Study Highlights $2T Deposit Shift Toward Fintech and High-Yield Options - Greater Phoenix In Business Magazine

The research, Stemming the Deposit Outflow: The $2 Trillion Investing Opportunity for Banks and Credit Unions, doesn’t conscionable illustration wherever the wealth is going; it reveals why. In short, the superior checking relationship is nary longer enough. Consumers are unbundling their fiscal lives and assembling best-in-class solutions crossed institutions, and investing is 1 of the archetypal things they instrumentality elsewhere.

The study, commissioned by InvestiFi, is based connected a survey conducted by Cornerstone successful May 2025 of 2,757 U.S. adults with a smartphone and a checking account. Key findings include: Of the $2.15 trillion successful deposits mislaid specifically by assemblage banks and recognition unions, 65% came from Gen X and babe boomer customers, astir fractional of zillennials (Gen Z and millennials combined) aren’t investing, chiefly owed to insufficient cognition and a perceived deficiency of funds, some of which constituent to a request for amended fiscal education, and implicit 50% of zillennials said they’d power to a slope that offered checking integrated with investing and different benefits.

According to Ron Shevlin, main probe serviceman astatine Cornerstone Advisors and writer of the report, the changing relation of the checking relationship is astatine the bosom of the shift. “Increasingly, Americans dainty their checking accounts similar paycheck motels—temporary places for their wealth to enactment earlier it moves connected to higher-yield savings accounts, concern platforms, and different alternate fiscal services.”

On average, Americans surveyed for the study rated their superior checking relationship a lukewarm 7.8 retired of 10, with younger generations adjacent little impressed. More than a 3rd of Gen Zers and 40% of millennials said they’d beryllium “very likely” to unfastened a caller checking relationship if they could straight marque investments from it, get rewarded for moving wealth into an concern relationship with the aforesaid provider, oregon bundle the relationship with recognition people management, subscription management, and measure negotiation.

“The information makes wide that consumers aren’t abandoning banking, they’re abandoning banking that doesn’t deliver measurable value,” Shevlin concluded.

The emergence of cryptocurrency is amplifying this threat. The survey recovered that: 25% of Gen Z and 33% of millennial investors clasp crypto assets, connected average, zillennial investors person 25% of their investable assets successful cryptocurrencies—20% person much than fractional of their portfolio successful crypto, and 33% of zillennials and astir 20% of Gen Xers program to put successful crypto this year.

Banks and recognition unions that disregard crypto arsenic a fringe fad hazard are missing the broader investing displacement that’s pulling deposits—and full relationships—out of the accepted banking ecosystem, Shevlin observed.

What consumers are demanding is composable finance, said Kian Sarreshteh, CEO and co-founder of InvestiFi. They privation integer tools that alteration them to save, spend, invest, and turn each wrong 1 seamless experience, and fintechs are already delivering this.

“Community banks and recognition unions aren’t conscionable losing Gen Z,” Sarreshteh said. “They’re losing anyone who’s actively trying to turn their money, and that means astir everyone. Consumers person stopped waiting for their slope to evolve; they’re moving on.”