Everyone is on the hunt for new deposits. Big banks, community banks, credit unions, digital banks… everyone. But who’s winning them and how?
According to The Financial Brand, Chime is leading the way in “New Deposit Accounts.” What’s worse news for community banks is the “New Deposits Line Up” is as follows in order of most new deposits to least:
- Chime
- JP Morgan Chase
- Wells Fargo
- Bank of America
- Capital One
- SoFi
- PNC
- U.S. Bank
- Cash App
- TD Bank
What this means is, every non-bank and big bank mentioned in the list is each earning more new deposits year over year than community banks combined.
Deposits, Deposits, Deposits… Are You Winning New Deposits?
Granted, the strategy of the community bank is not necessarily volume – rather quality over quantity. However, there comes a point at which you do need more deposits than you have now, and you certainly do not want to be losing deposits to these non-banks and big banks trying to move into your area. So how are they doing it and what are community banks doing to keep deposits and win more?
It turns out that 77% of people who are interested in opening a Chime deposit account do. Here’s why. As reported by USA Today, it boils down to the belief people have that, with Chime and other more tech advanced companies, they have more direct access to their money. Whether or not “direct access” to their money is true, it is much more immediate. There are then no hidden or excessive fees – Chime made it so incredibly easy to set up an account.
But what’s better than talking with a trusted source, a friend, who is an expert in all things bank accounts and can walk you through opening an account? Then later, what’s better than having your own money at the tip of your finger, whenever you need it and want to make your own decisions? It’s a healthy blend of convenience tech, and trustworthy bankers that seems to be the winning combination.
Banker Report 
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