Beyond Rate Wars: How Commercial Banks Can Actually Win Deposits in 2025
For commercial banks, attracting and growing deposits is a perennial priority, but the strategies to achieve this goal are constantly evolving.
In 2024, the commercial banking industry saw deposits nearly return to pre-crisis levels, but this liquidity came at a cost. The shift from non-interest-bearing to interest-bearing accounts drove up funding costs and squeezed net interest margins.
Our research for the 2025 State of Commercial Banking report highlighted several tactics that can help separate the leaders from the followers in the chase for deposits.
Offer competitive rates for client acquisition
Data indicates that new clients often receive higher rates than existing ones. Promotional pricing can be a powerful tool, but it must be balanced with overall profitability goals. FIs can use rate as a catalyst for winning new client relationships.
Strategically manage deposit rates
As the Federal Reserve adjusts monetary policy, FIs should consider implementing more modest rate cuts than the Fed to maintain attractive rates for depositors.
Expand treasury management offerings
Winning ancillary business, such as treasury management, is essential for achieving profitability in the current rate environment.
Focus on the SMB market
The underserved small and medium-sized business (SMB) market presents a significant opportunity for deposit growth. FIs should develop digital platforms that integrate with fintech solutions and leverage data for personalized outreach.
Embrace digital transformation
The digital capabilities of FIs can drive the acquisition and growth of business relationships. In addition, efficiency and user experience are becoming even more pivotal for midsize and large companies.
Harness data-driven personalization
FIs must use the transformative power of data to create personalized experiences for commercial clients. By using data to deliver timely, relevant solutions, FIs can drive engagement and loyalty.
Partner with fintechs
Rather than competing with fintechs, FIs should look to partner with them to provide business-critical capabilities, such as payroll, invoicing, and cash forecasting.
For a more in-depth analysis of the commercial banking trends in 2024 and how they can drive better performance in 2025, check out the 2025 State of Commercial Banking report.