The Cornerstone Performance Report for Banks 2019, the thirteenth study in a series published by Cornerstone Advisors, found that despite mid-size banks making strides in many key areas, its goal of seriously focusing on deposit growth fell short in 2019.

Thirty-two banks with median assets of more than $4 billion participated in the study, which collected nearly 300 spending, operations and staffing benchmarks across dozens of bank areas. The study’s findings when compared to the firm’s 2017 report showed that bank assets grew 30%, staff grew by 5%, assets per employee increased 18%, assets grew 23%, return on assets improved 19%, but online deposits only grew 2.17%.The report indicated that mid-size banks are slow to embrace digital delivery and higher productivity through automation. "Even with a commercial focus, mid-size banks have hundreds of thousands of 'eyeballs' logging into mobile and online banking each month, but these same institutions are doing very little to leverage or monetize this activity from a sales or customer engagement standpoint," the report stated in a recent press release

There are specific points, the report highlights, that prevent banks from increasing its online deposits that include low interest rates and the lack of a deposit price war, compliance and security issues, "clunky” first-generation technology solutions and inadequate marketing promotions.

The report concludes by stating, "Bankers need to make sense of the environment and how and where they want to compete in that environment."