Lending

Prioritizing Lifetime Loyalty: Thinking Beyond the Next Quarter

5 mins read
November 11, 2024
By
Mike Waterston

Leaders of banks, credit unions, and other financial services organizations have been on a roller coaster since 2018. Trying to keep up with the predictions and the conversations about what will happen with rates could leave you with whiplash. And yet, according to Deloitte, the top challenge for financial institutions in 2025 will be adapting to what it calls a “low-growth, low-rate” environment, where a mix of slower consumer spending, higher unemployment, and lingering geopolitical and regulatory uncertainties keep us teetering on the edge of a recession that’s been threatening the last three years.

But leaders need to resist rash reactions to these anxieties because, as we’ve said before, financial institutions can’t cut their way to growth. Those that pull back too strongly on investing in innovation will quickly damage customer experience and hurt long-term loyalty—and won’t be ready to capture opportunities when conditions do begin to turn around.

Success in 2025 depends on thinking beyond the next quarter. Financial institutions need to build enterprise-level strategies that position their businesses for long-term success.

So, what does that long-term, enterprise-level strategy look like?

How we got here: Boom times shifted the focus from relationships to transactions

Think back to the five years leading up to the start of the pandemic: Things were good. Many financial institutions saw such high business volume that they were just trying to get the transactions done. Strategies became ad hoc and short-term—making quick hires to throw people at the problem and/or piling on point-solution products that promise to solve specific issues.

We can look past the pandemic period of 2020-2021 as a (hopefully) once-in-a-century anomaly. But when rates started increasing in 2022 and the economy slowed down, the transactional focus of many financial institutions led to some knee-jerk reactions: cutting costs, cutting staff, and cutting vendor expenses.

The economy proved surprisingly resilient, holding off the recession that was forecast in 2022 and 2023. Some financial institutions saw volume bounce back—forcing them to quickly add staff and develop ad hoc strategies to keep up.

Today, we’re back to worrying about a slowdown. We’re seeing major banks worldwide announce significant job cuts, with Citigroup, Wells Fargo, and Goldman Sachs all making huge layoffs.

What smart financial institutions do differently: invest in a long-term growth strategy

The most successful financial institutions over the last several years (and, more broadly, the most successful businesses across all sectors) share a common strategy: They didn’t enact massive cuts. In fact, many invested more, doubling down on building the best tech stack and developing extremely efficient processes.

There are two outcomes of this double-down strategy:

    1. Leading financial institutions remain leaders in delivering best-in-class customer experience. After all, with revenue already down, no business wants to lose customers. And with FinTech disruptors constantly innovating, if you’re not keeping up, you’re falling behind.
    2. Leading financial institutions are able to build the scalable infrastructure they need to capture opportunities at speed. So, when the economy turns back around, they’ll be instantly ready to handle the increased volume—without having to add incremental costs by throwing staff at the problem.

Case study: Lake Michigan Credit Union maintains mortgage purchase volume through high-rate years

A great example of this is Lake Michigan Credit Union: As rates rose over the last two and a half years, this credit union’s mortgage volumes stayed far higher than most.

Why? Because when the refi boom occurred back in 2020-2021, Lake Michigan CU stayed the course on its overall strategy of balancing purchase and refi business. They didn’t over-index on refi, so they were able to stay consistent through the down economy.

Moreover, they continued to evolve and advance their tech stack. Bet on them to be at the front of the line to capture volume when it returns.

Learn more in our case study with Lake Michigan Credit Union >

Three pillars of a long-term strategy

How can financial institution leaders take a long view on positioning themselves for success when the economy turns around? Here are three key pillars of a long-term strategy:

1. Building an enterprise-wide data strategy

Financial institutions generally have three main pools of data: accounting, marketing, and IT. These data pools are typically not well integrated—and short-term strategies tend to only reinforce those data silos.

To effectively leverage data to interact and prospect, financial institutions need to develop an enterprise-wide data strategy that integrates all their data to unlock new insights and drive better outcomes. The benefits of consolidated data management will almost inevitably come in the form of better marketing ROI, improved customer interactions, and even increased profitability.

Today, we’re seeing more and more financial institutions hiring consultants to help them design this kind of overarching data strategy—delineating how data will be aggregated and integrated. A comprehensive data strategy will also set data governance policies to ensure data is cleaned and protected—and define how compliance teams handle data to ensure sensitive data is locked down properly.

