Weathering the storm: Deposit marketing strategies for turbulent times

In a recent report by the Bank Administration Institute (BAI) on the state of the U.S. deposit market, ominous clouds are forecasted to loom over banks and credit unions, hinting at a potential negative growth trend in deposit balances throughout 2024. Factors such as persistent inflation, the resurgence of student loan payments and pent-up spending among the mass affluent are exerting relentless pressure on deposits, painting what could be a bleak picture for financial institutions.

In the face of these challenging conditions, resilience in deposit marketing strategies is more important than ever. “There’s a natural tendency to want to wait out the storm by pulling back on deposit marketing,” says John Tracy, VP of data-driven marketing at Deluxe. “But it is the financial institutions that continue their deposit marketing, despite gale-force headwinds, that tend to do better after the storm passes.”