Its $10 million marketing budget favors early relationships, with long-term value tied to evolving needs.

Matching neobank features isn't enough to reverse the attrition, but AI can help these FIs differentiate their support.

Community financial institutions face a pivotal moment as consolidation accelerates, customer expectations rise, and technology reshapes competition. Institutions that adapt while preserving their relationship advantage will be best positioned to grow.

By tying cards to local rewards, credit unions can strengthen their relationships with members, SMBs.

A new consortium won't have its technology in place until at least 2027.

Easier access to AI and cloud tools makes local expertise—not scale—their strongest competitive advantage.

Thinkwise Credit Union selected InvestiFi to embed digital investing in online and mobile banking, giving members the ability to invest on the credit union’s digital platform. For FIs without dedicated investing tools, embedded tools are a way to defend deposits as D2C investment platforms and roboadvisors move into banking. FIs can quietly meet rising customer expectations by plugging investing into digital channels generally focused on basic banking services.

Technology modernization and attracting younger consumers are key to community banks’ survival over the next decade, according to a discussion between Treasury Secretary Scott Bessent and Federal Reserve vice chair for supervision Michelle Bowman at a Fed conference. Community banks face existential threats. Consolidation in the community banking market has been substantial. Community bank leadership is aging, and banks’ small scale makes it difficult to compete in a digitally interconnected banking market. Their strategies need to account for what’s changing.

Deposits are moving out of community financial institutions (FIs) and into crypto exchanges—from 1% per month 18 months ago to 5% today, per PYMNTS. Instead of chasing these funds by trying to become more like crypto apps, community FIs are increasingly offering stablecoin products. Smaller FIs must not lose sight of what makes them stand out: human centricity, local knowledge, and customer service. By incorporating new technologies and digital currencies into their everyday offerings—instead of reinventing themselves—FIs can remain grounded in those differentiators while still potentially appealing to digital-first demographics.

Community banks and credit unions face rising delinquencies, margin pressure, and a disconnect with young consumers. As M&As accelerate, institutions must modernize tech and retain local trust to survive.

The strategy: We’ve covered how smaller financial institutions (FIs) sometimes lose sight of differentiators in marketing campaigns when they focus on being “just as good” as bigger competitors. And The Financial Brand recently highlighted a similar trend of community banks straying from focusing on their community-centric strengths in marketing campaigns. So, what? It is important for smaller FIs to prioritize and improve their digital experiences. But for the time-being, they likely won’t beat bigger FIs and fintechs at their digital game. Instead, according to The Financial Brand, the true strength of community banking is its people. FIs should involve their staff in the customer journey, prioritizing quick human follow-up on leads over marginally improving online forms. This people-first approach fosters deeper relationships. In practice, it involves building experiences—both digital and in-person—that keep customers connected to team members who know them personally.

The news: Virtually all community bank leaders (99%) see embedded finance as important for their institutions' long-term survival, with 60% considering it extremely important, per a recent study by Treasury Prime. Our take: Embedded finance is a popular and effective avenue for community banking growth—if pursued with careful consideration and a priority on compliance. And there's an opportunity to maximize marketing opportunities when entering such partnerships.

The news: Zelle significantly increased its network in late 2024 and early 2025, adding 178 financial institutions (FIs) in six months compared to just 69 the prior year, per American Banker. Our take: Zelle’s expansion goals are clear, but the fintech could hit a ceiling with smaller FIs if it doesn’t mitigate the concerns raised by Family First Credit Union. Ultimately, Zelle's long-term success hinges on balancing its drive for network ubiquity with robust protections and equitable partnerships for all participating FIs.