Content

Reducing Friction Is the New Revenue Strategy

Written by ADVANTAGE | Jan 20, 2026

By John Cohron, Chief Executive Officer, ADVANTAGE

Revenue has traditionally been treated as something to optimize after decisions are made. In 2026, that mindset not only limits growth but also creates risk.

Leading credit unions are discovering that revenue stability comes from reducing friction before it ever reaches the consumer.

Where Friction Really Lives

Friction isn’t just fees or policies – it’s uncertainty. It shows up when:

  • Decisions vary by channel or staff member
  • Outcomes feel unpredictable
  • Members do not fully understand what will happen next

When consumers are uncertain about how overdraft services work, confusion drives complaints and escalations, creating reputational risk.

The Shift from Reactive to Structured

Modern overdraft programs succeed when decisioning is:

  • Clear
  • Consistent
  • Communicated proactively

Structure replaces improvisation. Frameworks replace guesswork. When your staff know what will happen, and your members understand what to expect, interactions become calmer and outcomes more predictable.

Why This Matters Financially

When friction decreases:

  • Complaints decline
  • Staff confidence improves
  • Revenue becomes more predictable

Responsible revenue isn’t about charging less. It’s about delivering stronger value more consistently without surprises.

The ADVANTAGE Difference

By aligning policy, technology, and communication, credit unions can create programs that support both consumers and balance sheets, without sacrificing trust. When overdraft programs are designed holistically rather than managed reactively, they preserve trust, reduce operational strain, and create stability without sacrificing revenue.

Key Takeaway

Reducing friction isn’t defensive. It’s one of the most reliable revenue strategies available today. Understanding how shifting member behavior, liquidity needs, and ongoing regulatory attention intersect is just as critical.

For a deeper look at balancing risk, revenue, and reputation, check out the most recent discussion featuring Barb Lowman, President of CSS, and Cheryl Lawson, EVP of Compliance at ADVANTAGE:

Watch on-demand: Financial Stability 360: Balancing Risk, Revenue & Reputation in 2026

Connect with ADVANTAGE to explore how credit unions are reducing friction while strengthening revenue stability.