SoFi Blog

By Tony Morosini, VP of Banking

There’s no question deposit accounts are having a moment. In a rising rate environment, banks earn an increasing yield on the deposits they hold, and these additional proceeds can often go directly to earnings. To gather more deposits, banks fight to get consumers to switch banks, but it’s a tough sell because changing banks is painful.

While lots of institutions are offering deals to entice people to move their accounts, they haven’t invested in making the consumer experience as good as it should be. People have been using and managing money online at scale for 20 years, and we’ve now gotten to a place where people are not just comfortable with handling money online, but they expect it. The traditional financial institutions have improved on some marks, like improving their mobile experiences (or at least creating one at all), but there’s still a lot of space to tackle.