What Smart Community Institutions Are Doing to Grow Deposits Right Now
By Cheyenne Stansberry, Director of B2B Marketing at Kasasa
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Executive Summary
- Community institutions must stop focusing solely on local peers and start competing directly with megabanks and fintechs by offering compelling reasons for consumers to switch.
- Rather than trying to outspend larger competitors on rates or marketing, community institutions should focus on creating unique, empathetic products that address real consumer needs and build lasting relationships.
- Even the best products will fail without proper marketing support, staff training, and consistent messaging across all channels to ensure both employees and consumers understand the value proposition.
For decades, community financial institutions grew deposits by doing what they did best: offering fair rates, providing personal service and competing mainly with other local peers. That playbook no longer works.
Rising interest rates, digital-first challengers and megabanks with billion-dollar marketing budgets have created one of the most competitive environments in recent memory. Consumers are willing to move money more quickly than ever, and they are constantly presented with new options – from fintechs promising seamless app-based experiences to national banks offering high-yield accounts at scale.
The stakes are clear: if community institutions cannot compete, they risk being left behind. But leaders in the space are showing it can be done. At a Kasasa roundtable, three CEOs shared how their institutions are evolving strategies to grow deposits and loyalty. Their stories reveal both the challenges and the opportunities facing community institutions nationwide.
Want more insights like this? Check out Kasasa’s intelligence hub: Low-Cost Deposit Strategies
Competing Beyond Your Peer Set
“Credit unions are really good at competing with other credit unions,” said Pierre Cardenas, CEO of Capitol Credit Union in Austin. “But if that’s the only competition we focus on, we’ll never grow significantly. We have to be ready to compete with Chase, Wells and fintechs.”
For Cardenas, this realization became tangible when his team won a significant account away from Chase. A longtime consumer of the megabank came to Capitol Credit Union frustrated with impersonal service and a lack of recognition. Capitol did not just offer a better rate. The credit union showed the consumer they would be valued as more than just a number. The client moved their entire relationship over.
“That was proof that people will leave the big banks if we give them a reason,” Cardenas said. “It was also a wake-up call for my team. We can compete on that level. We just have to do it intentionally.”
Community institutions can no longer afford to view their competition as only the credit union or community bank across town. The real competition comes from much larger players, and the opportunity lies in showing consumers why a local relationship offers more than any national brand can.
Out-Value, Don’t Out-Rate
The temptation to raise rates and chase deposits is strong. But as Cardenas pointed out, “We’re never going to outspend Chase on marketing or out-rate the online banks that are willing to take losses to grab deposits. What we can do is out-value them.”
At Capitol, that meant adopting Kasasa’s nationally branded, high yield checking accounts. On the surface, consumers see a competitive yield that grabs attention. But the real differentiation is in the structure. Rewards are tied to everyday behaviors such as debit card use and online banking, making the accounts both sticky and rewarding. When paired with Kasasa’s turnkey marketing campaigns, the offer becomes more than just a number. It becomes a story of value, loyalty and community that megabanks cannot replicate.
Rates are temporary. Value is enduring. A deposit strategy built only on rate is unsustainable, but a strategy built on clear consumer value can last.
The Marketing Execution Gap
Both Angelle and Cardenas emphasized that innovation alone is not enough. Even the best-designed products will fail if they are not brought to market effectively.
“You can’t just launch a product and hope people find it,” Angelle said. “You need a complete plan, from creative assets to staff training to scripting. That’s what makes it real for the consumer and for your team.”
Cardenas echoed this sentiment. For him, the ability to see performance reporting and campaign results in real time was crucial. “We’re not guessing,” he said. “We know what’s working and where we can improve. That makes us more confident in the investments we’re making.”
For community institutions, marketing is not an afterthought. It is the bridge that connects strong products with consumer adoption. Without it, even the best ideas risk becoming invisible.
Competing On Relevance
Throughout the discussion, one theme kept resurfacing: relevance is the true competitive advantage.
Consumers today are overwhelmed with financial options. They are not just comparing their community credit union to the one across town. They are comparing it to Amazon, Apple and every other seamless digital experience in their lives. That raises the bar.
“Consumers don’t just want a higher rate or lower fee,” said Gabe Krajicek, CEO of Kasasa. “They want a product that feels built for them. If your lineup looks like a spreadsheet from 2005, it’s time to rethink it.”
Relevance means more than just digital access. It means designing products that address real consumer needs, presenting them in a simple and transparent way, and ensuring they stand out in a crowded market. Complexity and sameness will not capture attention. Simplicity, empathy and differentiation will.
Lessons From The Front Lines
Cardenas’s Chase win was proof that community institutions can pull deposits from megabanks when they show consumers a clear reason to switch. “That one win was symbolic,” he said. “It showed us what’s possible if we stay focused on value.”
Both CEOs also spoke about the role of marketing in sustaining these wins. Training, scripting and consistent campaigns made sure staff were not just aware of the products, but excited to present them. That alignment created a ripple effect across their organizations and into the market.
Why This Matters Now
The urgency behind these lessons is real. Fintechs are scaling rapidly, often fueled by venture capital and a willingness to operate at a loss in pursuit of market share. Megabanks are investing heavily in digital platforms, data analytics and AI-driven personalization. Consumers, meanwhile, are more willing to switch institutions than ever before.
Community institutions cannot afford to stand still. But they also do not need to surrender the field. By modernizing products, focusing on value and executing with discipline, they can carve out a distinct advantage.
Trust and mission remain powerful assets. When paired with innovation and smart marketing, they can become unbeatable.
The Bottom Line
The path forward for community financial institutions is clear: stop fighting over the same small pool of peers and start competing against the bigger players. Out-value the megabanks, retire outdated products, invest in execution and, above all, stay relevant to consumers’ real needs.
“The future doesn’t belong to the biggest institutions,” Krajicek said. “It belongs to the ones that are most relevant to their consumers. And that’s a race community institutions can win.”
The stories from Capitol Credit Union and MCT Credit Union show what is possible. With intentional strategy and the right support, community institutions can grow deposits, deepen loyalty and thrive in one of the most competitive eras in banking history.
Watch the full roundtable discussion featuring Capitol Credit Union CEO Pierre Cardenas, MCT Credit Union CEO Thad Angelle and Kasasa CEO Gabe Krajicek.
Want to talk about how to modernize your product lineup and deposit strategy? Let’s chat.
