In today’s episode, we talk about how AI has changed finserv’s approach to advertising and which areas of bank marketing will be affected the most. Join the discussion with host and Head of Business Development Rob Rubin, Analysts Lauren Ashcraft and Jacob Bourne.
The news: Stablecoin issuer Circle has applied for a US trust bank license, less than a month after its IPO launch. It had planned to make this move before the launch. Our take: We’ve recently covered multiple fintechs launching IPOs, and moving toward traditional banking—including acquiring licenses. Its decision which aligns with both of these trends signals how stablecoins become more mainstream in the banking world. Plus, Circle’s status as a national trust bank could enhance trust among customers who are still on the fence about investing.
US commerce media ad spending is projected to hit $118.4 billion by 2029, growing at a 15.3% compound annual growth rate (CAGR), per a May EMARKETER forecast.
The news: Credit unions—especially smaller ones—are rapidly advancing their digital capabilities. Small credit unions have drastically reduced their innovation lag rate in just the past year. Our take: The progress made by credit unions shows that they are serious about appealing to younger customers. With digital expectations rising and innovation showing no signs of slowing down, credit unions will need to maintain this momentum to stay relevant and meet the evolving needs of future members.
The news: Deutsche Bank plans to launch a digital asset custody service next year, which would allow clients to securely store cryptocurrencies and tokenized assets. It initially announced its custody plans in 2022. Our take: These two German banks’ announcements signal growing confidence among European financial institutions in embracing digital assets. We expect more of them to follow suit in the coming year.The trend could also pick up pace in the US amid a favorable environment: Several major US banks already offer crypto asset services, but recent developments like the withdrawal of previous cautionary guidance by the Office of the Comptroller of the Currency could spur more major US banks to jump in.
The news: Capital One, after acquiring Discover, plans to significantly expand its card businesses using Discover's network. This allows the bank to boost profitability and enhance offerings. CEO Richard Fairbank emphasized new services, including attractive rewards for debit cards and compelling credit card deals, funded by increased interchange revenues. Our take: Capital One's Discover acquisition maximizes its expanded infrastructure. Owning a payment network allows Capital One to capture more interchange revenue, reinvesting it into more competitive debit and credit card products. This approach will appeal to consumers facing financial uncertainty, promising better rates and rewards, strengthening Capital One's market position and ability to attract/retain customers.
The news: Klarna is pivoting toward digital banking in the US, preparing for its IPO amid growing scrutiny of the buy now, pay later (BNPL) market. This includes launching US debit cards and expanded savings offerings, with Klarna rebranding itself as a neobank aiming for a "super app" experience. Our take: This signals a broader trend of fintechs evolving into banks, intensifying pressure on traditional financial institutions (FIs) to differentiate. FIs must clarify their niche, pursue strategic scale, and accelerate digital transformation. Despite Klarna's expansion, FIs retain a key advantage: their card-based installment plans still outperform BNPL in customer satisfaction.
The news: Valley Bank worked with Adrenaline to create digital signage at its Fifth Avenue NYC branch to boost brand recognition and customer engagement. Displays feature dynamic visuals of diverse eyes and motivational taglines, unified across large LED and supporting screens. This omnichannel approach also used QR codes to direct customers to digital platforms. Our take: This initiative effectively uses digital signage to increase foot traffic. Custom, human-centric content, not stock photos, resonates, especially with younger audiences. QR codes with product displays are smart, converting brand awareness into new banking relationships via strategic visual storytelling and direct engagement.
The news: The P&C insurance industry posted a 96.6 combined ratio in 2024—its best in 10+ years—despite natural disaster losses. Major reserve boosts, surging premium growth, and smart underwriting (especially in personal auto and homeowners) drove this performance. GenAI adoption further enhanced claims processing and fraud detection. Strategic exits from high-risk areas also curbed losses. Our take: P&C insurers must double down on AI, automation, and risk analytics to sustain profitability amid growing climate volatility and economic headwinds. Innovation in underwriting and pricing, paired with disciplined risk management, will be key to staying resilient in an increasingly unpredictable risk environment.
The news: A recent study found 89% of consumers prefer affordable life insurance with shorter guarantees (to age 90) over “guaranteed-for-life” policies—once visuals and real-world comparisons clarified premium trade-offs. Flexibility and control in coverage and payments also ranked high. Insurers must stop defaulting to lifetime guarantees. Our take: Life insurers should reframe product education using visuals, dollar examples, and jargon-free language to communicate the cost-benefit of “lighter” options. Designing flexible, customizable life insurance policies will attract cost-conscious buyers and boost retention in a market shifting toward personalization and transparency.
The news: Despite lower COVID-19 mortality rates, it remains the 10th leading cause of death in the U.S. Lingering health impacts—like long COVID, delayed diagnoses, and worsening chronic conditions—continue to threaten life insurers’ claims experience and profitability. Pre-pandemic underwriting likely underestimated these risks. Our take: Life insurers must recalibrate actuarial and pricing models to account for persistent COVID-19 health risks. Incorporating new medical and mortality data into term life and other products will ensure premiums align with post-pandemic realities, protect margins, and improve risk modeling accuracy in an evolving health landscape.
