Corporate Finance Leaders Still Concerned About Bank Failure, Survey Shows

Depositors expect their needs for safety and values to align when choosing a banking partner in the wake of 2023’s bank failures and a resurgent focus on corporate responsibility. That’s according to the first annual Depositor Priorities Survey report, commissioned by Ampersand Inc., a financial services firm revolutionizing deposit management.

The full survey results, based on responses from leading executives and senior managers across industries involved in deposit administration, can be found here.

A few key findings include:

A high level of anxiety still lingers following 2023’s bank failures. Over half (55%) of respondents expressed concerns about the future when it comes to bank safety and soundness.
Depositors care more about the safety of their deposits than the interest rate they receive. Over three-fourths (77%) of respondents would be willing to give up a portion of their returns to an institution that guarantees their deposits’ safety.
Bank practices are not always aligned with depositor priorities. More than a quarter (28%) of respondents say that they are limited in their ability to select a financial institution because of loan requirements. And while safety is the top priority for depositors (91%), financial institutions believe that rate is their top priority.
Alignment with depositors’ social values is increasingly important. Two-thirds of respondents from financial institutions and financial services firms report that interest in values-based banking has increased in recent years. It follows, then, that 55% of depositors would be willing sacrifice returns—of up to 15% for some—to bank with an institution aligned with their values.

“It’s a new world out there for depositors and their banking partners, who must seek realignment in an era of mounting concern for social issues and heightened risk of bank failure,” said Reid Thomas, Chief Strategy Officer at Ampersand. “This report—the first in what will be an annual survey—will equip the financial services industry with a deeper understanding of depositor motivations and concerns, positioning them to better design products and services to meet their clients’ needs.”

Ampersand can help. The firm’s central focus is the alignment of deposit management strategies with the unique requirements of clients, a distinctive approach referred to as AmpersandAlign^®. These industry-leading solutions will reshape the landscape of deposit management by modernizing the relationship between financial institutions and depositors, which forms the bedrock of all financial services.

The survey, held in late 2023, draws on responses from over 100 executives or senior managers involved in the administration of cash deposits on behalf of their employers or their clients, including those in the healthcare, insurance, hospitality, retail, and professional and business services sectors, among others.

Ampersand, Inc. is a Midwest-based financial services firm, founded by highly experienced banking professionals, and dedicated to addressing the distinct treasury management needs of financial institutions and depositors.

Accounting