In today’s financial landscape, achieving Primary Financial Institution (PFI) status isn’t just a nice-to-have—it’s the difference between a shallow relationship and a lasting one.
When your credit union becomes the place members deposit their paychecks, pay their bills, borrow for life’s goals, and track their progress, the results are transformative:
Higher engagement
Deeper trust
More products per member
Stronger, more resilient revenue
But getting there is harder than ever.
The Challenge: Competing in a Digital-First World
Digital-first banks are no longer just disruptors—they’ve become the default choice for younger generations.
Only 30% of Gen Z consider a traditional financial institution their PFI
45% cite a digital bank or fintech instead (Cornerstone Advisors)
As fewer members rely on branches, and more choose apps like they choose streaming services, credit unions must rethink how they build loyalty.
Why PFI Status Matters
According to Raddon Research:
Members who identify their credit union as their PFI are 5x more profitable than those who don’t.
They’re more likely to hold auto loans, credit cards, and mortgages with the credit union.
These aren’t just deeper relationships—they’re stickier, more profitable, and more impactful for long-term sustainability.
The Credit Union Advantage
Unlike big banks or faceless fintechs, credit unions have a unique foundation: relationships. When combined with timely, intelligent digital engagement, this creates a real competitive edge.
To earn PFI status, leading credit unions are deploying strategies that prioritize:
Real-time digital wallet provisioning
In-session cross-sell for loans and deposits
Smart onboarding experiences that don’t just capture interest—they convert it
Member Profitability: From Taboo to Tactical
In credit union circles, “member profitability” can feel like a dirty word. But ignoring it means missing critical insights about:
Behavior patterns
Relationship depth
Long-term sustainability
Not every member relationship is equal—and that’s okay. Typically, member bases fall into three groups:
~20% Highly Profitable: Multiple products, strong deposits, loan relationships, and PFI status.
The Majority: Marginally profitable, using one or two products.
A Small Subset: Significantly unprofitable, requiring high servicing or creating charge-offs.
The goal isn’t to cherry-pick, but to elevate more members into that top 20%. That starts with data-driven insights:
What products and journeys define profitable members?
What common traits exist among those close to the PFI threshold?
How can you proactively nudge marginal members into deeper engagement?
What Credit Unions Can Do Now
To accelerate PFI status, credit unions should:
Invest in onboarding that converts: Optimize digital account opening and loan flows with embedded offers, minimal friction, and real-time ID intelligence.
Make switching effortless: Enable instant wallet provisioning, direct deposit switching, and real-time card funding to reinforce the PFI connection.
Use data to deepen engagement: Apply relationship scoring, behavioral triggers, and journey mapping to guide members to their next best product—before they churn.
The most profitable members are almost always PFI members. They’ve chosen your institution not just for rates, but for trust—and for being their financial home.
Strategic Questions for Leaders
As you plan for 2026, ask your team:
What percentage of our members consider us their PFI today?
What behaviors and product combinations define our top 20% most profitable members?
How are we nudging marginally profitable members toward deeper engagement?
Are our digital onboarding experiences truly designed to capture and activate PFI relationships?
Continue the 2026 Strategy Blog Series
This article is Part 6 of our series: The Priorities That Matter Most: Credit Union Strategy for 2026.
➡️ Intro: 2026 Strategy Starts Here: What Winning Credit Unions Know That Others Don’t
➡️ Part 1: Financial Health Is Not a Nice-to-Have, It’s a Strategic Imperative
➡️ Part 2: Channel Strategies: Bridging Branch and Digital for Seamless Member Experience
➡️ Part 3: Serving Younger Demographics: Building the Future Membership
➡️ Part 4: Deposit Growth Is Not a Rate Game Anymore
➡️ Part 5: Lending Efficiency and Risk: Balancing Speed and Sound Decisions
➡️ Part 6: Becoming the Primary Financial Institution: The Path to Deeper Member Value (you're here)
➡️ Part 7: Innovations in Collections: Enhancing Member Experience
Stay with us. Each post explores a strategic lever that can help your credit union grow stronger, deeper, and smarter in 2026.
Want the Complete Playbook?
📘 Download the 2026 Credit Union Strategy eBook for the full set of insights, best practices, and actionable frameworks to align your leadership team and build sustainable growth in the year ahead.