The news: The banking sector is evolving towards embedded finance and enhanced data-sharing, allowing customers to access financial products and services from any provider, on any platform. This unbundling trend, driven by fintechs, could marginalize traditional banks. The article draws a parallel to the music industry's digital disruption, where unbundling (like iTunes) and streaming (like Spotify) fundamentally reshaped its value chain. This transformation, catalyzed by companies like Napster, created diverse new models. The opportunity: Similar to how streaming music providers anticipate continued growth, banking customers increasingly seek unbundled services, with fintechs outpacing traditional financial institutions in new checking account openings as consumers hold multiple accounts for specific needs.
The news: A proposed merger between Bank of New York Mellon and Northern Trust could create a "monster deal," significantly consolidating the custodial banking space. This large-scale move would pressure smaller competitors, potentially creating a powerhouse in institutional investing and setting new digital efficiency standards. The recent Capital One-Discover acquisition suggests a regulatory environment emboldening such rapid growth. Our take: While large mergers are gaining traction, they're not guaranteed solutions for competitiveness. Banks considering similar strategies must plan meticulously and engage stakeholders. Without careful execution, such integrations can lead to dissatisfied customers and attrition, despite the perceived benefits of scale and market dominance in a hyper-competitive environment.
The news: Banks shouldn't use a single marketing strategy for all young people—Millennials (born 1981-1996) and Gen Z (born 1997-2012) have distinct financial behaviors. Millennials, shaped by economic uncertainty, seek stability and pragmatic digital tools, valuing expert advice. Gen Z, digital natives, demand effortless speed, are influencer-driven, and focus on immediate experiences, often skeptical of traditional banks. Our take: Marketing must be tailored. For millennials, emphasize trust, reliability, and security for long-term goals, offering expert education. For Gen Z, highlight speed, flexibility, and convenience through engaging, short-form content on platforms like TikTok, utilizing influencers to build rapport.
The news: A superior digital interface directly correlates with customer care, boosting recommendations and loyalty. Personalized digital engagement, where banks anticipate Gen Z's needs and provide relevant recommendations, also builds trust. Our take: To combat Gen Z's distrust, banks must prioritize brand authenticity and enhance the digital experience. Banks should invest in seamless onboarding, intuitive mobile apps, and relevant personalized recommendations. Failure to do so means digital competitors will continue to capture this emerging generation of wealth builders by operationalizing care through design and data-driven personalization.
The news: A majority of GLP-1 weight loss drug consumers are now staying on the medications for more than a year, per an annual Prime Therapeutics analysis. The Prime study includes 5,780 people via healthcare claims over three years; the mean age was 47 and 80% were women. The final word: Adherence rates longer than a year validates the idea that prescription weight loss GLP-1s, and newer drugs on the way, are here to stay as chronic disease treatments. It shifts typical weight loss marketing from cyclical—keep your New Year’s resolution or lose weight for your wedding—to medical and consistent.
The news: Digital-first consumers now expect fast, zero-click access to information—meaning they often get answers from search engines or social platforms without clicking through, per CUInsight. To stay visible, FIs should optimize content for featured snippets, enhance their Google Business Profiles, and use tools like calculators that embed in search results. Our take: Zero-click marketing deserves its own strategy alongside SEO and generative optimization. Financial brands that adapt their content to meet users where they are—within snippets, tools, or knowledge panels—can build more visibility and trust than competitors who rely on traditional site traffic alone.
The news: CI&T and Project Nemo have developed a prototype app called Nemo, Art of the Possible, designed to help adults with learning disabilities manage money independently and securely, per Stock Titan. The app includes calm mode, adaptive onboarding, emergency savings, and user-controlled support to promote financial inclusion. Our take: With one in five US adults experiencing learning or attention challenges, banks have a major opportunity to broaden access. By partnering with fintechs to deliver inclusive tech like Nemo, financial institutions can better serve underrepresented users and improve financial health, experience, and loyalty across their customer base.
The news: Financial institutions (FIs) must prioritize generative engine optimization (GEO)—the evolution of SEO—or risk disappearing from AI-powered customer journeys, according to The Financial Brand. As tools like ChatGPT increasingly guide users in choosing financial products, FIs must ensure their content is optimized for visibility and relevance within these AI environments. Our take: Nearly 80 million Americans are already using generative AI search engines, and that number is growing. FIs that move early to optimize their content will increase visibility and credibility with AI-driven consumers, while those who delay risk losing brand presence altogether.
The findings: A new study reveals that subtle changes in older adults' everyday financial behavior, detectable in banking data, can signal cognitive decline and financial vulnerability up to a decade before formal intervention. These changes include reduced spending on hobbies and travel, fewer online logins, and increased fraud reports or PIN reset requests, indicating a rise in financial errors and susceptibility to fraud due to early-stage dementia. Next steps: By identifying these risk factors, banks have an opportunity to not only prevent fraud but also solidify their role as trusted financial partners throughout customers' entire journeys. This also creates pathways to build relationships with their older customers’ caretakers or family members when permission is granted, enabling personalized support and long-term financial planning.