By Achim Griesel
In today’s banking environment, the race for checking account dominance is heating up — and not just among traditional financial institutions. According to recent research by Cornerstone Advisors, digital and neobanks are capturing a massive share of new checking accounts. Some sources claim that up to 44% of all new accounts are opened via fintech companies. Even though most of these are opened at banks through white-label relationship, the fintech company maintains the customer relationship and is the primary brand.
At first glance, this sounds like a crisis for community banks. But, scratch beneath the surface of the data, and a more nuanced — and less alarming — story emerges.
While there’s no denying that digital banks are making waves, the real question isn’t how many accounts they’re opening — it’s what kind of accounts they are, and how they compare to the traditional full-service checking relationship that community-based financial institutions excel at cultivating.
What’s a checking account anyway?
A key issue with the research quoted above lies in the definition of “checking account.” As outlined in the Payments in Full Substack analysis, this research’s definition of a checking account includes not just traditional bank accounts but also stored-value accounts and person-to-person payment platforms like PayPal, Venmo and Cash App. While these platforms facilitate payments, they are fundamentally not standalone checking accounts. They typically lack adoption of features like bill pay, direct deposit and consistent debit card use —and all of these are what make an account the primary operating account for a consumer household or business.
This broader definition inflates the fintech figures and muddies the competitive landscape. Yes, these accounts might absorb some low-dollar transactional volume, particularly for online purchases or P2P transfers, but they don’t offer the comprehensive banking relationship that community-based financial institutions build with their customers.
Adding to the confusion is the discrepancy between various data sets quoted from the same research providers. A more recent report published in April 2025 in collaboration between Alkami and Cornerstone states that “digital checking account openings as a percentage of total checking account openings increased in 2024 to 21%, up from 16% the previous year.” This may be closer to the real number; we assume that the 21% figure includes digital accounts opened at traditional institutions, not just neo or digital banks.
The neobank account: volume without depth
Looking deeper into the Payments in Full critique of the research data, one finds the majority of these fintech accounts are shallow in terms of engagement. Many do not carry significant balances or involve consistent debit card activity. In fact, most of these accounts appear to be supplementary in nature — used for a specific purpose such as e-commerce or as secondary accounts, not as the customer’s primary financial hub.
This insight is critical. While fintech firms may lead in raw account openings, they are not displacing primary banking relationships at scale. In fact, even the Cornerstone study notes that fewer customers across all age groups consider their digital bank account as their “primary” checking account. This suggests that while fintechs are gaining reach, they are not necessarily gaining relevance in the full-service banking space.
How large banks and neobanks reward to win market share
What’s clear is that both large banks and digital players are using aggressive tactics to win new accounts. Large banks frequently rely on large cash incentives — $200, $300, $900 or more — to attract new checking and savings account customers. Neobanks, meanwhile, often pair high-yield savings accounts with their checking offerings and capitalize on app-based convenience and mobile-first design.
While these strategies generate impressive numbers on the surface, they also tend to attract rate-chasers and transactional users — customers who are unlikely to develop a meaningful or lasting relationship with the institution. This again highlights the difference between merely acquiring an account and acquiring a loyal primary relationship.
The community bank advantage
Community-based financial institutions should not try to outspend megabanks or out-tech fintech providers. Instead, the opportunity lies in playing to their strengths: personalized service, deep community roots and a human connection that digital-first institutions cannot replicate.
Community banks can still win the battle for primary checking relationships by consistently reinforcing their unique value. Aligning execution at their account opening channels (branch or digital) with an “always-on” marketing approach is essential. It is equally crucial to provide a competitive product, equip team members through training and coaching and adopt messaging that reminds people why community banking is different and better. These are the secrets to successfully growing primary relationships.
Moreover, innovative grassroots campaigns (like “sprint” events that reward customers for opening accounts or providing referrals) can enhance this success by energizing local teams and driving organic growth in a way megabanks could never replicate at scale.
Beyond surveys and speculative data, it’s useful to look at verified performance metrics from real-world community banks. For example, data from the 2,500 branches operated by our partners — based on actual account openings, not projections or surveys — shows that median primary checking account openings per branch per year has fluctuated only 5% over the last couple of years. A 5% dip is relatively minor and likely attributable to the marketing blitzes and offers by large banks and neobanks. Yet, it also demonstrates the enduring strength of community-based depository institutions, particularly those that have maintained strategic marketing efforts and focused on core consumer and business needs.
What’s more telling is that these accounts, unlike many opened with fintech firms, are primary in nature — funded, active and integral to consumers’ financial lives. That’s a critical differentiator, and one that doesn’t show up in flashy fintech adoption headlines.
Strategy over hype
The competition for checking accounts is real — but not in the simplistic doom-and-gloom way some publications suggest. The challenge for community banks is not to chase every new trend, but to deepen their roots, refine their strategies, and remain constantly visible in their communities. By leaning into service, relationships, and community commitment — paired with effective marketing and modest incentive programs — community banks can continue to thrive with core checking products.
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Achim Griesel is president emeritus and a board member at Haberfeld, a data-driven consulting firm specializing in core relationships and profitability growth for community-based financial institutions.
