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deposits
Whitepapers
Jan 24, 2024
How community financial institutions can maximize their relationships and compete in the deposit rate environment using profitability analysis and relationship modeling.
Mar 20, 2024
Is getting into an interest-rate war the only way for CFIs to compete for deposits at higher interest rates? We review alternative strategies for keeping up with aggressive offers from online banks and other competitors.
Dec 3, 2024
Over the past year, the financial sector has witnessed many disruptive forces. In a three-part series, we review the challenges CFIs have faced and how they have responded.
Nov 26, 2024
The FDIC’s Deposit Insurance Fund’s reserve ratio is on track to reach the statutory minimum of 1.35% by 2026 — two years ahead of schedule. We discuss the impact on community banks.
Nov 18, 2024
The FDIC is proposing a rule that would change the definition of “deposit broker” and expand the types of exceptions allowed. We outline how the proposed rule could significantly impact banking operations.
Oct 15, 2024
BAI recently hosted a webinar featuring insights on current trends and projections for small business deposit growth. We look at some of the key information from the webinar.
Sep 24, 2024
After the first interest-rate cut in over a year, we look at the outlook for deposit costs and offer five strategies for CFIs to maximize the opportunities in this uncertain environment.
Jul 2, 2024
As interest rates remain high, the battle for healthy deposits continues. We look at what else CFIs can do for their consumer and commercial customers, aside from chasing high rates, to attract and retain deposits.
Mar 14, 2024
For banks, the big three issues for 2024 are deposit growth, customer acquisition, and digital enhancement. Those three are perennial list toppers. We discuss why that is and how 2024 will shape your approach to meeting those priorities.
Dec 28, 2023
As we continue down memory lane, we revisit this June 6 article on deposits: When it comes to deposit stickiness, finding creative new ways to serve your customers and build their loyalty can help keep your customers.
Dec 5, 2023
Over the past year, the financial sector has had to navigate many disruptive forces. In two back-to-back articles, we look at the challenges faced by CFIs and the opportunities that have emerged during 2023. In this first article, we explore how CFIs have responded to economic uncertainty and inflation, intensified competition for deposits, and shaken consumer confidence in the banking industry.
Sep 6, 2023
The FDIC has published a report outlining three possible options for deposit insurance reform — maintaining or increasing limited coverage for all depositors; implementing unlimited coverage for all depositors; or implementing targeted coverage for businesses. We provide details of the FDIC’s analysis of all three options.
Aug 1, 2023
As financial institutions strive to identify deposit rates to help them remain competitive and profitable, customer profitability modeling offers greater transparency regarding when higher deposit rates do and do not make sense for banks’ bottom lines.
Jun 6, 2023
An average customer can probably walk away from their current banking relationship and find another that will pay them a higher interest rate on deposits. But average customers are largely not walking away from their existing banking relationships. We discuss why customers stay put and how to use those reasons to your advantage.
May 16, 2023
Deposit drains, rising interest rates, and tougher times for business loans put pressure on CFIs’ bottom lines. Profits promise to be tougher to generate in 2023. We review the current state of deposit growth.
Apr 19, 2023
Loan-to-deposit ratios rose throughout 2022, with average CFI rates nearing 80%. Banks are also borrowing more from alternative sources to make up for lagging deposit growth.
Oct 27, 2021
CFOs at community financial institutions have their hands full now more than ever — low loan demand, an overflow of deposits, margin pressure, potential credit quality issues, and more. To give you some food for thought on how other institutions are handling these challenges, we share a few stories from your CFO peers.
Mar 31, 2021
Financial institutions are awash in cash these days. How long will this situation last and what is a banker to do about it? We cover the economic indicators affecting liquidity, such as inflation and employment, and how to manage the effects of inflation with revenue protection.
May 10, 2019
For many consumers -- millennials in particular -- setting aside large sums of money to meet savings goals can be tricky. One savings app is taking a new approach and community banks should be aware.
Jul 9, 2019
In our third "Inquiry and Insight" issue, we share more interesting questions from our readers and provide relevant and insightful answers.
Jan 5, 2022
The hike in inflation to 6.8% in November and the arrival of the Omicron variant have applied pressure for the Federal Reserve to increase interest rates. What will this do to deposits? While rates are still low, it’s critical for community financial institutions to retain their customers and their position as primary bank. Here are some tips to help increase customer stickiness.
