Banking's perfect storm: New rates, new rules, new opportunities
Happy Tuesday. Spring might be starting, depending on where you are in the country. And for some, you’re dealing with loads of snow, rain, and likely everything in between. But there’s one thing we can all get behind–Daylight Saving Time.
?Yes, Sunday marked the start of “spring forward” season across the United States. Though there are many mixed feelings on the topic, we can all rest assured the sun will rise again and our days ahead will get longer and longer until the Fall.
?So let’s put on our best smile and charge forward into a great month ahead.
?Let’s get into this week’s updates.?
Churn happens, Can we lessen the impact?
Using Analytics to Combat the Silent Member Exodus
Is your credit union experiencing the slow drip of member attrition? CEFCU found a clever solution using analytics and AI to identify at-risk members before they even know they're heading for the door.
Their brilliantly simple approach: use AI to identify members likely to leave, then send unobtrusive surveys asking for feedback.
The results?
Members who received this outreach had 70% lower attrition rates than the control group (that's a 400% ROI!) and actually deepened their relationships with increased direct deposits and higher transaction activity.
?? Read the full article to discover how combining smart analytics with genuine member outreach can transform your retention strategy
Spreadsheets in 2025?
Consumers Are Fed Up with Financial App Overload
Turns out your consumers are feeling overwhelmed by too many disconnected financial apps. They're actually reducing the number of finance apps on their phones, going back to spreadsheets (24% and growing!), and craving financial tools that understand their complete picture.
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The good news? A whopping 55% of consumers would happily give you access to more of their financial data if it meant better experiences. They WANT you to use their data for personalized insights.
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But there's a catch: they'll only share when they trust you'll both protect their data AND put it to good use. Generic marketing won't cut it anymore.
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?? Ready to win the app consolidation game? Check out the full report to become your members' go-to financial hub!
Time to Dust Off Those Growth Strategies! The Yield Curve is Finally on Your Side
After more than two years of dealing with an inverted yield curve, community banks are finally seeing a window of opportunity. The 2s/10s Treasury spread has climbed to about 40 basis points—a massive improvement from its recent low of -108 basis points.
Here's the exciting part: spread opportunities for growth strategies are sitting at 115+ basis points right now. That's in the 89th percentile since 2019!
Michael Benedict points to agency mortgage-backed securities (MBS) as today's MVP, offering that sweet combo of strong valuation, moderate duration, and reliable performance across various rate scenarios.
?? Check out the full article to see if it's time to leverage this steepening yield curve!
Still chasing paper?
eSignatures Are Your Secret Weapon
Let's face it — consumers don't want to drive to your branch, wait in line, and sign stacks of papers. They expect seamless, on-demand experiences like they get everywhere else!
eSignatures transform how consumers interact with your institution, letting them complete transactions anytime, anywhere, on any device.
Imagine your member sitting at their kitchen table at 9pm, finalizing that auto loan in minutes instead of scheduling time off work to visit your branch.
The best part?
While your consumers enjoy this convenience, you benefit from faster closings, reduced abandonment rates, and built-in compliance with the same legal protection as traditional signatures.
When choosing a partner, look for banking-specific platforms with intuitive interfaces that make signing effortless for even your least tech-savvy customers.
?? Download our Banker's Guide to eSignatures to transform your institution from paper-dependent to digitally dynamic!
Not just lip-service.
Is Your Credit Union Just Talking About Purpose, or Actually Living It?
If your leadership team can't confidently answer "WHY do we exist?" (and no, "to make money" doesn't count!), you might have some work to do. Callahan & Associates has mapped out an 8-step journey to transform your credit union from purpose-curious to purpose-powered.
Did you know employees consider purpose TWICE as important as compensation?
Your team members are craving meaning even more than that annual bonus!
Most credit unions get stuck leading with products instead of emotion. Check your website — are you showing rates or helping members feel financially confident?
The magic happens when purpose drives everything, from how you measure success to how you talk about your services.
?? See Callahan's Purpose Journey Map to chart your course!
Gen Z Has $360 Billion in Spending Power – Are You Speaking Their Language???
Today's Gen Z customers (ages 12-27) aren't just scrolling TikTok – they're opening bank accounts at a rate of 4 million per year! But connecting with these digital natives means understanding what keeps them up at night.
Their top financial concerns?
Building credit (despite already averaging a 680 FICO score!), paying for college, managing growing debt loads, buying their first home, and yes – even retirement planning (the average Gen Zer starts saving at just 22!).
The catch? 99% used a mobile banking app last month, while only 16% visited a branch.
To win them over, your digital experience must be lightning-fast, hyper-personalized, and available exactly when and where they need it.
?? Read the full article for specific strategies to help Gen Z achieve their financial goals while building lasting relationships with your institution!