How to boost CD deposit growth with smarter digital strategies

The battle for deposits has emerged as a top challenge facing community banks. Deposit growth is no longer a given; many banks are losing millions of dollars due to factors such as outdated digital experiences (or none at all) and an increasingly crowded competitive landscape. To level the playing field, banks must leverage strategies that combine competitive offers, digital discoverability and the right kinds of engagement..To stay competitive, banks must evolve — and fast. Banks must prioritize their digital presence and adopt modern digital marketing strategies that optimize digital discoverability to meet customers where they are: online.Making the matter even more urgent, large banks with deep pockets and sophisticated digital marketing capabilities currently dominate search results and online ad space, making it increasingly difficult for smaller institutions to be seen. For example, only eight financial institutions hold 31 percent of the overall market for certificates of deposit.This challenge also presents a clear opportunity. While community institutions can’t outspend the big bank brands, they can use modern tactics to more effectively compete. By investing in targeted, data-driven digital marketing strategies, banks can ensure their offers and messages reach the right audience at the right time.One promising, cost-effective tactic is experimenting with easily accessible digital channels to boost visibility of high-performing deposit offerings. A prime example can be found in CDs. Community institutions typically offer more competitive CD rates than the large banks, delivering greater value for savers and a strong opportunity to attract new deposits and customers.A particularly effective strategy is participating in digital marketplaces that showcase CD offers from institutions of all sizes. These platforms help customers compare rates easily, while allowing banks to extend their reach well beyond their branch footprint. Geo-targeting makes this approach even more powerful. Instead of casting a wide — and costly — net, institutions can tailor offers to high-intent, local audiences, making every marketing dollar count.However, not all digital marketplaces are created equal. It’s essential for banks to evaluate potential partners carefully. Look for platforms that are unbiased and not simply selling website real estate to the highest bidder.Also prioritize marketplaces that provide flexibility. The ability to pause or adjust campaigns once a daily or monthly funding cap is met allows institutions to stay agile and control acquisition costs. Look out for platforms that require steep monthly minimums that just aren’t realistic for many community banks. The right partner will offer scalable, budget-friendly options, making digital success not just possible but sustainable.However, visibility is just the first step. What truly drives results is what happens after a customer sees an attractive offer. It’s essential that CD products are not only competitive in rate and term, but that the institution has a seamless experience in place for the next step. A clunky or confusing digital account opening process can deter even the most motivated saver.When all the pieces align — compelling offers, smart targeting and a seamless digital experience — the payoff can be significant. In fact, many banks report a “halo effect” from their digital efforts: Increased branch traffic and phone inquiries from customers and prospects who discovered their offers online and decided to engage directly.To truly turn CDs into a long-term growth engine, banks should think beyond the initial transaction. Having a follow up plan is key, including targeted email outreach, ongoing financial education, and introducing new customers to real people at the bank that they can interact with. This is an area where big national banks are really missing the boat, presenting an opportunity for community institutions to highlight a notable differentiator.The issue for many community banks isn’t the quality of their deposit products — it’s that those products aren’t being discovered. If a CD offer isn’t easily found online, it’s effectively invisible, no matter how attractive the rate. Unbiased digital marketplaces can make a meaningful impact, leveling the playing field and empowering financial institutions to more effectively compete.To win the deposit battle, community banks must sharpen their digital edge, combining smart pricing, compelling marketing and a seamless digital experience. This winning formula not only enables banks to better compete effectively but can also build lasting customer relationships.Mary Grace Roske is the head of Marketing & Communications for CD Valet, a digital marketplace that connects consumers with top CD rates from banks and credit unions nationwide.