As card demand contracts and consumers pay down debt, banks may be sidelining spend-ready customers before stagflation takes hold.
The news: A coalition of major US banks is pushing for reforms to the recently enacted GENIUS Act. The banks are concerned that a loophole could give non-bank competitors advantages over more regulated traditional banks, per AInvest. Our take: The main challenge for traditional banks is that they have to compete on a new front with different rules. But it’s also a major risk to their customers, who could not only move their money over to competitors’ accounts—but also lose it. While a 4% reward rate is highly attractive and far exceeds most traditional savings account interest, these stablecoin holdings are not necessarily protected by FDIC insurance. Without this insurance, a platform failure could mean consumers lose their entire investment—a risk that does not exist with a federally insured bank deposit.
The news: Financial institutions (FIs) are obsessed with acquiring new customers. But prioritizing it over other important goals won’t work in the long run. Our take: The steps FIs should take to ensure the customer journey doesn’t end right after it starts include: Investing in a strong onboarding experience. Create incentives—such as rewards and personalized insights—for customers to make their second transaction, not just their first. And seamless onboarding journeys particularly help strengthen ties with younger customers, who have high expectations for great experiences. Rethinking their brands. FIs can stand out by figuring out what makes them unique and communicating that consistently. If a brand or messaging is indistinguishable from the next FI, consider a rebrand or brand refresh. Doubling down on AI. From ensuring FIs show up in generative search engine results to supercharging the customer experience with AI agents, finding new ways to implement the technology to better engage customers can be a valuable investment.
The news: MX Technologies recently surveyed 1,000 US consumers to study what drives banking customer retention and attrition. Our take: The MX Technologies report underscores that consumers are highly motivated by value, convenience, and a seamless digital experience. In addition, they know what they want for their finances and are willing to look to competitors to get it. To win and retain customers, FIs should proactively use data to anticipate customer needs at key life stages and offer relevant products before those moments arrive.
The strategy: Agentic AI could redefine how banks detect and prevent financial crime, according to a recent McKinsey report. Our take: Banks are just beginning to pilot agentic AI and explore use cases, but they should prioritize using it in financial crime prevention. This technology will become essential as traditional methods struggle to keep up with increasingly sophisticated criminal tactics: Despite allocating significant resources to KYC and AML efforts, the financial industry only detects about 2% of global financial crime, per Interpol data.
The finding: Interest in electric vehicles (EVs) has ticked up in the past year, per Deloitte’s June 2025 ConsumerSignals report. Globally, 44% of consumers said they would prefer an EV for their next vehicle, compared to 39% one year ago. In the US, 37% of consumers want an EV, up from 34% in June 2024. The rise in EV demand marks a fundamental shift in the risk landscape. Insurers can no longer afford to underwrite EVs as they would a regular car and adjust premiums reactively. Instead, they must move to a proactive model. This will include incentivizing safe driving, and educating consumers about their vehicles and how to keep premium prices as low as possible. Next, insurers should consider acquiring cybersecurity insurance, investing in human-centric security, and implementing advanced security technologies.
The strategy: Insurance Business Magazine analyzed the tactics behind recent successful insurance marketing campaigns. Our take: The most successful insurers aren't just selling a product; they’re telling a story that connects to people's lives and their need for security and peace of mind. In our report “Life Insurance Trends 2025,” we also explored marketing techniques to help customers—especially younger generations—see the value of insurance. We emphasized price transparency, value-adds, and education on what products entail. Insurance Business Magazine’s analysis backs this up: When insurers move beyond technical jargon and focus on tangible benefits of insurance, they build trust, create memorable campaigns, and ultimately drive greater interest and loyalty.
The news: US Gen Zers’ rising interest in financial independence is driving them to favor banking websites over beauty, gaming, or news websites, according to our industry KPI data provided by Comscore. The number of unique visitors ages 18–24 to banking industry websites grew from 15.0 million to 15.7 million between January and June 2025. Other industries saw a drop in unique visitors of that age bracket over the same period. Our take: Financial institutions (FIs) must adapt their strategies to align with Gen Z's priorities and behaviors, because their competitors clearly have.This will require them to rethink the user experience, shift from products to value, and embrace socially native communication.
The news: Sixty-four percent of Gen Z and 65% of millennial homebuyers say their financial well-being will depend on their ability to refinance to a lower interest rate in the future, per Truework’s “The State of Homebuying in America” report. But if rates don’t significantly drop over the next few years, these customers’ mortgages could be at risk of defaulting. Our take: Financial institutions (FIs) can step in to help young homeowners navigate their mortgages while they await rate changes. FIs can start by offering automated refinance alerts, enhancing digital transparency and providing a homeownership/homebuying educational hub.
The news: Last year, we covered predicted growth in specialized insurance, including cybersecurity protection, because of the rising costs of data breaches. Allianz Life’s recent incident is further proof why such protection and precautionary measures are imperative. Why this matters: As a result of this data breach, Allianz Life faces financial and reputational costs that could affect its bottom line for years. This is a powerful reminder for the entire insurance industry to strengthen its cybersecurity defenses. Preventing attacks requires a proactive and comprehensive strategy beyond simple perimeter defenses.
