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As consumers turn to fintechs and payment providers for timely, solution-based support, banks are losing relevance. Staying in the game means shifting from product pushing to customer-led journeys.

Community banks and credit unions face rising delinquencies, margin pressure, and a disconnect with young consumers. As M&As accelerate, institutions must modernize tech and retain local trust to survive.

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鈥檚 also a major risk to their customers, who could not only move their money over to competitors鈥� accounts鈥攂ut 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鈥攁 risk that does not exist with a federally insured bank deposit.

The news: President Donald Trump is expected to sign an executive order against alleged 鈥渄ebanking,鈥� claiming that JPMorgan Chase and Bank of America discriminated against him by rejecting his company's deposits, per The New York Times. The fallout: Some FIs may alter their risk management practices to avoid a personal vendetta. But by mandating that banks cannot debank certain groups for fear of being accused of political bias, the order essentially limits their ability to manage risk. This could expose FIs to clients with legitimate compliance or reputational concerns. It also forces FIs to choose between political and financial blowback and carries a long-term risk of losing young, socially conscious customers. Gen Zers particularly care about 产补苍办蝉鈥� actions when it comes to what they deem as moral issues, like the environment or DEI. Diverting from prior commitments young consumers supported could risk their loyalty.

The news: British fintech Revolut is reportedly considering acquiring a US bank to rapidly obtain a US banking license, enabling faster expansion, per The Financial Times. It will likely target a low-cost, nationally chartered bank. Our take: Revolut鈥檚 potential acquisition of a US bank reflects a growing trend of successful fintechs becoming banks themselves through strategic acquisition rather than merely being disruptors. PYMNTS reported that multiple fintechs鈥攊ncluding Wise, Circle, and Ripple鈥攁lso recently applied for banking licenses with the Office of the Comptroller of the Currency. This means banks must lean into what differentiates them from the growing competition beyond charters and insured deposits, like long-standing reputations, excellent customer service, and customer-centric products and services.

The news: The American Bankers Association, the Bank Policy Institute, and Consumer Bankers Association defended their decisions to charge fees to fintechs in a letter responding to the Financial Technology Association鈥檚 recent plea to protect Section 1033. Our take: Banks are in lock-step marching toward undoing Section 1033. As competing trade groups make appeals to President Donald Trump鈥攚hose own family has expressed support for the open banking rule鈥攆intechs need to prepare for a post-1033 world.

As card demand contracts and consumers pay down debt, banks may be sidelining spend-ready customers before stagflation takes hold.

The news: Simplicity, speed, and personalized human support are the top priorities for small-business owners seeking a loan, according to an Academy Bank study. Nearly three-quarters of small-business owners still prefer in-person service despite the benefits of a speedy online process. Our take: We鈥檝e argued that people still want to work with people, especially for something as high stakes as a business loan. Gen Z and millennials are pushing the industry toward a digital-first model, but the mass market isn't there yet. This means banks can't simply abandon their physical branches or personal bankers鈥攅specially if they want to keep earning the loyalty of small-business clients. The most successful approach will involve giving these customers the option of completing everything they need in-person while simultaneously providing remote services for digital-first entrepreneurs.

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 news: Huntington Bank refreshed its brand with new logos, an ad campaign, and a suite of products to meet the evolving needs of its target customers, per a press release. The details: The brand refresh is changing not only the look and feel of marketing materials but thoughtfully addressing the needs of its target audience. Will it work?: The success of the rebranding will depend on preparation as well as buy-in from employees and customers. But what stands out as incredibly strategic are its products that thoughtfully address its target customers鈥� life-stage-related needs.

The news: According to a recent survey by money management and safety app Greenlight, financial literacy is a top concern among US families. While this type of education is in high demand, 47% of financial institutions (FIs) don鈥檛 offer it at all, per the Federal Deposit Insurance Corporation. Our take: Offering solutions that help young families can help build stronger relationships with parents and their kids (who are likely to bank where their parents do). While it鈥檚 difficult to quantify the ROI of offering these solutions, the benefits of improved customer loyalty and young customer acquisition can help set up an FI for long-term success.

