Deposit/Credit Products

As banks consolidate—a fact of life since the financial crisis—they also feel pressure from non-bank competitors to get leaner, more efficient and bolster customer experience.

As interest rates rise and financial institutions face mounting pressure to fund lending with a reasonable cost of capital, acquiring new core deposits and customers affordably is paramount.

Perhaps you’ve seen ads for “Mortgage approvals in minutes!” just by using a mobile phone.

For years, community and regional banks tossed proverbial pebbles to gain deposits as Goliath-like megabanks rolled out massive marketing campaigns.

While no two banking customers are exactly alike, financial institutions often treat them the same way—and at a cost.

We’re not saying that customers these days are lazy.

Call it the slowwwwww squeeeeeeze: Competition for deposits has produced tremendous force—the kind steamroller drivers would envy—as big banks, fintechs and smaller banks feel the pressure to collect the money they badly need to fund loans.

As banks and fintech providers compete to out-innovate each other at every turn—with similar upgrades and incentives to win the same customers—financial institutions can be tempted to add products.

It’s no secret that the digerati are taking bites out of the banking sector—offering payment services, loans and credit, cash, and savings products to the underbanked.

Bankers invest so much time and attention toward driving “share of wallet” (SoW) that many tend to treat it as the de facto metric for measuring return on investment (ROI) in digital technology.