The New Financial Landscape: What the Digital-First Banks are teaching us

"We’re witnessing the creative destruction of financial services, rearranging itself around the consumer. Whoever does this in the most relevant, exciting way using data and digital, wins!" — Head of Retail Banking & Wealth Management, HSBC

Consider this:

• Chime: Chime skyrocketed from 7,000 users in 2015 to 7 million by 2024, generating $1.5 billion in annual revenue and processing $8 billion in monthly transactions.
• Revolut hit $2.2 billion in revenue in 2023, serving over 45 million customers with a diversified, digital-first business model.
• Jenius Bank reached $1 billion in deposits in less than a year.

What do all these success stories have in common? They didn’t just digitize old processes—they reinvented them. For credit unions, the lesson is clear: to thrive, we need to prioritize digital transformation, focusing on membership growth, deposit growth, and margin growth. And it all starts with the digital account opening and onboarding process.

What you will learn:

The Evolution of Digital Account Opening and Onboarding

Before we dive into the details, it’s essential to understand the evolution of digital account opening (DAO) and onboarding. The journey can be broken down into three generations:

• 1st Generation DAO: This was a simple digitization of legacy processes, often lacking user-friendly interfaces and critical fraud detection tools. It wasn’t built for seamless member onboarding.
• 2nd Generation DAO: While there were improvements in user experience, outdated systems and processes still lurked behind the scenes. Onboarding often became an afterthought, leading to inefficiencies and overwhelming manual work for staff.
• Next-Generation DAO: This is where the magic happens. A fully reimagined process, built with decision intelligence, advanced analytics, and a focus on member satisfaction. It’s fast, secure, and designed to deliver the kind of experience that today’s digital-first consumers expect.

This series will help you understand how to make the leap to the Next Generation of Digital Account Opening and Onboarding—a move that can transform your credit union’s growth trajectory.

The Next-Gen DAO  is inspired by the model that Amazon famously used to propel itself to massive success. This strategy, also known as the "Virtuous Cycle," revolves around the idea that a series of small, interconnected actions can create self-sustaining momentum. As each part of the wheel turns, it powers the next, leading to continuous growth without needing constant intervention.

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What does this mean for Credit Unions?

For credit unions, this means applying a set of strategic moves that reinforce one another—boosting member engagement, improving efficiency, and driving profitability. As each step builds on the last, your credit union’s growth becomes more powerful and sustainable over time.

Meeting Prospective Members Where They Are

Today’s members want convenience, speed, and personalized experiences. They’re accustomed to the seamless services of tech giants like Amazon and digital-first banks like Chime and Revolut. Your credit union must adapt to these changing expectations if you want to stay competitive.

The Shift in Consumer Expectations

The modern consumer demands convenience and instant gratification. They expect to manage their finances in real-time, from any device, whether they’re opening an account or applying for a loan. They also want to know their financial institution is trustworthy, secure, and transparent.

In response to this shift, credit unions must embrace the same digital-first mindset that’s driving the success of companies like Chime and Revolut.

Engaging Prospects Where They Are

To successfully grow your member base, you must engage prospects where they’re most comfortable: online. Whether through social media, targeted advertising, or strategic partnerships, you need to meet potential members in the digital spaces they already inhabit.

Attracting the Right Audience

Understanding your target demographic is crucial. Who are your ideal members? Young professionals? Families? Tailor your marketing strategies to connect with these groups in a meaningful way. By combining data analytics with focused outreach efforts, you can attract the right people and build strong relationships from the start.

Using Channels and Personal Networks

While digital tools are vital, personal referrals remain a powerful method of member acquisition. Encourage your existing members to refer friends and family by offering incentives. You can also engage your community through local events, webinars, and sponsorships to maintain strong relationships.

Aligning Offers with Member Goals

Today's members are looking for more than just a financial product—they want solutions that align with their life goals, whether it’s buying a home, managing debt, or planning for retirement.

Focusing on Personal Goals Over Products

Members are more likely to engage with your credit union if they see that you understand their unique financial journey. For example, a member saving for a home will appreciate a personalized savings plan or mortgage advice tailored to their needs. Your ability to provide solutions that align with their life stages will set you apart from traditional banks.

Rates and Convenience as Key Differentiators

While personalization is critical, competitive interest rates and convenience remain essential. Offering low fees and easy access to accounts is just as important as understanding your members' goals. The best part? You don’t have to choose between the two. By focusing on both, your credit union can stand out in a crowded marketplace.

Summary: Setting the Stage for Growth

As we progress through this series, you’ll gain insights into how Next-Generation Digital Account Opening and Onboarding can transform your credit union. By meeting members where they are, engaging them with personalized solutions, and using data-driven insights to improve every step of the process, you’ll be positioned for long-term growth.

Ready to take the next step? Our next lesson dives deeper into optimizing your digital processes for efficiency and growth. Let’s build a seamless, member-centric experience that drives success.