Deposit betas for small business customers and members are consistently lower than those of consumers and commercial entities. So it’s no wonder that providers increasingly look to small businesses to help lower their deposit acquisition and retention costs. But maximizing their efficiency requires more than a focus on deposits – it also requires primacy.
Curinos research finds that, 36 months after account opening, small business deposit balances are 2.3 times higher for customers with a lending relationship than those without lending.
This is compelling evidence of the long-term value of nurturing broader banking relationships. By cultivating comprehensive banking partnerships through access to credit and other services, banks can realize sustained growth, greater stability and lower costs in their deposit portfolios.