How Financial Institutions Can Increase Loyalty & New Revenue with Embedded Investing

Brian Desjourdy — Thu, 02 Apr 2026 20:31:39 GMT

As customers conduct more of their financial lives online, they’re increasingly seeking clarity, efficiency, and trust. For banks and credit unions, embedded investing presents an opportunity to deepen relationships, retain deposits, and unlock new revenue while doing what they already do best.

Expectations for digital banking are increasing—and expanding

Digital banking is no longer a competitive edge. It’s table stakes. Most customers now manage their money primarily through mobile apps or web browsers, and expectations have shifted from “does this function?” to “does this make my financial life easier?”

Research consistently points to the same conclusion. Customers want digital experiences that are simple, connected, and intuitive, and the stakes for financial institutions are measurable:

77% of consumers prefer managing bank accounts digitally
83% believe digital innovation has made financial services more accessible
76% say they would consider switching banks if they found one that better met their needs

Investing is increasingly part of that equation. More than one in ten customers already inclined to switch their primary bank or credit union cite gaps in access to investing or wealth management. Among this group, loyalty falls to a –50 Net Promoter Score, signaling deep dissatisfaction, elevated churn risk, and a greater likelihood of negative word‑of‑mouth.

While investing access alone won’t drive every customer to churn, unmet expectations tend to align closely with relationship breakdowns among customers already at risk.

A digital paradox: when more tools lead to less momentum

Before jumping to solutions, it’s worth acknowledging a core tension at the center of digital channels: customers want strong experiences, but technology itself can introduce risk. For instance, research on mobile health apps shows that while users value digital access, they quickly experience fatigue when it's spread across too many tools. The same pattern is increasingly visible in financial services. App overload—multiple platforms, logins, dashboards, and providers—can create friction rather than freedom.

In finance, this fragmentation compounds a broader emotional shift. As traditional milestones like homeownership feel increasingly out of reach, many consumers—especially younger ones—begin to deprioritize long‑term financial health. People may appear liquid on paper, but when progress feels unclear or unattainable, disengagement and risk‑seeking behaviors become more likely.

Just as fragmented health data makes outcomes harder to manage, money dispersed across disconnected financial systems becomes harder to understand and control. Education becomes inconsistent, guidance fragmented, risk more difficult to assess, and progress harder to measure. The outcome isn’t merely inconvenience but a breakdown in clarity and confidence, undermining the sense of control that underpins true, holistic financial well‑being.

Financial services are consolidating around embedded experiences

Some players in the digital financial marketplace are moving toward fewer, more complete experiences. Finance is becoming increasingly embedded into everyday life, entry points are simpler, and the addressable market is expansive.

At the same time, competition for the primary financial relationship is intensifying. Large institutions and digital platforms alike aim to own customers’ daily financial habits.

This raises a strategic question for many banks and credit unions: How do you modernize the experience without eroding the trust and personal connection that define your mission?

Trust remains a critical differentiator

Amid rapid change, one constant remains. When financial decisions carry long‑term consequences—e.g., retirement, investing, and building long-term stability—trust often outweighs novelty. Customers may experiment with new tools, but they often place their financial futures with institutions they view as accountable, reliable, and transparent.

Many community banks and credit unions already occupy this position. They manage everyday finances and maintain real relationships with customers and members, respectively. Rather than add complexity, embedding that trust into investing can help reduce it—allowing spending, saving, and investing to feel like one interwoven system.

Embedded investing: bring financial growth closer to home

Forward‑looking institutions are exploring how to integrate investing directly into existing digital banking experiences, keeping customers within familiar, trusted environments rather than sending them elsewhere.

The goal is practical: make investing easier to start, easier to understand, and easier to manage, while positioning the institution as a true one‑stop financial partner.

Common elements of effective embedded investing strategies include:

Investing lives alongside checking and savings accounts
Institutions offer self‑directed investing, guided options, or both (based on strategy and resources)
Education is consistent, straightforward, and designed to address today’s investing landscape

When implemented thoughtfully, embedded investing simplifies participation while reinforcing continuity across a user’s financial life. The result is stronger engagement, more durable multi‑product relationships, and sustainable revenue models without transactional pressure.

A generational signal institutions can't ignore

Younger generations are often characterized as disengaged or speculative, but the reality is more nuanced. Despite economic uncertainty, younger consumers are investing earlier and, in some cases, favoring diversified, accessible approaches:

56% of U.S. Gen Z already own investments
Gen Z is entering the market earlier than previous generations
Over 80% of Gen Z retirement investors hold ETFs (with Millennials close behind at roughly three‑quarters of respondents)

Many younger customers are digitally fluent but skeptical of traditional financial models. The gap isn’t so much interest but rather confidence. They expect clarity, relevance, and guidance tied to real‑world goals. Institutions that meet those expectations can step into a role customers are actively seeking.

Turn embedded investing into a strategic advantage

Capitalizing on this moment doesn’t require total reinvention. Most banks and credit unions can start their journey by:

Identifying a clear objective
Focusing on one or two priority segments to pilot
Integrating investing functionality into existing digital journeys

As financial services grow more standardized and impersonal, institutions have an opportunity to stand apart by offering clarity, continuity, and trust. Success shows up in outcomes like sustained engagement, stronger relationships, and customers who feel more confident (and more connected) to their financial institution.

For leaders exploring how embedded investing fits into their broader strategy, the opportunity goes beyond adding a new product. It’s about reinforcing the institution’s role at the center of customers’ financial lives.

Curious what that could look like for your team? Schedule a demo today.

The Greens is incubated at the Fidelity Center for Applied Technology (FCAT®) with brokerage services provided by Green Pier Fintech LLC. 1256688.1.0

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