White Clay, a provider of relationship profitability and analytics software for banks and credit unions, has advised financial institutions to prioritize human-centered digital strategies for 2026, leveraging data to enhance accountholder understanding, strengthen deposits, and optimize net interest margin (NIM).
The company’s annual survey on banking relationships indicated that 67% of financial institution accountholders do not feel understood by their primary institution, with over half (53%) considering a switch if offered a more personalized experience. White Clay emphasizes that institutions must view accountholder interactions as ongoing relationships rather than mere transactions to foster long-term growth and avoid becoming secondary institutions or acquisition targets amidst competition from nonbanks and fintechs.
To address these challenges, White Clay identified five key priority areas for financial institutions in 2026:
Utilizing intelligence to better understand customers and build deeper relationships: Advanced analytics should move beyond automation to provide relevant, behavioral insights. The value lies in converting data into actionable intelligence through effective customer segmentation, enabling personalized offerings, boosting margins, and strengthening relationships.
Evolving to deliver humanity with technology in the digital landscape: Institutions should transform branches into client experience centers, shifting staff from transactional roles to proactive relationship managers. The integration of technology with empathy can foster meaningful interactions and generate more organic opportunities.
Focusing on building a strong deposit franchise: A robust deposit base remains fundamental to an institution’s valuation. Failure to protect and expand core deposits risks declines in market share and stock price stability.
Optimizing NIM and balance sheets: Adopting relationship-based pricing, particularly for commercial accounts, and targeting operational relationships are crucial. Institutions should identify and improve tightly priced loans and gain a deeper understanding of deposit pricing sensitivity to optimize interest expense and maintain profitability amid rate volatility.
Preparing for increased merger and acquisition (M&A) activity: With organic growth slowing and national banks and fintechs capturing more market share, M&A activity is expected to accelerate in 2026. Institutions must understand their own churn rates and problem areas.
Mac Thompson, founder and CEO of White Clay, stated, “Financial institutions are at an inflection point. Today’s consumers expect personalized, meaningful experiences, and banks and credit unions must learn to combine their technology with human insight to better deliver them or their competitors will. At the same time, optimizing profitability through data-driven strategies is essential for navigating the ongoing pressure of deposit growth, margin compression and competition from both large nationals and fintechs alike. These priorities are all interconnected and it starts with defining, understanding and strengthening accountholder relationships.”
White Clay is a fintech company based in Louisville, Kentucky, that provides software to guide banks and credit unions in enhancing customer relationships and profitability. For nearly two decades, its software has offered financial institutions a comprehensive view of customer interactions and insights to improve daily business decisions, banker performance, and pricing strategies.