2. Reducing friction points in CX (and EX)

Leading financial institutions are doubling down on tech investments, particularly around reducing friction points in their customer experiences (CX) and employee experiences (EX). Building a tech stack that works seamlessly together often means consolidation. Following an analysis, the financial institution will work to remove duplicative or point products and replace them with widely adopted, comprehensive platforms.

For customers, that means delivering omnichannel, predictive, and hyper-personalized experiences. For employees, it means connecting data silos and making it easy for them to get the information and workflows they need to be productive.

3. Enhancing internal training & onboarding

The short-term, transactional approach treats staff as fungible resources: When volume goes down, financial institutions lay off employees. Because when volume comes back, it seems easy to just hire additional people. This approach overlooks the reality that the value of employees largely depends on their experience.

Moreover, training is the only shortcut to experience. A smart, long-term strategy focuses on maximizing the value of a financial institution’s human resources. Building strong internal processes and training programs will ensure employees are both able to execute well within your environment and enable you to more efficiently and effectively onboard new staff if you need to add people to accommodate volume.

Double down on relationships & build long-term loyalty

Right now, we’re seeing a sharp divide in how financial institutions are reacting to slowing growth amid other persistent economic anxieties and uncertainties.

It feels like half of financial institution leaders are waking up every day scared—and letting those emotions guide an overall strategy toward a much shorter-term focus. Of course, it’s human nature to get concerned when revenues drop. The natural temptation is to slash costs and take a month-to-month or quarter-by-quarter view on survival. But it’s never smart to let emotions guide enterprise strategy.

The other half are doubling down—continuing to focus on improving CX and deepening loyalty. They’re building scalable business models that will let them pounce on opportunities, without the chaos and costs of having to scramble to add people and build ad hoc processes when the moment of opportunity hits.

Total Expert General Manager of Banking James White says, “It isn’t about cutting costs. It’s about giving your organization the ability to generate more revenue for every dollar spent.”

Cutting back and focusing on survival is a risky proposition. By doubling down on what you need to win loyalty today and capture volume in the future, your financial institution will be able to differentiate from transaction-focused financial institutions—and win the long game by earning customers for life.

Building deeper customer relationships starts by truly understanding your customers’ financial needs and goals. Learn how Total Expert Customer Intelligence can give you the insights you need to engage your customers in more meaningful conversations.

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Smaller Lenders, Bigger Impact: Using Data to Deepen Personal Relationships

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Forming authentic relationships has always been the competitive edge for smaller lenders. And as the FinServ world has become more tech-driven and digital-first, credit unions and community banks have only leaned further into this powerful differentiator. But we’re seeing an interesting trend among some of the most successful small- to mid-market lenders: They’re recognizing that tech-enabled engagement is no longer mutually exclusive to genuine human connections. They’ve created powerful data-driven strategies that make it easier for them to build good, old-fashioned personal relationships.

These forward-thinking lenders are realizing that their smaller size is actually an advantage in implementing “big data” tools and strategies. We’re seeing credit unions and community banks deploy Total Expert Customer Intelligence in a matter of weeks and start realizing value in as little as 90 days, building a loyalty- and revenue-generating engine that fuels itself.

But how are they doing it in a financial landscape where consumers have more choices and competitors aren’t just in the building across the street?

Even close borrower relationships are growing more complex

Small- to mid-market lenders have been historically hesitant to embrace tech-powered, data-driven strategies because there was a concern that it would dehumanize their connections with borrowers. Which is understandable as community banks and credit unions have built their brands and their reputations on their ability to forge honest, transparent relationships—getting to know their customers and members in ways bigger lenders could only dream of.

But even those 1:1 borrower connections are now digital-first, multi-channel relationships. Those increasingly complex relationships involve exponentially more data, information, preferences, and intent signals. A common concern we hear among smaller lenders runs along the lines of, “We don’t have enough data for a ‘Big Data’ strategy.” But the truth is that even the smallest credit unions and community banks are swimming (and sometimes drowning) in a pool of tremendously valuable data.

Borrowers expect to feel “known” across every channel; they want the same feeling of 1:1 personalization at every touchpoint. And it’s becoming a genuine challenge for smaller lenders to juggle all the information and orchestrate these hyper-personalized omnichannel experiences.

