Facing rising interest rates, financial institutions have shifted their efforts from lending to deposits. Meanwhile, the market has become increasingly saturated with attractive offers and flashy interest rates. Neobanks are leading the charge with intuitive technology and competitive offers, capturing 47% of new checking accounts opened in 2023.
This fluctuation has created a liquidity crisis for banks and credit unions. According to a recent survey, 43% of financial institution respondents listed deposit growth as their #1 priority over the next two years.
“FDIC reported that banks saw their deposit base decline by $472B in the first quarter of 2023, as measured from the end of the year. That’s a 2.5% drop in the total deposits held by banks.” – PAYMNTS, 2023