Becoming First Choice: How credit unions can turn loyalty into love

By Baron Conway, Chief Strategy Officer, Finalytics.ai

There’s a (not so) quiet challenge facing credit unions: many may have earned their members’ trust, but not their full commitment. They may be the “nice” place a member started with – but not necessarily the one they turn to for major life decisions.

In a world where people spread their financial lives across a dozen apps, platforms, and institutions, becoming a member’s primary financial institution, or even just getting more wallet share, isn’t just about better rates or slicker apps. It’s about emotional connection, brand relevance, and the ability to deliver on a deeper “why.”

As Simon Sinek says, “People don’t buy what you do; they buy why you do it.” In other words, people connect not to products or features, they connect to purpose. And the most powerful brands, from Apple to Nike, build loyalty not through features, rather through emotion and identity.

Credit unions were born with purpose at their core. And yet, to unlock true loyalty and wallet share in today’s world, that purpose must be rediscovered, modernized, and personalized – especially across digital channels.

Why Satisfaction Isn’t Enough

It’s tempting to assume that satisfied members will stick around and deepen their relationship. However, satisfaction is a poor predictor of loyalty. People may like their credit union, yet still open a high-yield account with a fintech, apply for a card from their airline, or refinance through a slick startup app.

The challenge is that satisfaction is passive. Connection is active – and it’s what drives advocacy, retention, and growth.

True loyalty is earned when members see their credit union not just as a place of convenience or to manage money, rather as a partner in their life’s journey.

This requires shifting from product-centric thinking to people-centric engagement.

Start With Why – And Make It Real

Most credit unions have a powerful origin story – serving teachers, tradespeople, and communities overlooked and ignored by traditional banks. Yet too often, that story lives in a dusty "About Us" page or a brand book.

To resonate today, that purpose must be translated into experiences that feel:

• Relevant to members’ lives
• Visible in everyday interactions
• Consistent across all touchpoints
• Embraced and lived versus words on a page

This is where Simon Sinek’s Start with Why becomes operational: your why becomes the North Star guiding how you design experiences, how you show up in digital channels, and how you demonstrate understanding, care, and commitment in every interaction.

“Show Me You Know Me”: The Power of Personalized Moments

Members (and prospects, and all of us for that matter) want to feel seen. And in a sea of generic financial services, the brands that win are the ones that create “show me you know me” moments – those subtle, powerful cues that say: we understand you and we care.

And in a financial world increasingly dealing with embedded finance, open banking, and Agentic AI, where your brand gets increasingly disintermediated and commoditized, it is more important than ever to connect to your” Why”, as your “Why” starts to equal trust.

There are a multitude of ways to do this, such as:

• Tailored savings goals that adjust based on spending patterns
• A proactive message during the back-to-school season offering budgeting tools to parents
• Recognizing life events – like a new address or car payoff – and offering timely, relevant options
• Knowing that an existing member is researching and shopping on your marketing site, and providing them with a relevant personalized experience

These are more than tech features. They’re proof that the credit union cares enough to pay attention.

And while the branch and contact center are important, digital personalization is where this comes to life at scale. With the right data, systems, and intent, credit unions can deliver emotional relevance – not just marketing automation.

Let’s be clear, personalization done right isn’t creepy or transactional. It’s about contextual relevance. It’s helping before being asked. It’s offering value before asking for action.

Bringing Purpose to Life in Digital

For many members, your marketing site, app, or online banking is the credit union, is the face (and soul) of your brand. So, it’s essential that digital channels aren’t just functional – they’re expressive of your brand purpose.

Ask yourself:

• Do your digital experiences reflect who you are, or just what you offer?
• Are you delivering the same warmth and relevance as a great in-branch conversation?
• Are you designing journeys that reflect real-life moments, or just standard workflows?

Purpose, brand, and personalization should converge in your digital experiences - not as overlays, rather as core design principles.

Done right, digital becomes more than a service channel; it becomes your growth engine – inviting deeper engagement, increasing share of wallet, and strengthening your position as the first call, not the fallback.

Loyalty, Reimagined: The Growth Imperative

Let’s be clear: this isn’t just about brand feel-good. It’s about business performance.

• According to a Harvard Business Review study, emotionally connected customers are more than twice as valuable as highly satisfied ones. They spend more, stay longer, and are more likely to recommend the brand to others—driving long-term growth and advocacy (Magids, Zorfas & Leemon, HBR, 2015).
• Research from Deloitte Digital shows that purpose-driven companies grow three times faster on average than their competitors and enjoy higher workforce and customer satisfaction. (Deloitte Insights, “Purpose is Everything,” 2019)
• McKinsey found that personalized digital experiences can increase customer acquisition rates by up to 20%, and boost customer satisfaction by 10-30% – demonstrating that personalization isn’t just a CX tactic, but a revenue growth lever. (McKinsey & Company, “The value of getting personalization right,” 2021)

By focusing on purpose, leading with why, delivering emotional value, and bringing that to life through relevant, personalized digital experiences, credit unions can unlock what every financial institution needs: growth that’s sustainable, scalable, and rooted in trust.

Because in the end, people don’t stay because you’re convenient. They stay because you matter.

Connect with Finalytics.ai to learn more.

Sources:
1. Magids, S., Zorfas, A., & Leemon, D. (2015). The New Science of Customer Emotions. Harvard Business Review.
2. Deloitte Insights. (2019). Purpose is Everything: How Brands That Build Emotional Connection Drive Business Success.
3. McKinsey & Company. (2021). The value of getting personalization right – or wrong – is multiplying.