UBS has issued a warning that there is a 93% chance of a US recession this year, per Moneywise. The prediction is based on data such as personal incomes, consumption, industrial production, and employment rates. When consumers feel stressed, they’re more likely to turn to advice that promises to fix their problems quickly. But much advice like this on social media is misleading—or downright dangerous financially. FIs are well positioned to combat misinformation and share more trustworthy advice via social media on navigating economic challenges. Advice could center around specific products.
JPMorgan Chase and Plaid have renewed their data access agreement, resolving a dispute that arose when the bank started charging fintechs for access to customer data, per PYMNTS. The new deal includes a pricing structure but reportedly won't result in new fees for Plaid customers. It’s noteworthy that JPMorgan and Plaid reached an agreement while the Consumer Financial Protection Bureau (CFPB) is still collecting public comments on a new iteration of its open banking rule. The agreement may influence the rule’s final outcome and encourage other financial institutions who are considering similar moves.
In today’s episode, we talk about how stablecoins differ from the crypto hype cycles of the past like bitcoin and NFTs, the risks stablecoins introduce for traditional financial institutions, and from the consumer side, do people actually want or need stablecoin payments. Join the discussion with host and Head of Business Development, Rob Rubin, Senior Analyst, Grace Broadbent, Vice President of Content, Suzy Davidkhanian, and Principal Analyst, Tiffani Montez.
Santander’s Bank of Antandec UK advertising campaign featuring the iconic British TV broadcasting duo Ant and Dec has concluded after six years, per Little Black Book. The series of 15 ads followed the Bank of Antandec as it humorously and unsuccessfully tried to compete with Santander’s products. By investing in a long-running, character-driven narrative, Santander put on a show and achieved a level of engagement and memorability that a simple product-focused ad could never achieve. It also showed consistency by building and maintaining its brand voice over the span of the campaign.
The Federal Deposit Insurance Corporation (FDIC) has proposed new rules updating the requirements for displaying the official FDIC sign on digital platforms, per Davis Wright Tremain LLP. Ultimately, these changes are a win for FIs and their customers. The current, often-confusing signage can lead to confusion about how customers’’ money is protected. By focusing the signage at the most relevant touchpoints—like logging in or opening an account—and requiring clear, consistent warnings for uninsured products, the FDIC is making it easier for consumers to make informed decisions about their money.
Gen Z’s recent banking and payments behavior shows they are integrating cryptocurrency into their normal banking habits. Their widespread adoption of cryptocurrency for transactions and investment signals a critical challenge for traditional banks. Meanwhile, fintechs and other nontraditional platforms are targeting these younger customers with in-demand products. Banks must embrace this shift by offering crypto-related products and services and integrating them seamlessly into core offerings. This presents an opportunity for banks to innovate, build new revenue streams, and solidify their position as the central financial hub for the next generation of consumers.
Gen Zers are putting their careers and financial health above family, community, and love, according to a recent NBC poll. These results give financial institutions perspective around these younger consumers’ primary goals. They also highlight the importance of assessing and understanding the needs of individual customers. Some Gen Zers have already bought homes and started families but likely want to further improve their financial health and status. This points to the importance of life-stages banking, including personalizing recommendations for each individual customer. Most Gen Zers want products that help them set money aside and make it work harder for them.
According to a recent Bank of America survey and a KNPX News report, 55% of Gen Zers have more than one source of income. Products like side-hustle savings accounts help track multiple income sources, automate tax withholdings, and separate business expenses from personal finances. Banks must move away from the traditional model built around a single, consistent paycheck. This means offering flexible products that adapt to fluctuating incomes as well as considering customers’ overall financial health—including side-hustle income—when making lending decisions.
In today’s digital era, a bank’s internal culture is public-facing. Employee experiences quickly surface through reviews and social media, directly shaping customer trust and brand perception, per The Financial Brand. A stressed, disconnected, or toxic bank culture can undermine any marketing strategy, even if it’s creative and targeted at the right customers. Assessing and addressing culture issues should be a key step of looking holistically at customer acquisition and retention strategies. Anonymous employee polls can help banks identify potential risks to customer relationships.
Consumer prices in August rose at a faster pace than in July, while a weak jobs report showed rising unemployment, per the Bureau of Labor Statistics. This unsavory combination points to the Federal Reserve cutting interest rates at its September meeting next week. For customers, this is a double-edged sword. On one hand, a rate cut could make borrowing more affordable, potentially lowering the cost of mortgages, auto loans, and credit card debt. This could be a much-needed reprieve for households facing rising prices for everyday goods. On the other hand, savers would lower the interest they earn on savings accounts and certificates of deposit, and banks trying to offer the most competitive rates will be risking higher deposit costs. While lower rates might spur some demand for new loans, the primary impact will be a squeeze on banks’ profitability.
