Financial marketers weigh in: Driving deposit growth in today’s competitive environment

Financial institutions both large and small are battling to thrive in the current low-growth macroeconomic environment. While interest rates for consumers continue to dip (a trend that will theoretically stimulate loan demand, especially in the mortgage market), the cost to fund these deposits is predicted to rise. This rise could also impact net interest margin, a number that is forecasted to shrink by the end of 2025.

For consumers, the ongoing rumors of an upcoming recession coupled with persistent post-COVID price hikes equates to greater financial tension. This pressure continues to slow growth trajectory for other loans, like auto and credit card debt. High prices aren’t just a concern for consumers either – financial institutions also face growing expenses with the ever-present need to modernize and stay tech-relevant. For business, uncertainty around tariffs, political actions and the state of the economy has reduced the willingness of business owners to make significant financial decisions, including switching financial institutions.

For banking marketers and leaders looking to strengthen their assets and remain competitive, take comfort in knowing you’re not alone. Financial marketers have ranked deposit growth as their primary objective for 2025, followed by new household growth. Proactive banks are on the hunt for innovative and creative ways to pursue and retain deposits, as health and stability are dependent on this for safeguarding their core funding. The message is clear – now is the time to mitigate deposit attrition, secure new depositors and obtain low-cost deposits.

Trends in deposit growth marketing

Interest rate volatility is prompting banks to rethink their deposit acquisition strategies; it’s not just about attracting deposits but also about retaining them. Understanding the drivers behind customer decisions – such as branch proximity, convenience, fees and digital banking trends – is critical.

1. Consumers are reevaluating the products they use

Mass market customers are feeling the squeeze on their wallets, which has led to a reevaluation of how they manage their finances. Interestingly, the shift isn't just affecting checking accounts but is actually driving a migration of balances towards certificates of deposit (CDs).

Dana Davis, Head of Consumer Deposits and Payment Product Marketing at TD Bank, is among those pivoting their marketing strategy to account for the rise in popularity of CDs. “We hadn't marketed CDs in years prior,” Davis explained. “We shifted our marketing strategy to not only market CDs but also to think about how we retain those balances as customers approach maturity.”

While the popularity of CDs is on the rise, savvy marketers are wise to spread their efforts between popular and work-horse products. Zach Ratcheson, Director of Consumer Growth and Engagement at Synovus, is keen to ensure checking accounts don’t fall to the wayside.

“We really do believe—like so many of us do—that the checking product is core to the overall relationship,” Ratcheson explained. “We are always looking for those [unserved] segments and making sure they’re aware and included.”

2. Incentives remain a powerful (and sometimes problematic) strategy

Cash incentives remain a powerful tool for attracting and retaining customers. However, their effectiveness hinges on strategic implementation and monitoring to ensure they attract the right customer profile.

With so many looking to game the system, incentives can be a bit of a double-edged sword. Ratcheson shared how his team remains vigilant in the face of this challenge.

"We're very mindful not to go too deep into one area,” he said of Synovus’ incentive program. “We’re constantly refining the prospects and the deciles we're looking at.” He also emphasized the importance of having safeguards in place to eliminate any easy wins for potential gamers.

Emily Hertel, Manager of Direct Marketing at Regions Bank, also remarked on how her bank is testing new incentive strategies, saying, "Cash is king, but we are also testing offers that are combo, such as cash in addition to a money market rate." Rather than taking a one-size-fits-all approach, offers like these can be segmented to align with different customer behaviors.

For example, some segments may receive a straightforward cash offer, while others are presented with a more lucrative cash incentive in exchange for opening a preferred checking account. Tiered offers can also be deployed, adjusting incentives based on account types and deposit behaviors.

3. Personalization dominates the customer journey

Personalized marketing is at the forefront of customer engagement strategies. By creating relevant, customized creative content that meets the consumer at points along their journey, banks can foster deeper connections with their audience.

Hertel explained it this way: "We talk a lot about personalization, and I think that now it's going a step further – it’s using the data that we have to create very personalized journeys."

Implementing personalized offer systems can pose challenges, particularly in balancing flexibility and regulatory compliance. Banks must design systems that can tailor offers based on individual customer profiles while maintaining operational integrity.

Personalized journeys and goal-based conversations are becoming integral parts of the customer experience. By understanding individual customer goals, banks can better tailor their engagement strategies to foster deeper relationships.

4. AI integration is driving optimization across the board

By now everyone knows that AI isn't just a buzzword; it's shaping how banks operate internally and interact with customers. Banks are exploring the potential AI has to scale existing businesses and enhance creative development, particularly in digital marketing environments. As financial institutions continue to explore AI, the goal is clear: enhance customer experience while optimizing operations.

5. Cross-selling helps deepen existing relationships

Cross-selling strategies have come into focus for banks looking to deepen existing customer relationships. On the consumer side, cross-selling within existing products is crucial for cementing connections, whereas in the case of small business and commercial customers, banks are offering ways to engage in personal banking, thereby strengthening the overall relationship.

Karmen Conrad, Head of Marketing at Byline Bank, has made cross-sell a primary focus in her overall marketing strategy. "Cross sell is really important,” she stated. “It helps from a marketing efficiency standpoint as well as for deepening relationships with customers.”

Conrad went on to explained how, on the consumer side, Byline’s efforts were primarily centered on expanding engagement within existing consumer products, with occasional conversations to identify potential business banking needs. On the business side, the bank differentiates itself from competitors by emphasizing small business and commercial banking rather than a consumer-first approach. This strategy includes introducing business-only customers to personal banking opportunities to create a more holistic financial relationship.

Beyond traditional banking, the institution also provides integrated services – such as wealth management – to support business owners through major financial decisions, like buying or selling a business.

“We provide holistic services,” Conrad concluded. “We look at the customer’s overall wealth profile as an individual, not just as a consumer or business owner." 

Capturing and retaining deposits – as well as valuable deposit-holders – should always be at the forefront of any bank marketing strategy. With the right incentive, creative messaging and content strategy, marketers can be better equipped to identify and target the most profitable relationships through a smarter marketing strategy.

As banks navigate deposit growth challenges, rate volatility and the demand for personalized experiences, the focus should remain on delivering value, optimizing operations and fostering lasting relationships with customers. 

This article was informed by a breakout session held during Deluxe Exchange 2025.