The data show that online deposits increased by more than 62 percent from 2019 to 2020. Over that same time, deposits at brick-and-mortar branches grew by slightly more than 21 percent. Online deposits increased by another 42 percent from 2020 to 2021, while brick-and-mortar deposits grew by around 10 percent.
Online deposits now account for more than 5 percent of all deposits at U.S. commercial banks, and that percentage is expected to increase. Since we know that deposit relationships generally lead customers to develop other types of banking relationships, a comprehensive analysis of competition needs to account for the ubiquity of out-of-market banks with a strong national presence.