Yes, You Still Need Core Deposits
Feb 25, 2025
Fintechs and stablecoins are competing aggressively for deposits, so you (as a banking leader) must sharpen focus on core deposit growth. This is part 7 of our 8-part series on Why Treasury Management Excellence Matters. Treasury management is one of the best-kept secrets to achieving this goal.
Core deposits provide stable, low-cost funding to support lending activities. Without them, you become increasingly reliant on wholesale funding or higher-cost deposit channels - both of which erode profitability.
Treasury management services are the glue that keeps business customers with your institution. When you offer ACH origination, remote deposit capture, positive pay, and cash concentration services, you make it inconvenient for businesses to leave. TM services integrate into a customer’s daily operations, creating stickiness and deeper relationships.
When bringing in new commercial loan customers, it’s critical to also bring in their deposits and treasury management business. Focus on both sides of the balance sheet - assets and liabilities - to maintain a healthy, profitable bank.
Treasury management is not an optional service. It’s a core strategy for building a strong, resilient deposit base in today’s competitive landscape.
TMClarity™ empowers Community Banks to attract more business core deposits and increase non-interest fee income. Our framework enables you to become world-class in the selling, implementation, and customer support of treasury management services offered to your business customers.
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