Who’s Winning on Deposits? Q1 2023 Market Gains and Declines for Banks and Credit Unions

Growing and retaining deposits isn’t easy. And, in today’s market, competition is increasingly fierce and consumers — and businesses — can make or break a bank based on where they choose to bank. 

Increasing deposits isn’t just about offering the best rate or incentive. It requires a number of integrated tactics strategically combined to motivate people to take action or open an account. It requires a personalized approach to marketing and customer engagement. It requires building and retaining trust with consumers.  

Let’s take a look at how banks and credit unions netted out at the end of Q1 2023 (based on data from FDIC and NCUA): 

Deposits down across the majority of financial institutions.

Forty-three percent of financial institutions reported a loss in deposits from Q4 2022 to Q1 2023. Overall, 40% of credit unions reported a loss while 48% of banks lost deposits. Amongst the top financial institutions by asset size, the average percentage of deposits lost or gained was:

• Top 10 Financial Institutions: -1.38% 
• Top 25 Financial Institutions: -1.86%
• Top 50 Financial Institutions: -2.28%

Biggest winners for deposits likely driven, in part, by acquisitions. 

Of the top 9 financial institutions with the largest increase in deposits, four of them acquired or merged with another bank in Q1 2023: 

Biggest declines for deposits include First Republic Bank prior to its acquisition by Chase in Q2.