How to Grow Deposits With a Product-Driven Strategy

As rates remain volatile and deposits continue to flow out of the large banks, it is a pivotal moment for community financial institutions to reassess how they position and market their competitive product offerings.
Aug 31, 2023
Molly Riesenberger
Product Marketing Manager

Financial institutions of all sizes have been vying for deposits following the bank collapses earlier this year. Even today, things remain on the move. 

Since the end of May, deposits at large financial institutions have fallen while deposits at smaller and regional financial institutions have increased. The four biggest banks in the U.S. by asset size gave up $262 billion in deposits when compared to the year before. 

In contrast, many community and regional financial institutions are continuing to win back deposits. It’s the strong community ties and trust-backed relationships that have allowed depositors to remain calm and retain confidence in their community financial institutions. But many community and regional financial institutions are still on the hunt for deposits and are willing to pay aggressive deposit rates across products. 

Thinking about building a full strategy for determining rates and launching new products can be intimidating. We’ve thought through some tips, tricks, and considerations to ease the process and capture the up-for-grabs deposits.

Leverage a refined product-to-market process and distinct product positioning

New products open the door to capture deposits and connect with customers and members. Choosing the right type of product to offer requires thinking through risk, strategy, and market fit. 

Considerations when launching a new product:


  • Do we have a repeatable process for getting approvals for this product launch?
  • Can we add the new product to the online account opening flow?
  • How quickly can we get this product live on the online account opening flow?
  • Have we scheduled a post-launch review to determine if the new product was successful?


  • Is the description of my product simple and easy to understand?
  • Are we going to market with the appropriate risk tolerance in regards to funding limits?
  • Are the product features and risks explained clearly in a way that makes it easy for the consumer to make an informed choice?
  • How quickly can we make changes to the product if we need to make an edit?

Taking the Product to Market

  • Are other financial institutions in the area running a similar product campaign with a better rate?
  • What channels is your user base most likely to engage with?
  • How are you leveraging existing customers as you take this product to market?
  • Are you leveraging UTM codes and URL parameters to track user engagement from various channels?

There is power in expanding product offerings as depositors look for higher returns on their accounts 

In the time since the bank failures, consumers have gotten less worried about further potential failures and shifted attention to ensuring that their deposits were generating the maximum yield. 

This has left many consumers looking to money-market funds and CD products. Inflows to money-market funds are now at levels that haven’t been seen since 2020

A Narmi customer recently ran a new product campaign that grew $35+ million  in new deposits in just 30 days

A locally owned and managed $2 billion bank based out of the Midwest recently grew deposits by leveraging a rate-driven strategy with a multi-channel marketing campaign. 

The bank launched a 5% interest rate savings account and a 5.5% 13-month CD to attract new deposits. 

The bank leveraged a variety of marketing channels to ensure that the product got maximum visibility. The bank leveraged both traditional and digital channels to promote the product, using email and promotions on frequented financial websites to cover the digital marketing strategy. As for traditional marketing channels, the bank turned to direct mail and print advertisement. A key thing that the bank considered was choosing specific channels catered to their target demographics – for example, choosing a newspaper advertisement to reach a traditionally older demographic.

In less than 30 days of product promotion, the bank received more than 1,000 applicants and over $35 million in new deposits. 

Look for a digital vendor who allows you to add and edit products in real-time

Many digital account opening vendors have a traditional process for adding and updating product offerings. These processes include liaising with vendors to get things updated, often taking up to several weeks. This can hinder your ability to maximize on things like the latest rate, or an untapped CD strategy. At Narmi, we built a tool to ensure our financial institutions can make additions and updates in real-time. 

Narmi’s Product List Manager gives financial institutions full control over this process, creating a seamless user experience for staff and allowing financial institutions to capitalize on shifting deposits.

As deposits continue to remain up for grabs, Narmi’s Product List Manager empowers financial institutions to operate more efficiently while also offering the most appealing products and rates.

Narmi Inc.
3 East 28th St. Floor 12
New York, NY 10016

How to Grow Deposits With a Product-Driven Strategy