Optimism Amidst Economic Shifts: The Future of Bank Deposits

U.S. Bankers' Positive Forecast for Deposit Expansion

In a recent S&P Global Market Intelligence Q2 2025 U.S. Bank Outlook Survey, a strong majority of bankers across the United States expressed confidence in the prospect of deposit growth within the next year. This sentiment highlights a generally positive outlook within the banking sector, anticipating an expansion of their deposit bases.

Shifting Landscape in Small Business Deposits

Despite the overall positive forecast, the survey identified a notable concern regarding small business deposits. The proportion of bankers expecting a decrease in small business deposits at their institutions over the next year saw a sequential rise, indicating a growing apprehension about this specific segment. This suggests potential shifts in small business financial behavior or increased competition for their funds.

Heightened Competition in the Deposit Market

The competitive environment for deposits has noticeably intensified. Nearly half of the surveyed financial institutions reported a surge in competition for deposits in their local markets over the preceding year. This increased rivalry could lead to more aggressive strategies from banks to attract and retain funds, potentially impacting interest rates and service offerings for customers.