Using Customer Intelligence + marketing automation to enhance personal borrower relationships

More and more credit unions and community banks are turning to data-driven, tech-enabled strategies to complement—not replace—their personal relationships with borrowers. We’ve seen smaller lenders have tremendous success with Customer Intelligence and our dynamic, automated Journeys because they:

  • Surface intent signals in real time: Customer Intelligence surfaces critical intent signals as they happen, giving LOs the superpower of knowing what borrowers and homeowners need when they need it.
  • Highlight life events as critical engagement opportunities: Customer Intelligence helps smaller lenders go beyond traditional intent signals, recognizing key life events or milestones (graduating, getting married, starting a family, changing careers, retiring, etc.) that signal shifting financial goals and new borrowing needs. This gives your LOs natural opportunities to reach out with helpful, personalized guidance.
  • Enable personalized outreach at scale and speed: Credit unions and community banks are using Total Expert Journeys and other automation capabilities to help their LOs stay on top of all of these valuable Customer Intelligence signals. Built-in triggers and automated Journeys enable LOs to magically engage at just the right time—across their full roster of customers and prospects.

Smaller lenders are leveraging Total Expert’s digital toolset to help them show up for borrowers when it matters most—across every and all channels—to give them the feeling they want most: a trusted financial advisor who understands their financial needs and goals, providing proactive support and guidance to help deliver the best possible outcome.

Measuring time-to-value in weeks, not years

Another major misconception among credit unions and community banks is that they don’t have the resources to manage this kind of automated, Customer Intelligence-powered strategy.  

It’s true that smaller lenders likely don’t have large internal teams of data analysts (if any). But Total Expert has led the charge in democratizing access to leading-edge data analytics tools and capabilities. We’ve designed Customer Intelligence and Journeys to be easy to deploy and quick and intuitive to set up.

The smaller size of most credit unions and community banks works to their advantage here. We consistently see these customers go live and start seeing measurable value with Customer Intelligence in as little as eight weeks because they’re able to implement, build, test, and launch faster than larger lenders that have more layers of reviews and approvals.

Smaller lenders driving big value: Customer Intelligence case studies

Dart Bank

  • Customer Intelligence in action: Dart Bank uses Customer Intelligence to surface life events and intent signals in real time, enabling LOs to engage members with proactive, personalized support across channels.
  • Driving measurable value: In just six months, Dart Bank drove an additional $48 million in funded loans—all by connecting with borrowers at the right moments of opportunity.

Tucson Federal Credit Union (TFCU)

  • Customer Intelligence in action: TFCU adopted Total Expert Journeys + Customer Intelligence to automate workflows, unify member data, and personalize communications; reducing manual work (e.g., uploading data daily) and streamlining email campaigns.
  • Driving measurable value: Open rates now exceed industry benchmarks (25–26%), and click‐through rates have improved. Campaign build times dropped from weeks to minutes.

Family Savings Credit Union

  • Customer Intelligence in action: Family Savings Credit Union moved from generic, outsourced marketing to using Total Expert Journeys, personalized messaging across channels, and better data visibility internally (bringing together core banking data, email, etc.), enabling them to send more strategic and relevant communications.
  • Driving measurable value: By acting on these insights, Family Savings Credit Union has increased retention and preserved the strong member relationships that fuel long-term success.

Horicon Bank

  • Customer Intelligence in action: Horicon created a Data Insights department, deployed Total Expert for centralized CRM/marketing automation, enabling more intentional targeting and personalized communications, letting staff have visibility into customer behavior across branches and channels.
  • Driving measurable value: The bank is now orchestrating timely, personalized borrower outreach at scale—transforming digital signals into relationship-building opportunities that strengthen loyalty.

Tech- and data-driven strategies have proven over and over that they have the ability to help deepen personal relationships for smaller credit unions and community banks. Our customers are proving that size doesn’t have to be a barrier. It can be an advantage that allows organizations to move quickly, leverage powerful tools like Customer Intelligence, and deliver authentic, personalized experiences at scale.

Learn more about Customer Intelligence and how it can drive consistent growth by enhancing your member and customer relationships.

Partner Ecosystem

[Dark Matter] Unlocking the Mortgage Ecosystem

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Total Expert’s Director of Product Integrations and Innovation, Mike Russell, recently joined Dark Matter Technologies’ Product Evangelist, Craig Rebmann, for an episode of Spotlight Backstage. Their conversation went behind the scenes of the mortgage ecosystem to show how lenders can drive real results by connecting the right people, processes, and technology to create a network of partners and integrations that streamline operations and create better borrower experiences.

