By Cindy Draper
With mobile banking on the rise, account holders are more transactional—and less loyal—than ever. The Financial Brand recently reported that 76% of consumers considered themselves likely to switch primary financial institutions. Meanwhile, the average account holder has multiple financial relationships, including traditional financial institutions and fintechs. Choice is everywhere, and consumers aren’t hesitant to explore it.
This makes turning account holders into true advocates who recommend and champion your institution both more challenging and more critical. For community banks, advocacy drives measurable growth.
So, how can you foster loyalty and advocacy in a crowded market? Here are six proven strategies rooted in data, experience, and practical success.
In today’s competitive landscape, sustainable growth depends on building loyal advocates.
1. Build Trust Through Transparency
Trust remains the cornerstone of banking relationships. Even though consumers use multiple institutions, they trust their primary bank twice as much as tech providers for advice and financial products. According to Edelman, 88% of consumers rank brand trust as a key factor in purchase decisions.
But trust is fragile. Transparency about fees, rates, and the use of data is essential. This includes artificial intelligence. Institutions that clearly communicate how AI enhances service while safeguarding security earn credibility.
Practical step: Explain benefits and AI features openly, and use engagement tools that provide real-time, tailored insights.
2. Put Account Holders First
Instead of pushing products, listen for needs and offer solutions that benefit the consumer. This allows you to position yourself as a trusted adviser and shifts the focus from selling to partnering.
Offer personalized insights in your mobile app, and provide proactive budgeting, savings, and investing support. Leading with value builds trust, and once account holders view you as a true partner, referrals will come naturally.
3. Personalize Every Interaction
Generic messaging no longer resonates. People want digital engagement that reflects their behaviors, preferences, and history—not one-size-fits-all outreach.
AI-driven profiling enables dynamic, personalized interactions that feel like natural conversations. For example, if someone frequently uses their debit card for groceries, consider surprising them with a real-time cash-back bonus or rewards discount. These moments create memorable experiences that inspire account holders to advocate.
4. Elevate Service as a Differentiator
Exceptional service is a community institution’s competitive edge. However, only 32% of consumers feel that service has improved in the last five years, and just 18% believe that technology has enhanced their experience.
Ways to stand out:
- Create dedicated service roles for consistency and care.
- Transform mobile apps into hubs where requests can be tracked in real time.
- Elevate chatbots into trusted advisors rather than simple FAQ tools.
Branches still matter too, 65% of consumers view them as symbols of stability. As a result, the ideal model blends digital convenience with personal attention, tailored to each community’s specific needs.
5. Deliver Rewards That Resonate
While 60% of consumers expect relationship-based rewards, only 45% are satisfied. That leaves a clear opportunity for community banks.
The best programs move beyond generic perks by:
- Rewarding the moment with relevant incentives at purchase or transaction points.
- Rewarding behavior by recognizing healthy habits like savings growth or on-time payments.
- Rewarding the relationship with loyalty milestones that celebrate tenure.
- Tailored referral programs and meaningful incentives help close the satisfaction gap and drive advocacy.
6. Measure and Optimize Continuously
Nurturing advocacy takes ongoing refinement and effort, made possible through strategic data use. So, it’s important to track engagement, participation, and satisfaction using key KPIs such as:
- Net Promoter Score (NPS) for loyalty potential.
- Churn and retention rates to spot disengagement early.
- Referral rates to measure advocacy-driven growth.
- ROI of rewards and referral programs to ensure returns.
By measuring and adjusting, you can strengthen loyalty, recognize advocates meaningfully, and create a growing base of brand champions.
BONUS: Empower Your Team as Advocates
Employees can be your most powerful promoters. ABA Banking Journal notes that 50 employees sharing one post with 300 connections each can potentially reach 15,000 people, creating a stronger impact than many ads. And Nielsen research shows 89% of consumers trust recommendations from people they know most.
To build an employee advocacy program:
- Define clear goals—awareness, reach, or engagement.
- Start with social-savvy, enthusiastic team members.
- Provide easy-to-use content, templates, and guidelines.
- Recognize and encourage participation.
- Track and refine performance.
Advocacy Is Built, Not Bought
Advocacy doesn’t happen by chance. It’s the product of deliberate, sustained strategies focused on trust, personalization, service, and recognition. By applying these six approaches, your institution can strengthen relationships, spark referrals, and grow deposits.
In a market with endless options, loyal advocates are the ultimate competitive advantage. For a broader look at today’s deposit growth challenges and solutions that work, explore our white paper.
About the Author
Cindy Draper is the Director of Account Acquisition & Training at Velocity Solutions.