Old National Bank Business Model Canvas

Attracting stable, low-cost deposits underpins funding, with Old National holding over $40 billion in customer deposits in 2024 to support lending and liquidity. Cash management, payments and liquidity solutions—corporate sweeps, ACH and treasury services—deepen relationships and drive fee income. Pricing, product design and analytics optimize mix and duration. Digital onboarding and KYC sustain compliance and client experience.

Originating and servicing commercial, consumer, and mortgage loans drive asset growth and net interest income at Old National, with lending remaining the primary revenue engine in 2024. Rigorous underwriting, documentation, and portfolio monitoring control credit risk through standardized scorecards and stress testing. Specialized middle-market and real estate lending teams deliver tailored solutions and relationship management. Secondary market sales and interest-rate hedging optimize capital usage and rate exposure.

Stable retail and commercial deposits lower Old Nationals funding costs and, as of 2024, remain the bank’s primary funding source through core relationships and branch networks. Access to the Federal Home Loan Bank, correspondent lines, and capital markets provides flexible wholesale liquidity and term funding. Deposit analytics drive beta and duration management while conservative liquidity buffers are maintained to support stress scenarios and growth.

Old National’s branch network—over 200 locations across eight Midwestern states—provides local presence and a steady customer acquisition funnel. Deep community ties and sponsorships amplify regional brand equity and trust. Physical branches enable complex transactions and tailored small-business services. Targeted consolidation since 2022 has trimmed overlap to boost efficiency while preserving market coverage.

Clients get relationship banking with local decisioning: bankers who know regional markets provide faster credit approvals and tailored structures, reducing time-to-funding. Community involvement—Old National reported $10.4M in charitable giving in 2024—signals long-term commitment. Trust and responsiveness lower switching friction and deepen retention.

Old National integrates deposits, lending, treasury, wealth and mortgage into bundled offerings across 200+ branches and digital channels, simplifying vendor management for clients. Single sign-on and unified servicing streamline workflows and reduce administrative touchpoints. Cross-functional teams coordinate outcomes, improving speed-to-decision and client retention.

Dedicated relationship managers coordinate credit, deposits and treasury services for business clients, providing continuity and advocacy across Old National to reduce silos. Regular reviews align solutions to evolving goals and risk profiles, while clear escalation paths speed problem resolution and minimize operational friction. RMs act as single points of accountability to streamline cross-product delivery.

Clients interact with Old National via branch, phone, chat and digital messaging, with omnichannel routing ensuring consistent service levels across touchpoints. Case management tracks issues end-to-end and analytics—leveraging 2024 customer data—identify service gaps for proactive fixes. The bank, with roughly $42 billion in assets in 2024, uses these insights to reduce repeat contacts and improve resolution times.

Branches handle onboarding, advisory, and complex transactions, leveraging staff expertise to close higher-value commercial and wealth relationships; Old National operated approximately 200 branches in 2024 and managed over $50 billion in assets. Appointment scheduling aligns specialist availability with customer needs, improving conversion and cycle time. Community presence in Midwest markets boosts brand visibility and trust. Onsite events and financial education workshops drive local acquisition and referrals.

Online and mobile platforms provide Old National 24/7 access to core services, supporting payments, remote deposit capture and digital account opening; over 60% of customers interact via mobile channels as of 2024. Multi-factor authentication, end-to-end encryption and behavioral analytics secure sessions and data. Continuous UX updates and A/B testing align interfaces with rising client expectations and engagement metrics.

Checking, savings, cards, and personal loans meet daily needs for retail consumers across income tiers, supported by Old Nationals product suite and branch network of around 200 locations across 11 Midwestern states. Digital-first users prioritize convenience and low fees, with widespread mobile adoption driving service design. Seniors and students require tailored features and access options. Fraud protection and 24/7 support remain universal priorities.

Old National supports small businesses and entrepreneurs with deposit, lending, and merchant services that enable growth, while cash-management lite tools streamline payroll, receivables, and payments. Clients value bank guidance on credit structuring and risk mitigation delivered through relationship managers and credit teams. Fast onboarding and simplified digital workflows are core drivers of small-business satisfaction.

Deposit betas and mix drive Old National’s cost of funds, with 2024 deposit beta around 40% as customers repriced into higher-yield products and core checking share stabilised. Wholesale borrowings, near 10% of funding in 2024, act as a backstop for liquidity during seasonal outflows. Hedging programs (interest-rate swaps) blunt volatility but add all-in cost, and rate cycles in 2024 shifted NIMs materially—moves of ~100bps in policy rates compressed or expanded margins markedly.

Salaries for bankers, advisors, and risk teams constitute a core cost line at Old National; in 2024 the bank employed about 3,900 team members, driving material payroll expense.

Variable pay and incentives are structured to reward prudent growth, tying bonuses to credit quality and return metrics to align behavior with risk limits.

Benefits, training and development budgets—including mandatory compliance and advisory upskilling—support retention and service quality, representing a significant recurring investment.

Workforce planning is calibrated to branch demand and digital channel growth, shifting headcount toward advisory and risk functions as client needs evolve.

Net interest income, driven by a spread between asset yields and funding costs, was central to Old National’s 2024 revenue mix, with net interest income reported at $1.8 billion and a net interest margin near 3.20%, reflecting higher loan yields versus deposit costs. The bank’s mix of commercial, consumer and mortgage assets (commercial loans ~45% of loans) shifts sensitivity to rate moves. Active ALM adjusted duration to manage rate risk while a securities portfolio (~$6.5 billion) supplied liquidity and supplemental income.

Treasury management fees from ACH, wires, positive pay and sweeps provide stable noninterest income for Old National, with activity-linked volumes rising in 2024 as client payments and deposit balances grew. Bundled cash-management packages increase customer stickiness and cross-sell rates. Pricing is set to reflect value delivered and cost-to-serve, while nominal fee revenue scales directly with client transaction volumes and deposit levels.