LOUISVILLE, Ky.—It’s never been more important for credit unions to focus on relationship building, says one financial institution advisory firm, which cites new data that reveal there may be a disconnect between FIs and their account holders.
White Clay is advising credit unions to prioritize relationships in 2025—and not to be misled by their current practices.
“Financial institutions’ business models are shifting. While gathering deposits remains a top priority for banks and credit unions in 2025, they must also balance this focus with the growing demand for lending. To stay competitive, financial institutions must rethink how they approach customer relationships, moving from a transactional to relationship-based model,” White Clay said.
While many financial institutions believe they already operate this way, a recent White Clay survey reveals a disconnect: 68% of FI users do not feel known by their primary institution, and nearly a third (31%) feel like just another account number.
“This highlights customers’ need for personalized service and financial guidance, with the same survey reporting that half of FI users would consider switching their primary institution if another bank or credit union offered more personalized financial guidance,” the company said.
"The banking landscape is evolving rapidly in response to economic shifts and consumer behaviors,” said Mac Thompson, CEO and co-founder of White Clay. “Financial institutions are juggling numerous priorities, for example, investing in treasury management solutions to attract new customers, refining balance sheet strategies, and finding ways to grow loans and deposits. At the same time, they are competing for customers’ operating accounts and exploring effective incentive strategies. With all of these factors at play, it’s time for institutions to return to the basics: building and strengthening relationships.”
To win and retain customers’ operating accounts, banks and credit unions need to know how consumers perceive and engage with them, White Clay said.
“This involves having a complete view of customer relationships to find ways to strengthen them. For example, institutions can use this data to deploy different relationship management strategies based on factors like segments and primacy,” White Clay said.
“With this visibility, institutions can then create intelligent, targeted, granular pricing strategies and meaningful incentive programs that drive profitability,” White Clay said. “By rewarding bankers for addressing consumers overall relationship needs — rather than simply selling individual products — banks and credit unions can foster long-term loyalty. This holistic approach enables bankers to move beyond transactional interactions and become trusted advisors. Additionally, these programs provide valuable metrics and training opportunities to help bankers better understand and serve their customers’ needs.”