The strategy: Tech platform Bluwhale has released a model for a scoring system that calculates real-time credit signals from both fiat and crypto assets, per Cointelegraph. Why this matters: We called for FIs to consider incorporating crypto assets into lending products in our report “Home Lending Trends 2025.” Here’s why: Cryptocurrency is becoming more mainstream, with big banks increasingly incorporating digital currencies into everyday solutions. Younger consumers are more interested in alternative investments including crypto than their older counterparts. Our take: FIs aren’t currently offering Bluewhale’s system, but the model still illustrates how creditworthiness scoring could look in the future. FIs that include financial activity that demonstrates strength but doesn’t appear on a traditional credit report can assess loan requests more accurately—and potentially approve more customers.
The news: Fintech giant Chime beat Wall Street estimates in its first quarterly revenue reporting as a public company, driven by strong demand for its digital banking services, per Reuters. Our first take: Chime's impressive debut as a public company is a powerful statement about the shifting dynamics of consumer banking. For years, traditional banks have dismissed challenger banks as a fringe trend. But Chime's financial performance proves there's a huge, profitable market for digital-first financial services. In addition, Chime’s focus on short-term liquidity tools and early pay access has positioned it as a valuable financial partner, especially as consumers are faced with pressing economic concerns.
The news: President Trump recently signed an executive order to allow Americans to invest 401(k) retirement savings in private equity, cryptocurrency, real estate, and other alternative assets, per NBC. The administration believes this will give retirement savers more opportunities for potentially higher returns. Our take: This may excite younger consumers in particular, as they generally are more interested in alternative investments. But critics and financial experts warn that these new options come with higher risks and costs than traditional 401(k)s. The traditional banking model centers on stability, trust, and relatively conservative financial products. In addition to new opportunities, introducing high-risk, alternative assets into retirement accounts creates significant challenges for the banking sector.
The findings: Bank of America’s report “A Window to Gen Z’s Financial Health” looks at some of the biggest financial stressors that Gen Zers face. 36% say their income doesn’t cover the cost of their basic needs. The survey also reveals the efforts Gen Zers have made in the last year to still meet their financial goals. 51% put money in savings. 24% paid off debt. 25% put money into retirement accounts. 41% started shopping at more-affordable grocery stores. Our take: Banks can effectively engage with Gen Z by offering products and services that acknowledge the desire for short-term gratification and long-term financial stability.
In today’s episode, we talk about the promise and challenges financial media networks face in the burgeoning commerce media network landscape. Join the discussion with host and Head of Business Development Rob Rubin, Principal Analyst Sarah Marzano, and Senior Analyst Max Willens.
The news: Paxos Trust Company—the firm behind PayPal's stablecoin, PYUSD—is reapplying for a national trust bank charter with the US Office of the Comptroller of the Currency (OCC), per Reuters. This is a renewed attempt after its initial application expired in 2023. Other cryptocurrency firms, like Circle and Ripple, have recently applied for similar licenses. Our take: This is a calculated move by Paxos that reflects an evolving crypto market. While its previous attempt at this license stalled, the current environment is dramatically different. Securing this charter would be a significant competitive advantage and give Paxos a higher level of trust and legitimacy. This is crucial for attracting institutional partners and mainstream companies that remain wary of the crypto space.
The news: Citigroup CEO Jane Fraser met with President Donald Trump to propose a public stock offering for mortgage giants Fannie Mae and Freddie Mac, per Bloomberg. The proposal is part of a larger push by Wall Street executives who see the deal as a potentially large source of revenue. Our take: IPOs take time, and this one would be an especially massive undertaking. In his first term, President Trump attempted to privatize the two firms and was unsuccessful, highlighting the rocky road ahead. This leaves the next steps and timeline murky, but we will be closely watching developments.
The news: We recently covered Wells Fargo’s early entrance into the agentic AI realm. And we recommended that other financial institutions (FIs) explore how they could implement it, too—regardless of size. Now a smaller FI, Michigan-based Family Financial Credit Union, has announced its partnership with fintech start-up Algebrik AI to implement a new digital lending suite, per a press release. Why this matters: Family Financial Credit Union will be one of the first smaller FIs to go public with its agentic AI offering. If it proves successful and customers like the experience—which could in turn draw more business to its loan products—it could inspire other institutions to pursue similar partnerships and offerings. We expect many more FIs of all sizes to announce agentic AI pilots in the near future.
The trend: In June, we covered how Gen Zers intended to prioritize planning for summer over their financial futures. They said they would return to their finances when summer is over but spend more on nonessentials in the meantime. CIT Bank’s 2025 summer vacation survey reveals they did just that. What this means for banks: As we near the end of summer travel, financial institutions should prepare campaigns that advertise budgeting and savings products that can help their customers get back on track financially. Such products could include high-yield savings accounts, in-app budgeting tools, certificates of deposit, and automated savings features.
The news: Wells Fargo is partnering with Google Cloud to equip the bank’s 215,000 employees with advanced generative and agentic AI tools, per American Banker. The phased implementation will span the next few months. Why this matters: If Wells Fargo sees greater efficiency, a better customer experience, and savings from the wide AI rollout, it could set an industry trend. Competitors should at least begin exploring how they can implement agentic AI in their own operations. And Google Cloud’s involvement serves as a reminder that these solutions don’t need to be developed internally. Third-party partnerships may be especially valuable for smaller financial institutions that want to catch up on AI innovation.