Big banks are deposit vacuums: How other institutions can slow the flow
That 'giant sucking sound' is Millennial deposits flowing into the largest banks, who are reaping more than 80% of 2020's record-breaking haul, new data confirms. Community banks and credit unions must strengthen connections with younger consumers now. Here are several ways they can do that.
The lopsided distribution of new deposits among various financial institutions during COVID 2020 is almost as jaw-dropping as the size of the deposit inflows since the start of the pandemic. First-half deposit growth was a record-shattering $2.4 trillion, five times the size of the first two quarters of the Great Recession. Even in the third quarter, deposit growth still continued, albeit at a much slower pace.