The data advantage: How banks & CUs use first-party data to drive growth

Banks and credit unions are sitting on a goldmine of data—but most aren’t tapping into it to its full potential. While third-party cookies and broad demographic assumptions are on the way out, first-party data—information your institution collects directly from customers and members—is more powerful than ever. Used well, it’s the key to unlocking highly personalized experiences that build trust, increase engagement, and improve retention.

First-party data is your most powerful tool. Here’s how to use it to deepen relationships and drive measurable growth.

Why first-party data matters

With increasing expectations for personalized, seamless digital interactions, relying on broad, one-size-fits-all messaging just won’t cut it. Customers and members want their banks and credit unions to understand them—and first-party data is the most direct and trustworthy way to make that happen.

Unlike third-party data (which is purchased from outside sources), first-party data is:

• Accurate and privacy-compliant, since it’s collected directly
• Rich in behavioral signals, such as transactions, product usage, and engagement history
• Actionable, when paired with the right tools and strategy

‍Key Takeaway:

First-party data gives you a direct line to your customers’ and members’ actual behaviors and needs. It’s the foundation for meaningful personalization.

What consumers expect from their financial institutions

Today’s account holders—especially younger generations—are digital-first. They expect the same level of personalization from their financial institutions that they get from e-commerce or streaming platforms. That means:

• Proactive guidance based on real activity
• Relevant offers and services at the right time
• Seamless, cross-channel experiences

‍Key Takeaway:

Personalization isn’t optional—it’s expected. And if your institution isn’t delivering it, competitors will.

Turning data into action

So, how do you actually use first-party data to personalize experiences?

• Consolidate your data. Bring together account, transactional, digital engagement, and service data into one unified view of each customer or member.
• Use automation and intelligence. Tools like AI can analyze behavior patterns and trigger timely, relevant experiences—whether it’s a reminder to fund an account, set up direct deposit, or explore a new product.
• Start small, scale smart. Begin with one or two high-impact use cases (e.g., onboarding or cross-sell campaigns), measure impact, then expand.

‍Key Takeaway:

Personalization is a journey. Start where you can, prove ROI, and grow from there.

Building trust through value and transparency

It’s not just about data collection—it’s about trust. Customers and members are more willing to share data when they see a clear benefit, like financial tips tailored to their goals or alerts that help them avoid fees.

To do this well:

• Be clear about what data is collected and why
• Show value in every personalized interaction
• Stay compliant with privacy regulations like GDPR and CCPA

‍Key Takeaway:

Personalization should always be rooted in respect and transparency.

Final thoughts

Personalization powered by first-party data is no longer a nice-to-have—it’s a competitive advantage. Banks and credit unions that use this data wisely will be better positioned to meet expectations, build trust, and drive long-term growth.

At Digital Onboarding, we believe first-party data is one of the most powerful tools at a financial institution’s disposal. Our platform helps banks and credit unions put that data to work—turning it into automated, personalized journeys that increase engagement, drive product adoption, and build lasting relationships.

Whether you're onboarding new members and customers, promoting eStatements and direct deposit, or guiding people through complex journeys like mergers, our platform helps you deliver the right message, at the right time, through the right channels.