The Strategy Big Banks Don’t Want You to Know About

Community banks and credit unions face mounting pressures—from economic uncertainty and rising deposit costs to customer expectations for personalized experiences. The answer isn’t to compete with big banks on scale or fintechs on speed—it’s to outsmart them with vertical banking.

This edition of Nymbus Next unpacks how focusing on specific industries, demographics, or communities can turn these challenges into opportunities. From the gig economy to Gen Z tradespeople, vertical strategies are driving growth where it matters most. Through insights from three must-hear podcasts, plus real-world success stories like Vantage West’s HUSTL, we’ll show how community institutions are not just surviving, but leading.

If growth is the goal, verticalization is the strategy. Let’s get started.

As 2025 approaches, one question looms large: where will growth come from? For many banks and credit unions, the answer lies in verticalization—focusing on specific customer segments or industries with tailored products and services.

It’s a proven strategy. Institutions like U.S. Bank and Capital One have built loyalty and growth by creating specialized offerings for industries like healthcare, gaming, and agriculture. They’ve shown how aligning with the unique needs of specific groups can make banks indispensable again, especially as fintechs claim ground in payments, lending, and deposits.

it’s not just the big players who are finding success. Community banks and credit unions have an advantage: they can move faster, adapt more nimbly, and outsmart the competition with hyper-localized or vertical offerings.

Take Vantage West Credit Union’s HUSTL, for example. In partnership with Nymbus, they launched a specialized brand to meet the unique financial needs of freelancers and gig workers—an underserved but growing vertical. By addressing challenges like irregular income and savings management, HUSTL demonstrates how institutions of any size can tap into emerging markets.

Another great example is Michigan State University Federal Credit Union (MSUFCU). Recognizing an opportunity to serve alumni and students outside their core charter, they introduced AlumniFi, a vertical-focused brand offering tools for graduates to build strong financial foundations. From targeted savings accounts to debt payoff features, MSUFCU has shown how serving niche communities drives growth and deepens relationships

So, where do you start? It begins with understanding your market. What industries or communities already rely on your institution? What gaps in their financial needs could you fill? Your strength lies in knowing your customers better than anyone else.

Creating Brands That Speak to People

In CU on the Show, John Janclaes, President of Nymbus CUSO, shared how credit unions are driving growth by focusing on verticals designed to meet the specific needs of their members. His key insight? Success requires moving beyond a transactional, vendor-based approach to embrace true partnerships.

A powerful example of this is Gesa Credit Union. With over 285,000 members, Gesa partnered with Nymbus to develop a digital-first strategy targeting multiple underserved markets, focusing on unmet needs such as early access to pay and automated savings tools. These "hooks" are designed to make their offering stand out by addressing real challenges their members face and delivering solutions tailored to their lives.

By identifying and addressing specific gaps in the market, Gesa shows how community institutions can lead with intention and strategy. Listen to John’s episode here.

Proof in Action: HUSTL

One of the best examples of verticalization in action is Vantage West Credit Union’s HUSTL. Partnering with Nymbus, they launched a brand designed for gig workers—meeting their need for flexible, tailored financial services.

The results speak for themselves. HUSTL has helped Vantage West not only serve an emerging market but also position itself as a forward-thinking institution in a competitive space. This kind of strategic focus shows how even smaller institutions can claim their share of new markets.

For a deeper dive, listen to Rob Hoyle, CIO of Vantage West Credit Union, share his perspective on their journey. Check it out here.

What’s Next?

Verticalization isn’t a trend; it’s a shift in how institutions approach growth. If you’re ready to explore what a vertical strategy could look like for your bank or credit union, Nymbus is here to help.

And don’t miss our upcoming white paper, getting released later this month. It’s packed with insights to help you identify the right opportunities and take action.

Growth starts with asking the right questions.

The answers could define your 2025—and beyond.