The findings: One quarter of Gen Zers in the UK have multiple bank accounts but only use one regularly, according to a recent study by Intuit Credit Karma. What this means for banks: Account-opening incentives are working, and FIs should continue to offer them to boost customer acquisition. However, they should also add parameters that require customers to remain active banking users or keep accounts for a certain period of time in order to qualify. The real win for banks is converting customers into primary users following the sign-up bonus. This requires a shift in strategy from acquisition to engagement. Banks must build a digital experience so valuable that Gen Zers use their accounts regularly even after the initial bonus has been spent. This means focusing on things that matter to them: Superior digital experience: A seamless, intuitive, and fast app is nonnegotiable. Clunky interfaces or slow load times will send them straight to a competitor. Personalized value: Offer tools that help them manage their money better, such as AI-powered insights, easy budgeting features, and integrated saving goals.

The news: Cogent Bank, a Florida-based community bank, is expanding its focus on a niche type of commercial real estate (CRE) financing—single-tenant net lease (STNL) properties—per American Banker. It created a new division and hired a former Bank OZK executive with over a decade of experience in this area to lead the charge. Our take: This strategy has offered smaller banks in particular a way to profit on CRE loans. While some community banks might hesitate due to lower yields compared to other loan types, the strong credit performance of STNL loans makes them incredibly attractive. But if a single tenant defaults or goes bankrupt, the lender faces a vacant asset and the burden of finding a new tenant. This can be particularly challenging if the property is highly specialized or difficult to repurpose. Furthermore, a nationwide focus requires a higher level of operational and underwriting expertise, which can strain a community bank's resources and force it into a highly focused corner.

The news: Despite lingering uncertainty from tariff wars, five of Canada’s Big Six Banks beat analyst expectations in Q3 2025, per Bloomberg. Our take: Strong Q3 results provide a critical opportunity for Canadian banks to proactively fortify their balance sheets against known future risks. While lower loan loss provisions signal a better credit environment, the lingering threat of rising unemployment means this may not last. Banks should use this period of outperformance to conservatively build reserves, tighten lending standards for higher-risk clients, and prioritize stability and risk management over short-term loan growth.

The findings: Financial institutions (FIs) that have enabled buy now, pay later (BNPL) for debit cards see increased card usage frequency, higher spending, and larger purchases, per recent equipfi analysis cited by The Financial Brand. Why this matters for FIs: The BNPL explosion is over, as user growth decelerates and the industry reaches maturation. But FIs can still find value in BNPL. By integrating BNPL directly into existing debit card programs, banks stand to increase card usage, strengthen customer loyalty, and boost revenues. This strategy also turns debit cards, a very traditional banking product, into something that can better meet consumer needs. Today’s banking customers crave flexibility—and it’s especially important to Gen Zers.

The news: Citi Wealth has launched AI-driven tools for employees aimed at improving client communication, per a press release. Our take: AI platforms will deliver the greatest impact when banks shift them from passive information repositories to active drivers of business growth. This will require integrating the tools with other systems. For example, an AI assistant could automatically draft personalized client emails in response to a market event identified by Advisor Insights. A human advisor could then review and send the emails. This level of integration would increase the speed of personalized outreach, giving banks a competitive edge in maintaining and growing client relationships.

The news: Revolut is exploring paths that can help it expand in the US banking industry. The company recently held talks with investment bankers about hiring them to advise on a potential bank acquisition, per Bloomberg. What it means for banks: Nationally chartered banks could see more interest from fintechs or international firms that want to follow Revolut’s path. And more licensed banks means more competitors—armed with not only the agility and digital innovation of a fintech, but also the physical footprint of the banks they’re acquiring. To combat the threat, banks will need to double down on their biggest strengths, including longstanding reputations, customer-centricity, and the personalized products and services that customers want most, like those we highlight in our “US Mobile Banking Emerging Features Benchmark 2025” report.

The news: The average VantageScore credit score dropped one point since last month, meaning the average customer’s creditworthiness is declining. And there are other signs of credit stress that should be alarming to banks. Our take: With the average credit score dropping and delinquencies rising across all tiers—including among historically reliable superprime borrowers—financial institutions (FIs) are facing a higher-risk environment. This requires a proactive approach to risk management. FIs should tighten their underwriting standards—particularly for mortgages and auto loans, which are showing the largest increases in late payments. In addition, FIs must proactively engage with customers to help prevent delinquencies from turning into defaults. By using data to identify at-risk borrowers and reinforce customer loyalty, FIs can reach out with support and resources like loan modifications or personalized financial guidance.