The financial landscape is evolving at an unprecedented pace. Fintech companies have reshaped consumer expectations, offering seamless, tech-driven banking and investing experiences. This shift poses a significant challenge for community banks, which risk losing deposits to more digitally agile competitors. Yet within this disruption lies a massive opportunity: Cornerstone Advisors estimates that effectively addressing deposit outflows could unlock a $2 trillion growth potential for traditional institutions.

So how can banks capture this opportunity? The answer lies in integrated digital investing, combining strategic innovation, targeted offerings and account holder-focused engagement. Here are four strategies to help banks retain deposits, deepen relationships and drive growth.

1. Incorporating investing into the banking experience

Modern account holders expect convenience and integration in their financial lives. Banks can meet this demand by seamlessly embedding investing functionality into their online and mobile banking platforms. Offering a unified experience where account holders can manage checking, savings and investing in one place makes wealth-building more accessible and engaging.

According to a Cornerstone Advisors report, 40% of Gen Z, 45% of Millennials, 33% of Gen X and 12% of Baby Boomers would engage with investment services if offered directly through their primary banking platform. Integrating these services strengthens loyalty, as customers are more likely to remain with a bank that meets multiple financial needs in a single, convenient ecosystem.

2. Target generational investing needs

Investing preferences vary across generations, shaped by life stage, financial priorities and comfort with technology. A one-size-fits-all approach is no longer sufficient.
Strategy: Banks should tailor offerings to each demographic’s unique preferences and behaviors.

• Younger generations may respond best to gamified tools, low-barrier-to-entry investment options and intuitive educational resources.
• Older generations may prefer personalized advisory services, retirement-focused portfolios and clear, low-friction guidance.

By recognizing these differences, banks can deliver a personalized experience that resonates with account holders of all ages, increasing both engagement and satisfaction.

3. Educate and engage account holders on investing

Investing can feel intimidating, especially for those new to wealth-building. Cornerstone Advisors’ research shows that seven in ten non-investing Gen Z and Millennials have more than $5,000 in savings—enough to begin investing—but many lack awareness of accessible investment options.

With this in mind, banks should focus on education and engagement to convert interest into action. Offering webinars, workshops, guides and online tutorials that break down financial concepts can empower account holders. This not only builds confidence but also fosters trust, a key differentiator for community institutions competing with fintechs.

4. Innovate investing based on deposit outflows

Research highlights a significant shift in the financial sector, with over $1 trillion in deposits migrating from traditional banks to fintech savings accounts. While this trend presents a challenge, it also provides a strategic opportunity.

Banks can leverage analytics to understand deposit outflows and identify service gaps. By aligning offerings more closely with account holder needs, institutions can evolve into holistic financial platforms that integrate banking and investing services seamlessly. This approach safeguards against future outflows and positions banks as indispensable partners in their customers’ financial journeys.

Final thoughts

The rise of fintech is not a threat—it is a call to action. Banks that adopt a data-driven, account holder-focused strategy can stem deposit outflows, strengthen relationships and capture a share of the $2 trillion opportunity.

By integrating investing into digital experiences, targeting generational needs, educating account holders and creating innovative products based on actionable data, banks can secure their place at the heart of their communities while preparing for a future defined by growth and resilience.

For further insights and actionable recommendations, download the full Cornerstone Advisors report.