Apr 14, 2022
Minority-owned businesses play an increasingly important role in the US economy, generating $1.7T in revenue and providing more than 8.9MM jobs. Yet many are still finding it tough to access finance to grow and expand. Recently, the government increased its efforts to improve the situation. Here are five efforts that community financial institutions can do to help address this challenge.
Feb 22, 2021
Savings rates soared to a high of 33.7% in April of last year. While we are still waiting for a full recovery and more normalized savings rates, you will want to proactively plan to retain deposits for when that time comes. To get you started, we lay out some ways to do this with savings-as-a-service and savings apps, whether in-house or through a partnership.
Mar 6, 2020
The competition for deposits is fierce, as fintechs and big tech enter an already crowded space. There are many ways to compete here, so we thought we could provide you with some suggestions.
Oct 7, 2019
Bank-at-work programs allow busy customers or prospects to easily engage with your financial experts during work hours. Is this something for your bank?
Jul 26, 2019
Community banks should be among the beneficiaries of a rule change impacting how the biggest banks calculate their adherence to Liquidity Coverage Ratios, We give you an update.
Jun 27, 2019
No matter your bank's situation, there are still some ways to hunt and win valuable deposit customers.
Jun 3, 2019
Although the top five American banks control most of the US market for deposits, there are still things community banks can do - even without raising rates or decreasing lending.
Mar 14, 2019
Fifty-eight percent of bankers surveyed last year said they expect to begin using or increasing their use of reciprocal deposits promptly, due to the new S.2155 law provisions. We break down the details for you.
Feb 21, 2019
A tough trend facing community banks in 2019 is the loan vs. deposit funding and NIM squeeze. Are you ready for this challenge?
Mar 30, 2023
With two banks closing their doors, and a digital run on other financial institutions, consumers and businesses alike are concerned about access to their accounts. We provide strategies to strengthen your position with your customers, your community, and the financial industry.
Feb 24, 2023
With rising rates for CDs, and a competitive deposit market, should your CFI pursue brokered deposits? We weigh the advantages of brokered deposits against their risks.
Feb 6, 2023
With inflation at a historic high, American workers are finding it more difficult to wait to be paid on the standard biweekly schedule. Earned wage access is a direct deposit payroll strategy addition that can give employees access to their pay as soon as they’ve earned it.
Jan 9, 2023
The latest Fed rate hikes have some challenger banks offering CD rates above 4%. CFIs may be reluctant to compete at that level, even as deposits outflows happen, but there are strategies CFIs can use to help convince good customers to leave deposits where they are.
May 20, 2022
With increasing interest rates, community financial institutions stand to enlarge their net interest margin. Yet, lending competition is fierce in many areas, so it won’t always be easy. We give you three ways to generate income in the current rate environment.
Jul 2, 2021
Deposits increased by $3T over the past 14 months, leaving most financial institutions with a major imbalance — and major concerns about their net interest margins and return on assets. We review the current deposit glut and what community financial institutions can do to minimize their balance sheet disparity.
Apr 15, 2021
The industry is awash in cash, but not all deposits are created equally. Now is a good time to review and finetune your core deposit strategy. Ways to do this include: capturing customer relationships, revisiting your offerings, and restructuring fees so that you can position your institution for the future.
Jan 2, 2020
Today, we look back at the major events in 2019, while looking ahead at the economic landscape for 2020.
Jan 6, 2020
Today we answer questions from bankers on public banks, core deposits and Google's checking accounts.
Jun 28, 2019
Some banks are crypto-friendly these days. We provide a few examples. Yet, banks that accept cryptocurrency-sourced deposits need to be especially vigilant around AML rules.
Jul 3, 2019
Deposits at community banks are growing in rural areas faster than big banks. However, more needs to be done in metropolitan areas. We offer some guidance.
Jul 16, 2019
The FDIC noted in April that it's seeing gaps in banks' vendor contracts. We provide you with some important reminders to stay compliant.
Aug 8, 2019
To understand the potential impact of the yield curve these days, we took a look at some results from our relationship profitability model used by hundreds of bankers nationwide.
May 2, 2019
For those losing deposits to alternative accounts, it might make sense to think about revamping your traditional checking account with brand new features to lure depositors - particularly the younger crowd.
Apr 17, 2019
When it comes to banking performance, it makes sense to set goals and use metrics to track achievement. However, this is easier said than done.