Strategic Deposit Growth: Beyond Rates
Growing deposits is reaching a competitive all-time high—characterized by rising rates, liquidity pressures, and increasingly digitally empowered customers—deposit gathering demands more than simply offering higher yields. According to industry analyses, standout institutions are those that integrate community engagement, digital convenience, and targeted relationship strategies—all backed by aligned execution and incentives.
Scanning commentaries across several financial institutions’ strategic approaches on deposit gathering yields some current industry best practices.
1. Host Community-Focused Branch Events
Baked into the Fortuna Bank, Columbus, Ohio, mission statement is a business model rich with community outreach and mentorship. President Ilaria Rawlins describes the bank as being a community “…cheerleader, connector, consultant and confidante” for small-business clients.
Likewise, Endeavor Bank, San Diego, CA, highlights its “Business Owner Forums” and ongoing educational events on its website. President Dan Yates says that these programs “underscore a consultative relationship driven by shared learning, not just banking products.”
2. Build Trust Through Consultative Banking
Industry research has shown time and again that community banks are more resilient during stress periods because they build deposits through personal relationships, not transactional rate-chasing. Banks that prioritize meaningful conversations—like asking where else clients keep their money—and offer tailored alternatives based on trust, typically win not only deposits but also client loyalty.
3. Target Deposit-Rich Industries with Precision
According to the 2024 report of SouthState Bank (Winter Haven, Fla.), institutions that diversify into operating accounts from sectors like property management, legal services, and nonprofit organizations outperform peers in earnings and deposit stability. These industries typically maintain low-cost balances and generate multiple product interactions, making them ideal targets for sustainable deposit growth.
4. Prioritize Government & Municipal Fund Deposits
The IntraFi Cash Service network allows businesses and municipalities to keep full coverage even beyond the standard $250,000 limit. Municipalities can maintain one banking partner yet still diversify deposits. All distributed funds are consolidated into a single dashboard and statement, easing compliance, reporting, and financial audits.
5. Capture Escrow Funds for Stable Deposits
Similarly, escrow-type deposits—from funeral homes to guardianship services—represent another stable, niche opportunity. Paragon Data Services, a niche fintech/software firm, simplifies internal escrow administration, reduces manual errors, supports compliance, and promotes transparent, efficient management of public funds.
6. Elevate Bank Community Engagement for Trust
Many banks are good community supporters. Century Bank, summarizes this involvement well on their community page. This institution focuses its contributions on “youth, education, arts, and community development,” and its employees volunteer countless hours in local nonprofits and events. The success of this tactic illustrates that when banks volunteer in civic clubs and serve on nonprofit boards, they build authentic trust and a deposit brand rooted in community partnership.
As reported on the Century Bank LinkedIn feed, “A bank should do more than hold your money—it should invest in the community.” Such visibility creates an environment where customers choose a bank because of who they are—not just what they pay.
7. Implement Seamless Digital Onboarding for Deposit Growth
According to a FIS case study, a $38 billion Midwest regional bank redesigned its digital account opening process to be “fast, frictionless and paperless,” allowing customers to open accounts in under five minutes on any device. This UX revamp nearly tripled completion rates, significantly boosting new account acquisition and deposit growth.
Additionally, a 2023 Jack Henry paper emphasizes that community banks often lose 25–50 percent of online applications due to friction. Institutions that create fast, seamless digital account-opening systems, however, dramatically reduce abandonment and drive deposit volume.
8. Promote “Bank at Work” Programs for Commercial Deposits
As noted by American Banker, the commercial and small business teams at Truist Bank encourage borrowers and prospective clients to place operating or idle funds with Truist, positioning themselves as a relationship bank.
9. Leverage Strategic “Backup Bank” Engagements
This business generation tactic has an established reputation for successfully bolstering deposits. Its advantages were most recently bolstered during the pandemic, when the PPP loan process was authorized by the federal government.
Over time, backup banks may find opportunity to step to the fore, taking on the full deposit relationship if the primary bank loses favor (for whatever reason) with a client.
10. Collaborate with COI Partnerships for Referrals & Deposits
Partnering with accountants, attorneys, and other Centers of Influence (COIs) helps bankers tap into referral networks a tactic noted by Morningstar. Co-hosted educational events or formal referral programs with these professionals can funnel high-quality clients and deposits by association.
11. Drive Quality Deposit Relationships with Incentive Programs
Incentive plans play a role: When frontline staff are rewarded for quality and longevity—not just volume—they prioritize sustainable deposit relationships over short-term wins. Business checking has long been considered more “valuable” than high-rate CDs, verifying the value of an incentivization strategy.
Building a Resilient Deposit Strategy
Competitive deposit growth in 2025 requires more than rate tactics—it demands community position, digital ease, trust-driven relationship building, and execution clarity.
As multiple institutions (including Fortuna, Endeavor, Truist, and SouthState) have demonstrated, the most resilient banks are those that earn deposits through proactive influence, not just gather them through promotion. When staff align with a clear, measurable strategy supported by an incentive structure, the results are both sustainable and strategically meaningful.