From insights on how lenders are optimizing the technology they already use and adopting best practices to finding new ways to improve efficiency without sacrificing service, the key theme was clear: success comes from building a connected ecosystem where your tools talk to each other and your teams have the right support. If you want to see what’s possible when technology and partnerships align, this is the perfect place to start.

Catch the full conversation on Dark Matter Technologies' website >

Unlocking the Mortgage Ecosystem

Lending

Navigating the HPPA Shift: Why It’s a Win for Lenders Who Put Customers First

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Change is the one constant in financial services, but the way we respond to it separates the leaders from the pack. The newly signed Homebuyer Privacy Protection Act (HPPA)—taking effect in March 2026—is a shift in how lenders can access and use consumer credit data. However, while some may view this as another regulatory headache, the reality is far more encouraging: it’s an opportunity to raise the bar on trust, transparency, and customer experience.  It’s another validation of our “Customer for Life” strategy.

This isn’t about dodging restrictions. It’s about recognizing that the playbook for winning customers is evolving—and those who embrace that evolution will come out stronger.

What’s changing?

Under the HPPA, credit bureaus can no longer sell a consumer’s credit file unless the lender meets one of a few narrow conditions:

  • Originated the consumer's current mortgage
  • Service the consumer's current mortgage
  • Obtained clear, documented consent from the consumer
  • As a bank or credit union, maintain an active account for that consumer

There’s even a GAO study on the way, examining how trigger-lead solicitations via text messaging impact consumers—a clear sign regulators are watching the fine line between engagement and harassment.

For lenders who have long relied on trigger leads, this represents a fundamental shift. But for institutions that have invested in building relationships the right way, this is good news.

What this means for lenders

The HPPA shuts the door on spray-and-pray solicitation tactics. But it opens the door wider for lenders who want to compete on trust and relationship strength. Specifically, it creates new opportunities to:

  • Deepen existing customer relationships with proactive, personalized engagement.
  • Capture consent earlier in the journey, before borrowers get lost in a flood of noise.
  • Differentiate in a less crowded, more consumer-friendly marketplace where trust is a true competitive advantage.

The lenders who lean in here will win—not because they shouted the loudest, but because they earned the right to stay connected.

Why this isn’t just another regulatory headache

Consumers have been saying it for years: the barrage of calls, texts, and emails after a mortgage application is exhausting. Some borrowers receive 100+ solicitations within 24 hours. That doesn’t build confidence—it erodes it. And we know this is not how our TE customers run their business.

HPPA represents a rare alignment of regulators, consumer advocates, and lenders themselves. It clears away predatory noise, improves the homebuying experience, and rewards lenders who put relationships at the center of their strategy.

As our Founder & CEO Joe Welu often reminds us, “Trust is the currency of modern financial services.” This law is an accelerant for lenders who understand that principle.

How we're going to help you thrive in a post-HPPA world

We’re not sitting on the sidelines waiting to see how this plays out. Our platform was purpose-built to help lenders engage customers in a way that’s personal, compliant, and built to last. Here’s how we’re making sure you’re ready for March 2026:

  • Proactive guidance: Our mortgage and tech experts are already helping lenders adjust monitoring practices, so they stay compliant without losing momentum.
  • Expand Customer Intelligence: We’re finalizing new capabilities to drive increased awareness and enrichment of your relationships, including expanding CI to all three bureaus, and streamlining our credit improvement alert.
  • Investments in consent: Upgraded features coming soon to capture and respect consumer consent in clear, frictionless ways—including through our ecosystem partnerships.

This isn’t a band-aid or a reaction; it’s an evolution of how modern lenders build sustainable engagement to develop customers for life.

Bottom line: this isn’t a roadblock—it’s an opportunity

Every regulatory change comes with friction. But HPPA isn’t just about compliance—it’s about clarity. It’s about stripping away noise and giving lenders who prioritize relationships a stage to shine.

The lenders who thrive in this new environment won’t be the ones chasing trigger leads. They’ll be the ones investing in trusted, personalized engagement—from first touch through every financial milestone.

And that’s exactly what Total Expert was built to help you do: navigate the shifts, build lifelong trust, and continue winning customers for life.

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