The finding: Up to one-third of US consumers consider lying on credit applications to be acceptable in some situations or normal behavior, potentially fueled by the rising cost of living, per FICO鈥檚 2025 Consumer Survey. Our take: The rise of first-party fraud means FIs can no longer rely solely on self-reported data. By responsibly leveraging a broader range of data points鈥攕uch as transactional history, rent/mortgage payments, and utility bill data鈥攚ithin compliance guidelines, banks can build a more comprehensive and accurate picture of a customer's financial health and ability to repay.

The news: We鈥檝e seen TD Bank lean into comedy before to appeal to younger consumers and launch new products. It鈥檚 using a similar strategy to educate current and prospective customers about fractional investing services. Can it work? It鈥檚 a clever concept that has prompted consumers, who generally like the ad, to question the legality of using snippets of widely recognized logos, per Creative Bloq. The ad鈥檚 core strength is how it takes a complex financial concept鈥攆ractional investing鈥攁nd makes it instantly understandable through a simple visual pun. This approach is highly effective in grabbing attention, especially from younger, digitally savvy audiences, who might find traditional financial ads unappealing.

The news: After facing early-career challenges from the Great Recession and then the pandemic, many millennials are now wealthier than previous generations were at the same age. But a significant number remain anxious about their financial future and worry that their wealth could disappear, per The Wall Street Journal. Why this matters for banks: Just as Gen Zers feel they need to earn a whopping $587,800 per year to achieve financial success, millennials may need a reality check from their banking providers so they can productively work toward their financial goals.

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鈥檚 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: The average VantageScore credit score dropped one point since last month, meaning the average customer鈥檚 creditworthiness is declining. And there are other signs of credit stress that should be alarming to banks. Our take: With the average credit score dropping and delinquencies rising across all tiers鈥攊ncluding among historically reliable superprime borrowers鈥攆inancial institutions (FIs) are facing a higher-risk environment. This requires a proactive approach to risk management. FIs should tighten their underwriting standards鈥攑articularly for mortgages and auto loans, which are showing the largest increases in late payments. In addition, FIs must proactively engage with customers to help prevent delinquencies from turning into defaults. By using data to identify at-risk borrowers and reinforce customer loyalty, FIs can reach out with support and resources like loan modifications or personalized financial guidance.

The news: New account openings were down 5% across Wells Fargo, Citi, Bank of America, and American Express during Q2 2025, per The Wall Street Journal. Our take: Issuers are going to chase opportunities to increase their payment volume, which explains targeted efforts to boost luxury travel and dining rewards. But looking long-term, banks need to think strategically about loosening their credit guidelines.

The news: 79.64% of consumers prefer going straight to their bank to resolve a dispute rather than engaging the merchant in question, per a survey by Chargebacks911. Our take: Both banks and merchants want to reserve the chargeback process for exceptional circumstances in customer care.

The news: The Financial Brand recently featured Citizens Bank鈥檚 comprehensive strategy for improving the customer experience. What stood out to us were Citizen Bank鈥檚 people-first approach, hyper-local strategy, and data-driven decisions. Our take: While no single strategy鈥攂e it a people-first approach, hyperlocal focus, or digital innovation鈥攚ould alone future-proof a bank's business. But Citizens' integrated pursuit of all three forms a truly comprehensive, powerful, and competitive strategy, positioning the bank effectively against traditional rivals and agile fintechs.

The news: Microdramas may be the next big thing on mobile, at least that鈥檚 what a new Hollywood startup is hoping. MicroCo plans to use AI to help create 1- to 3-minute vertical-video shows meant for the mobile screens. Microdrama seasons would be 30- to 100-episode arcs鈥攖hink telenovelas in short bursts. Our take: Microdramas are a growing venture and are ideal for the quick-hits crowd occupying social media. MicroCo could come out ahead if it can create and monetize buzzworthy content. While brands have the opportunity to advertise within short videos, they might fare better creating their own microdramas to appease consumers who are tired of ads.