Deposits

An ex-banker running for governor has proposed the idea. It's a political perennial, but industry officials are nonetheless raising concerns.

A recent tribute to Maggie Walker came more than a century after she founded St. Luke Penny Savings Bank in Richmond, Va. But it fittingly coincided with the first anniversary of the #BankBlack movement and offers a counterweight to the racial strife that just occurred less than 100 miles away in Charlottesville.

People’s United recently won the deposit business of the states of Massachusetts and Vermont, punctuating a multiyear plan to expand in government banking. But it’s a hard niche to succeed in, and, as other banks can attest, it can invite controversy.

Many banks are adopting an “it takes money to make money” approach, paying more interest on deposits in exchange for loan growth, fee income and customer retention.

The global bank’s U.S. unit has bounced back, aided by growth in deposits and wealth management profits as well as a focus on international customers. A $125 million investment in tech and branches hasn’t hurt either.