SEATTLE — Banks and credit unions face a changing deposit environment in the second half of the year as uncertainty over interest rates, growing competition from stablecoins and the increasing use of artificial intelligence in personal finance reshape funding strategies, according to an analysis from CD Valet.
The Seattle-based CD marketplace, which connects consumers with certificate of deposit offerings from financial institutions, said recent developments in regulation, technology and consumer behavior are creating new challenges for deposit gathering.
Stablecoins Seen as Emerging Competitor
According to CD Valet, stablecoins are moving from a theoretical concern to a more immediate competitive threat as lawmakers advance legislation aimed at creating a regulatory framework for the digital assets.
CD Valet pointed to congressional efforts including the GENIUS Act and proposals such as the Clarity Act as signs that stablecoins could become more widely accepted and potentially function in ways similar to interest-bearing financial products.
The company said the issue comes as approximately $2.37 trillion in CDs are expected to mature and be repriced over the coming months, creating what it described as a key moment for banks and credit unions seeking to retain deposits and attract new funds.
At the same time, stablecoins are emerging as an alternative vehicle for holding liquidity, according to CD Valet, which said a more favorable regulatory environment could increase their appeal to consumers and businesses.
As a result, financial institutions will need to strengthen their value proposition for depositors to remain competitive, the company said.
Rate Outlook Creates Pricing Challenges
CD Valet also said shifting expectations for interest rates are forcing institutions to reassess deposit-pricing strategies.
The company reported that approximately 71% of CD rate changes during the past 30 days were increases, compared with 29% that were cuts, signaling a reversal from earlier expectations that rates would continue to decline.
While large rate swings appear unlikely, CD Valet said many banks and credit unions are making targeted adjustments to remain competitive, particularly in short-term products such as six-month CDs, which have seen the greatest number of rate increases.
The company added that CDs offering yields of 4% or higher, which had declined earlier in the year, have been steadily rebounding since March.
Those developments suggest a rate environment that is relatively stable but increasingly competitive, according to CD Valet.
AI Changing Consumer Behavior
The company also said artificial intelligence is beginning to play a larger role in how consumers manage savings and investment decisions, creating new considerations for deposit-gathering strategies.
According to CD Valet, AI-powered financial management tools are increasingly capable of notifying consumers when CDs are approaching maturity, identifying higher-yield alternatives and, in some cases, automating reinvestment decisions.
As those tools become more widely used, institutions will need to place greater emphasis on transparency, real-time rate information and digital distribution channels to ensure their products are visible to consumers, the company said.
“As the market shifts, visibility and access to competitive rates has never been more critical,” Mary Grace Roske, head of marketing and communications at CD Valet, said in a statement.
Secret to Success
Roske said success in attracting deposits will depend not only on offering competitive rates but also on product design, digital visibility and an institution’s ability to respond to emerging influences such as AI and stablecoins.
“The institutions that take note of these trends and adapt quickly will be best positioned to capture deposits in the second half of the year,” Roske said.
