10-Q, Member Exclusive

Deposits vs. Payments – What drives more value for banks today?

  • The crossroads of legacy banking and modern fintech brings a simple yet critical question: what powers lasting value for banks?
  • Investors are moving past the “bank vs. fintech” debate and focusing on how well payments fit into a sustainable funding model.
close

Email a Friend

Deposits vs. Payments – What drives more value for banks today?

    The new banking formula: deposits plus payments


    There was a time when banks and fintechs competed mostly on bells and whistles: smoother apps, faster checkout, appealing rewards. But in the world of public markets and quarterly earnings, functionality gives way to fundamentals. At the intersection of traditional banking and modern fintech lies a simple but growing question: what actually drives sustainable value for banks today?

    Is it the buzz‑worthy growth of payment volumes and new revenue streams – or the old‑school strength of deposit balances and net interest income? The answer isn’t as cut-and-dry as headlines might suggest; it’s a mix of factors.

    Banks that are expanding their deposit base while also focusing on building fee-based revenue, payments, and now blockchain payments are pursuing a hybrid model approach. If executed carefully, this model can strike a balance between stability and growth, keeping deposits at the core while payments support expansion. 

    SoFi is a case in point.


    subscription wall for TS Pro

    0 comments on “Deposits vs. Payments – What drives more value for banks today?”

    10-Q, Member Exclusive

    Consumer banking is back in focus – and looks nothing like 2019

    • Major US banks are reconfiguring their consumer banking businesses in different ways.
    • The renewed focus on consumer banking isn’t tech-driven. It reflects a shift toward capital-light touchpoints that become gateways to advice, wealth, and capital allocation.
    Sara Khairi | April 13, 2026
    Banking, Member Exclusive

    For U.S. Bank, embedded finance was step one. The self-reinforcing model is step two.

    • U.S. Bank is focusing on three levers: speed of integration, intelligence of response, and depth of embedding in decision flows.
    • The strategy sets up a self-sustaining cycle: usage grows from integration, data flows from usage, and products evolve in near real time.
    Sara Khairi | April 09, 2026
    10-Q, Member Exclusive

    The work beneath the work: How J.P. Morgan, BofA, U.S. Bank, and Citi are rebuilding their internal systems

    • Four big bank developments dominated headlines this week: one focused on small businesses, two on AI innovation, and one quashing an acquisition rumor.
    • These moves suggest the largest US banks are reorganizing around a thesis: identifying where value is now created and how distant they are from fully internalizing it.
    Sara Khairi | April 06, 2026
    Banking, Data, Member Exclusive

    What a bank-client relationship looks like when banks control the data behind the UX

    • Client–bank relationships have long revolved around a destination model: clients log in, navigate dashboards, export data, assemble insights. Grasshopper Bank is rewriting that dynamic by moving from a destination to a ‘layer’.
    • The digital bank has launched its MCP server to bridge a critical gap: letting clients use modern AI tools with their financial data without sacrificing banking security or control.
    Sara Khairi | April 02, 2026
    10-Q, Member Exclusive

    PayPal doesn’t have a growth problem – it has a positioning problem

    • At a time when payment winners must command either infrastructure or interface, PayPal is awkwardly positioned between the two.
    • The questions now are: Where does PayPal sit in the payments ecosystem, and does that position still matter? What unique role does it play in a stack that increasingly bypasses middle layers?
    Sara Khairi | March 30, 2026
    More Articles