Not long ago, banks and credit unions were flush with deposits – bringing lending functionality into the digital banking experience to help promote loan growth.
Today, the deposit environment looks very different than it did just a few years ago. While the industry experienced significant deposit outflows during 2022 and 2023, deposit growth has returned and competition for core deposits remains intense.
According to the FDIC, domestic growth accelerated throughout 2025, with deposits increasing for four consecutive quarters as consumers and businesses returned funds to traditional financial institutions. At the same time, bankers continue to report elevated competition for deposits and ongoing pressure to deliver compelling digital experiences.1
So, how can you compete without relying solely on higher rates? The answer lies in technology.
Deposit Disruption
Digital banks and fintechs continue to capture a significant share of new checking accounts. In 2024, they accounted for 44% of all new checking accounts opened in the United States, demonstrating that consumers continue to favor fast, convenient, mobile-first account opening experiences.2
It’s no surprise, given the market for new transaction accounts is driven by young consumers. Younger consumers remain especially influential in deposit growth strategies. According to research conducted by The Harris Poll, 53% of Gen Z consumers and 51% of millennials identify digital banking as a top need when choosing a new financial institution, while 41% of Gen Z consumers and 38% of millennials view the ability to open an account online or through a mobile device as a key requirement. 3
The good news for banks and credit unions is that deposit momentum has returned. Industry data shows core deposits grew approximately 4% during the first three quarters of 2025, a significant improvement over 2024. However, fintechs remain aggressive competitors, particularly among younger accountholders, making digital acquisition and onboarding capabilities more important than ever.4
This underscores the need for a strong digital presence and a digital-first application process for new deposit accounts. After all, if given the choice to spend 20 minutes in a branch office (after finding the time in the day to get there during business hours) or five minutes opening an account using their phone or tablet – at any time of the day or night – which would win over the majority of today’s consumers and business owners?
Finding the Right Solution
With so many digital account opening solutions available to banks and credit unions, it’s essential to find the right one that aligns with your unique needs and strategy. Here are some key questions to consider as you evaluate whether your current solution is right, or if it’s time to look for something new:
- Does your account opening solution integrate across multiple platforms? You’ll discover friction points for applicants and see more manual back-office processes if your digital account opening solution doesn’t integrate well with your core, card systems, document imaging, and fraud solutions.
- Are you able to configure custom workflows based on a variety of criteria? When you can configure your applicant experience to reflect differences in account types, current accountholder status, application entry points (signed-in or signed-out), and other criteria, you can deliver a journey that’s right for your applicant.
- Do your solutions leverage third-party integrations to deliver best-in-class functionality? When the best-in-breed features and functions come from specialized fintech solutions (like Alloy does for CIP, fraud protection, funding, and forms) you can easily integrate them into your digital account opening solutions.
- Can you verify external deposit accounts in real time? Avoid fraud losses by confirming account ownership and availability of funds.
- Are your support teams or applicants rekeying data? You can reduce friction for the applicant by pulling data from the core to pre-populate applications for signed-in applicants. Then, reduce errors and manual re-entry from your back-office team by ensuring any data input by the applicant flows back to your core and document repository.
- Can both retail accountholders and businesses apply digitally? With business account balances five times larger than retail balances on average, you need to be able to serve both audiences digitally.
- Is your app designed to be mobile-first? If your mobile banking experience is an afterthought rather than a primary consideration, you’re missing out on efficiencies and likely adding friction to your applicant experience.
Feeling Abandoned?
Unfortunately, abandoned applications further complicate the quest for new accounts.
Application abandonment remains one of the largest barriers to deposit growth. Industry benchmarking shows that digital retail deposit applications experience an average abandonment rate of approximately 55%, meaning more than half of prospective accountholders who begin the process never finish it.
Research also suggests that account-opening journeys lasting more than five minutes can dramatically increase abandonment rates, underscoring the importance of streamlined, mobile-first experiences.5
To reduce abandonment, consider removing non-essential steps to speed account opening and provide desirable features in your application experience, such as:
- Push notification updates on application status
- Easily accessed deposit insurance limits and information
- User identification via face recognition (selfie or photos of documentation)
- Viewing an up-front list of required documentation
These in-demand features that further demonstrate speed, transparency, and security are top-of-mind for today’s depositors.
Drive Deposit Growth Through a Digital Banking Platform
While you can find many stand-alone account opening solutions, solutions that integrate with your digital account opening platform will inevitably provide you with a stronger return and improved applicant experience.
Consider the tight integration now available between JHA OpenAnywhere™ and the Banno Digital Platform™.
It’s simple to add the “open an account” card in the main digital banking experience, rather than relegating it to a hard-to-find page. The information available in the core can carry over to pre-populate applications for signed-in applicants, and the core-connected nature of the integrations removes the need to re-key data.
You have the flexibility to determine what types of businesses can apply digitally – with many financial institutions choosing more simple business structures like DBAs or LLCs to begin with and adding business types as their comfort levels increase.
And, built with cloud-native, open APIs, it’s a fintech-friendly solution set – empowering you to integrate best-in-breed solutions.
Provide Stability in a Changing World
As deposit growth returns across the industry, financial institutions have an opportunity to strengthen relationships and capture new households through digital channels. Consumers are looking for the combination of security, convenience, transparency, and speed. Institutions that offer seamless digital account opening, integrated onboarding, and easy access to deposit insurance information will be better positioned to compete for these valuable relationships.
You’ll discover transparency, ease of use, and 24/7 access can help you attract and retain the valuable deposit accounts you’re looking for.
Interested in learning more about how digital banking and deposit account opening work together at Jack Henry™? Contact our team to learn more.
[1] FDIC-Insured Institutions Reported Return on Assets of 1.13 Percent and Net Income of $69.9 Billion in Second Quarter 2025[ED1] , Accessed July 2026
[2] Why Fintechs Are Beating The Banks In New Checking Accounts[ED2] , Accessed July 2026
[3] 18 Statistics Revealing Credit-application Abandonment Rates Online[ED3] , Accessed July 2026
[4] Banking Analytics: Core Deposit Growth Accelerated in 2025, St. Louis Fed, Accessed July 2026[ED4] , Accessed July 2026
[5] Why Members Abandon Online Account Applications (And How to Fix It)[ED5] , Accessed July 2026
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