Open banking and its uncertain future in the US dominated discussions across FinovateFall’s 2025 agenda. Financial institutions (FIs) that already offer open banking capabilities—and those finding new ways to use open banking—will have a competitive advantage over those waiting for more clarity. It’s important to remember who owns the data in question—the customers. And the ultimate question FIs should be asking themselves is: How can they leverage that data to provide the best experience possible for their customers? While it’s unlikely that next steps will include fee-less transfer of this data, FIs must consider how their next steps into open banking can set them apart from the competition. For now, the most obvious step is letting customers manage which parties can access their data.
PNC Financial is on track to buy FirstBank for $4.1 billion. The deal would give PNC a significant presence in Colorado and Arizona, per AP News. Mergers and acquisitions (M&As) are reshaping US banking, with this deal following larger ones that reset what financial institutions expect federal regulators to approve. But all of these M&As show that large banks are scaling up to better compete with giants like JPMorgan and Bank of America. This consolidation among super-regional banks clearly signals that the regulatory environment is favorable for such moves. And we expect more of these types of deals in the near future.
Robinhood is having an incredibly high-growth year after reaching profitability in 2024, per ABC News. That’s because it’s regularly rolling out new products that are appealing to consumers. Some of the risks that Robinhood is taking are boosting its profitability, while others are causing regulatory headaches or legal battles. However, each new launch drives more traffic toward its all-in-one app, improving customer acquisition efforts. For example, new customers who want to try sports betting may stay for the cash delivery service or crypto products. While some products may not always succeed, the fintech’s strategy to keep trying new approaches could still land it with a growing super-app.
National Credit Union Administration's (NCUA’s) Q2 2025 report shows that US credit unions have successfully implemented growth and customer acquisition strategies over the last four quarters. As we covered in our “Community Bank and Credit Union Trend 2025” report, the industry has had no shortage of challenges, including difficulty acquiring and resonating with younger customers. But a 2.8 million member increase, potentially across various age groups,means their digital innovation strategies are working. To continue this trend, credit unions must maintain their level of digital investment while continuing to prioritize the human touch they’re known for. This is particularly important if they’re growing quickly through mergers and acquisitions.
The news: US consumers overall will slash their holiday spending about 5% this year, while Gen Zers expect to cut it 23%, per Inkl. Our take: We’ve seen this trend among Gen Zers in other areas of spending—such as prioritizing vacations over saving—meaning their habits are consistent. In preparation for the upcoming holiday season, financial institutions (FIs) can tap into this to demonstrate a deeper level of understanding of their Gen Z clientele. Last year we suggested marketing holiday budgeting tools. While that still holds, FIs should also customize the language of these tools to match customers’ actual goals. For example, instead of language about saving for the future, offer savings toward a goal that Gen Zers input themselves, such as a concert or vacation.
The news: Citi Wealth is collaborating with BlackRock to create a customized portfolio offering for its clients, per a press release. The new offering is scheduled to launch in Q4 2025 pending regulatory approval. Our take: Citi is leveraging BlackRock's scale and expertise to focus on its core strength: personalized, high-level advisory services. This is part of CEO Jane Fraser’s broader strategy to streamline operations and boost profitability in Citi's wealth management division. In addition, this move highlights the opportunities that partnerships create. In this case it allows Citi to offer more personalized services through a new platform as well as through the more efficient personalized guidance of experts. This follows the bank’s recent deployment of two new AI solutions that will supercharge client communications.
The news: U.S. Bancorp has restarted its digital asset custody services for institutional clients after the Securities and Exchange Commission (SEC) rolled back a rule requiring financial institutions (FIs) to hold capital for cryptocurrency-related activities, per Bloomberg. Our take: This development isn’t surprising given recent pro-crypto regulatory changes. A major FI like U.S. Bancorp diving back in shows there's a real business imperative too, driven by institutional demand. While crypto-native firms like Coinbase have dominated the custody space, the entry of banking giants will heighten competition in the market. While custodying is less risky than holding assets on the balance sheet, it still exposes banks to regulatory and reputational challenges. Even so, these offerings give banks a way to tap younger investors who have been eager for alternative products.
The news: After a five-year hiatus, JPMorgan Chase will once again offer HELOC loans, per Banking Dive. Why this matters: HELOCs tend to be a more flexible type of loan and often don’t have minimum loan requirements, per Mortgage Note. In a period when many customers are in need of fast, flexible cash, HELOC loans can help banks deliver. Not all banks that offered HELOCs pre-pandemic have relaunched them. But they should consider it: Banking customers are likely to continue feeling uncertainty about the economy and their financial futures in the medium term, and financial institutions that offer easier cash access to homeowners will reap more profits and customer satisfaction.
The news: Payments company Wise is exploring plans to become a full-fledged bank in the UK, per The Times. This shortly follows its application for a US banking license. Why this matters: Fintechs are increasingly applying for US licenses, taking advantage of expedited measures that once took years. The UK is seeing a similar trend: Wise joins fintechs including Starling, Monzo, and Revolut in applying for licenses (some successfully). Fintechs entering the traditional banking space could pressure incumbents and reshape the competitive landscape. Banking licenses would allow them to offer a more complete suite of services while maintaining their digital-first, customer-centric approach. Established players will need to adapt or risk losing a significant portion of the next generation of banking customers.