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.

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