The banking landscape is shifting—fast. In 2024, 87% of all new checking accounts were opened at large regional banks, megabanks, digital banks, and fintech firms. That leaves smaller banks with just 4% of the market. How can community and regional banks compete?
Rethink the Role of the Checking Account
Today’s consumers use their checking accounts as storage while relying on Venmo, Apple Pay, and PayPal for daily transactions. Integrating these payment tools helps to stay relevant.
Differentiate Beyond Cash Incentives
Yes, big banks and fintechs offer massive cash bonuses, but only 27% of switchers cited these incentives as the reason for selecting their new institution.
Market Smarter, Not Harder
A superior product alone won’t win the game. If people don’t know about it, they won’t choose it. Community and regional banks must allocate marketing dollars strategically, ensuring the right message reaches the right audience via the right channels.
Play to Your Strengths
Focus on deep customer relationships, personalized service, and localized expertise—advantages that fintechs and national players struggle to replicate.
The Takeaway: The checking account remains the cornerstone of banking relationships—but its definition is evolving. The institutions that understand this shift, tailor their approach, and invest strategically in marketing will be the ones to win the battle for the next generation of customers.
