Connect with the author: peter.serene@curinos.com
This is the second in a series of reports on the current state of consumer banking and how decision intelligence is quickly and dramatically altering the industry as we enter the first full year of AI-native banking.
All banks are fighting to grow deposits in the early going of 2026, but some may be under-appreciating the value of retention. Industry data show that average balances on lost checking customers is materially higher than balances on new-to-bank accounts. Banks are losing an average of $8.6k in checking balances when their customers take their business elsewhere while the average balance on newly acquired checking accounts are only $6.3k.
The economics speak for themselves. According to Curinos models, every $1 billion in lost deposits costs an additional $11 million in replacement expenses (see chart). When banks rely too heavily on acquisition, they unintentionally raise betas, lift promotional pricing and otherwise undermine portfolio economics.
The Cost of Deposit Churn and Value of Deposit Retention
Note(s): Business Case Inputs: Consumer Deposits – $40B, Attrition Rate – 10%, Acquisition Rate – 256 bps, Portfolio Rate – 145 bps, Retention Improvement – 25%,
Source(s): Curinos Analysis, Curinos Deposits Analyzer
Leaders should ask themselves what customer segments are driving the most expensive churn and how rate and marketing can be optimized to reduce unnecessary spend. Decision intelligence through Curinos Deposit Analyzer and Deposit Optimizer can help. They can quantify the cost of churn, evaluate pricing scenarios and model retention improvements at portfolio scale.
The evidence is clear: Retention is no longer merely an operational metric—it’s a core driver of profit.
