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Sticky Deposits Insights

To attract and retain sticky core deposits, community banks must shift from rate-based strategies to tailored, fintech-enabled offerings that deepen customer relationships and meet operational needs.

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Key takeaways:

  • Segmentation over pricing: Successful deposit strategies start by identifying and serving distinct business segments with targeted products rather than broadly chasing deposits with competitive rates

  • Embedded fintech enhances stickiness: By integrating tools like invoicing, escrow subledgers, and cash flow alerts into digital platforms, banks can deliver high-utility experiences that increase customer loyalty

  • Digital tools are essential but not sufficient: Online access is no longer a differentiator—customers now expect intelligent tools that streamline operations such as payroll, receivables, and cash flow management, all within the banking ecosystem

  • Life cycle-focused strategy: Banks must engage customers throughout their journey—from onboarding and cross-selling to monitoring behavioral data—to create sustainable deposit relationships

  • Relationship-driven banking still matters: Despite digital innovation, advisory relationships remain critical, especially for business owners seeking personalized guidance, not just transactional services