Savings Apps Cost Consumers. Banks Can Help Save Them.
Community banks can reclaim the customers and deposits they have ceded to digital savings applications.
It can be difficult for community banks to find the right tool to help them gain low-cost deposits in today’s low-rate environment. Although rate specials on certificates of deposits can be an obvious quick win, they do not provide the right “stickiness” needed to create a long-term relationship that generates future deposit gathering. Personal finance apps like Digit, Qapital and Acorn bring even more competition to community banks, taking away deposits in small amounts that can really add up.
Consumers want more digital products and automated mobile banking options in today’s smartphone-centric world, but many of the popular savings and investing apps charge fees that may not be in their best interes