Agility beats scale: How community banks and credit unions can outpace the Top 20

The friction of switching accounts has always been a reliable anchor for financial institutions — get customers in the door, signed into an account, tied into autopay subscriptions and utility bills, and let inertia do the rest.

This de facto “stickiness,” however, shouldn’t be taken for granted. New tools are making it possible for customers to reroute direct deposits, update subscription payments, and move their financial lives with just a few clicks.

A top 20 FI in the U.S. recently announced that it has deployed such a solution, as covered in The Financial Brand. It sounds impressive, but the reality is that large institutions as a whole will be slow to implement these kinds of services due to cost, scale, and red tape.

Furthermore, large banks don’t necessarily want to be this frictionless — effectively starting an arms race that could make it just as easy for their own customers to walk away. Think back to cell phone number portability. It was a game-changer for consumers, but you didn’t see carriers rushing to advertise it, and you’d be hard pushed to find references to it today on their websites. Do you think the top 20 FIs really want to open this can of worms? 

Community banks and credit unions, on the other hand, are well-positioned to seize this moment. With the right platform, smaller institutions can move faster — delivering the same seamless account switching experience and winning on engagement where bigger players can’t.

Why agility matters more than scale in banking

For decades, financial institutions relied on “stickiness.” Customers stayed because switching was painful. However, with account switching tools gaining traction, inertia is no longer the moat it once was.

What matters now is speed:

• Speed to onboard new accounts into active usage.
• Speed to convert account holders into primary relationships.
• Speed to adapt proactively to customer needs and market shifts.

Community banks and credit unions can move from idea to implementation in weeks — something that top 20 banks simply can’t.

More than moving fast: trust and personalization

Agility is only part of the equation. Smaller institutions also have other significant advantages that megabanks struggle to replicate:

Personalization at scale: Community institutions know their members. They can tailor campaigns, communications, and financial guidance in ways that feel human and relevant — not like a one-size-fits-all national rollout.

Trust and mission: Customers trust local banks and credit unions to act in their best interest. That trust, reinforced with consistent engagement, creates long-term loyalty that no slick mobile app can buy.

Community connection: Big banks chase efficiency. Smaller institutions invest in relationships, building loyalty not just with individuals but with entire communities.

The combined superpowers of agility and hyper-personalization mean that today’s community banks and credit unions can meet the expectations of today’s discerning customers and members.

Digital Onboarding: making switching seamless

Digital Onboarding enables smaller institutions to deliver seamless account switching and enhanced engagement. Some recent examples:

• Peoples Advantage FCU achieved default payment switches at a rate four times higher than average, simplifying recurring payment setup (source).
• OCCU increased eStatement adoption by 50% and cut enrollment time by 63% (source).
• USALLIANCE Financial boosted digital banking enrollments by 300%, with nearly 90% of new members enrolling (source).

Together, these results show how Digital Onboarding empowers community banks and credit unions to turn the challenge of switching into a competitive advantage, deepening relationships from day one. We have even developed a tool that seamlessly blends cross-channel engagement directly into your digital banking platform.

Final word

Top 20 banks may move slowly, but community banks and credit unions don’t have to. With agility, personalization, and trust, powered by Digital Onboarding, smaller institutions can make switching seamless, deepen relationships from day one, and win where scale alone can’t.

Learn how Digital Onboarding helps community banks and credit unions turn agility into growth.