In the last five years, over $2 trillion in deposits have shifted from traditional financial institutions to fintech platforms, not just from younger consumers, but from anyone seeking greater value and control over their money. This data stems from a new report released by Cornerstone Advisors, a leading financial services research and consulting firm, and commissioned by InvestiFi, a provider of digital investing solutions for financial institutions.
The report, Stemming the Deposit Outflow: The $2 Trillion Investing Opportunity, doesn't just indicate where the money is going, it reveals why. In short: the primary checking account is no longer enough. Consumers are unbundling their financial lives, assembling best-in-class solutions across institutions, and investing has become one of the first things they take elsewhere.
Key findings:
- Fintech investment accounts have drawn $2.15 trillion in deposits away from traditional financial institutions. Of the funds lost specifically by community banks and credit unions, 65% came from Gen X and Boomer customers.
- Nearly half of Zillennials aren't investing — mainly due to a lack of knowledge and perceived insufficient funds, both of which point to a need for better financial education.
- Over 50% of Millennials and Gen Z say they'd switch to a bank that offered checking integrated with investing, rewards, credit score tools, or bill negotiation.
Download the report to learn more about the importance of adding digital investing to bring account holders - and their deposits - back to your financial institution.