value and usability for clients the moment after they open an account. It is imperative to ensure customers don’t have to navigate difficult processes or even think they will have to. Customers want a seamless, frictionless experience across mobile, online, and in-branch channels.  

Getting them in the door 

Providing clients with sign-up perks, like free checking accounts and increased cashback offers, can help to attract new clients. However, all that excitement evaporates the second the prospective customer is forced into a tedious, repetitive, or otherwise subpar onboarding process, causing them to lose interest and abandon the service altogether.

Keeping users connected—even when they’re not

People have busy lives. And few want to spend unnecessary time interacting with their bank or credit union. Instead, institutions must enable clients to stay active with their accounts with minimal or no manual intervention required. And when action is required, customers should be able to easily handle basic functions on their own, with automation increasingly handling more of the back-end work. 

Customers want immediate, hassle-free access, which means: 

• Instant access to funds upon deposit,

• Compatibility with Apple or Google Pay,

• Simple activation of direct deposits with incentives for ongoing engagement,

• Personalized financial insights and relevant product suggestions.

Once a consumer trusts the banking app, enabling recurring payments should be quick and painless. Banks can boost engagement by offering bonuses for consistent direct deposits or tailored offers for high contributors.

Personalization is key: rather than mass emails, individualized messages with tailored financial advice better foster engagement. Ongoing follow-ups through push notifications, SMS, and email help retain customer interest.

To support this, banks and credit unions need a unified technology platform that consolidates customer data, enabling seamless, personalized interactions through live chat, AI-driven digital assistants, and actionable insights in natural language. 

Make it convenient—or a competitor will 

In today’s competitive landscape, every customer interaction is an opportunity to strengthen or weaken the relationship. Fintechs can open accounts in minutes and offer conveniences like Apple Pay; banks that lack these features risk losing activity and, furthermore, lose that competitive edge. 

Thanks to the broader move to a digital world, consumers can now easily compare digital banking experiences, and many banks struggle with disjointed systems that require clients to log into multiple platforms or re-enter information. To solve this, banks need a unified technology platform to streamline customer interactions and deepen relationships, ultimately increasing deposit volumes. 

Banks and credit unions that embrace a digital transformation and provide a unified platform will not only attract new clients but also build deeper, more meaningful relationships, supporting faster, sustainable growth. Modernizing their deposit strategy is the first step in the right direction.