The banking landscape in the United States is witnessing a significant shift, and regional banks find themselves in a challenging squeeze for deposits.

The latest reports indicate that the top four U.S. banks captured nearly half of all banking profits in the third quarter; meanwhile, the smaller banks are seeing their profits dip. This significant shift in the banking industry has everyone asking: How can these smaller banks hold their own and keep growing?

Here's where a smart move can make a huge difference, and it's all about tax refunds. This is where april's product, The Filer, comes into the picture.

The power of tax refunds in banking

Tax refunds represent a powerful yet often overlooked financial resource that can be transformative for regional and super-regional banks who want to increase their deposits. As an embedded tax solution, The april Filer integrates into the existing mobile applications of our partner banks, making the tax filing process straightforward, accessible, and, dare we say, more enjoyable for American taxpayers. This integration transforms a traditionally complex and tedious task into a value-added service that helps regional banks show up with financial solutions for their customers' big moments.

For regional banks facing the squeeze, The Filer offers a dual advantage. Not only does it position regional banks as forward-thinking, customer-centric institutions that offer more than just traditional banking services, it provides a tangible solution to the challenge of deposit growth by channeling tax refunds directly into customer accounts. For partners that used april's Filer, 97% deposited their refund into their accounts.

By embedding The Filer into their ecosystems, regional banks can retain their existing customer base and attract new customers seeking a more integrated and convenient banking experience. This approach aligns perfectly with the evolving expectations of modern banking customers who value efficiency, innovation, and financial empowerment.

Attract with low CAC and retain with personalized solutions

In the competitive financial services landscape, attracting new customers while maintaining low customer acquisition costs (CAC) is challenging. Embedding The Filer solves this challenge by helping our partners stand out in the crowded market. Embedded tax filing appeals to potential customers who want to simplify the number of financial tools they use but also love the local feel of a regional bank. Suppose regional banks continue to focus on building local communities and having more of a "personal touch" when building their banking relationships. In that case, personalized banking aligns perfectly well with the perspective of many regional banks.

Instead of spending heavily on traditional marketing strategies, banks can leverage The Filer's unique service as a strong selling point and lower CAC. This approach significantly reduces the expenses typically associated with acquiring new customers and serves as a natural draw for those seeking one banking relationship that solves all their financial needs.

Regional banks can access additional insights when their customers choose to share information through an embedded tax product, enabling them to tailor their services and products more effectively with customer consent. This ability to provide personalized banking experiences is a crucial differentiator in today's financial world, where customers seek services that cater to their needs. With insights gleaned from tax information, banks can suggest targeted financial products, savings plans, and investment strategies, making each customer's banking experience unique.

Conclusion

The squeeze for deposits is real, but so are the opportunities for those willing to innovate and adapt. The april Filer represents more than a technological solution; it embodies a strategic shift toward enhancing financial wellness and competitive resilience. As regional banks navigate the challenges of a rapidly changing financial landscape, The Filer stands out as a beacon of opportunity, offering a path to survive and thrive in these dynamic times.

This content is provided for informational purposes only and should not be construed as tax, legal, financial, or other professional advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need specific advice. Any data shared is subject to applicable law and consent.