We’re halfway through 2025, which is a good time to pause and reflect on your financial institution’s goals. Are you where you expected to be? So far, it’s been a year of steady pressures punctuated by rapid transformation.
Whether you’re trying to hit deposit growth targets, improve service levels or adapt to a shifting compliance landscape, there’s no shortage of hurdles.
Here’s a mid-year assessment across seven key areas that many community banks and credit unions are working toward, along with questions every leader should be asking right now.
Goal 1: Grow deposits
Where things stand: Deposit growth across U.S. financial institutions is expected to remain modest through the rest of 2025. The Office of the Comptroller of the Currency estimates a sluggish average deposit growth between 4 to 4.5 percent. That’s well below the post-pandemic highs seen just a few years ago.
Add to that growing competition for accounts. Larger banks offer higher yields and targeted incentives, while fintechs are winning deposit share with frictionless experiences. Credit unions saw a 3.6 percent rise in deposits from Q1 2024 to Q1 2025, but face persistent margin pressure and limited pricing flexibility.
Why it matters: Community banks and credit unions may not have the resources to compete with pricey incentives (which can lead to costly churn), but they do have tried-and-true ways to earn and keep deposits: by building relationships and through word-of-mouth referrals.
Mid-year questions to ask:
- Are you focused on growing relationships, or just total balances?
- Are you targeting high-value relationships through personal referrals?
- Is your digital account opening process frictionless?
Goal 2: Increase engagement
Where things stand: Consumers want more than transactions; they want value. Research by Accenture uncovered that 60% of banking customers want relationship-based rewards, yet only 45% are satisfied with what they receive.
Why it matters: Engagement fuels loyalty. Loyalty drives profitability. In a market where switching is easier than ever, customer trust and emotional connection are what keep account holders sticking around. And that’s built through strategic engagement.
Mid-year questions to ask:
- Are your engagement strategies built around personalization, transparency and trust?
- What data do you use to track engagement?
- Are you using the best channels to reach account holders where they are?
Customers crave connection, not just convenience — meaningful rewards are key to lasting engagement.
Goal 3: Improve consumer liquidity
Where things stand: U.S. consumers are showing signs of financial strain amid higher prices, lower job confidence and more stringent lending requirements. Overdraft protection is something that many people from various backgrounds rely on to make ends meet between paychecks. And it’s a service that an overwhelming majority of consumers find to be valuable .
Why it matters: Liquidity impacts your bottom line. Financial institutions that offer smart consumer liquidity options can protect themselves from risk while maintaining account holder loyalty. Overdraft limits and short-term, small-dollar loans that use data intelligence to set limits based on an account holder’s ability to repay shield both parties from overextending themselves.
Mid-year questions to ask:
- Are your consumer liquidity products fair, competitive and accessible?
- Do you have a data-backed strategy in place if borrowing behavior shifts quickly?
- Do your liquidity options follow best practices set by regulators?
Goal 4: Maintain compliance
Where things stand: The first half of 2025 was unpredictable. A Consumer Financial Protection Bureau (CFPB) rule was introduced in December 2024 that would cap overdraft fees between $3 and $14, with stricter disclosure requirements for overdraft loans applied to financial institutions with $10 billion or more in assets. Then, in May 2025, the White House overturned this rule.
Despite this move toward less regulation, actual compliance pressure hasn’t disappeared. Community banks and credit unions still need to address regulatory rules and prepare in areas such as overdraft practices.
Why it matters: Compliance gaps not only risk steep penalties but can also push account holders toward more transparent competitors. It’s best for both financial institutions and their account holders when services err on the side of compliance.
Mid-year questions to ask:
- Are you auditing high-risk areas like overdraft, AI-enabled decision-making and consumer lending?
- How quickly can your financial institution respond to evolving regulatory expectations?
- Do you have access to a compliance expert who has their fingertips on the pulse of regulatory changes?
Goal 5: Exceed account holder expectations
Where things stand: Consumer expectations continue to climb across all industries. Today, just “average” service can cost you: 23 percent of consumers would be unlikely to return to a business after receiving merely satisfactory customer service. Service speed, digital ease and consistent support across channels are what define satisfaction today.
Why it matters: Your financial institution’s reputation, retention and referral potential depend on how well you meet these rising expectations—not just in-branch but in your app, over chat and everywhere in between.
Mid-year questions to ask:
- Are you tracking satisfaction across digital, branch and contact center experiences?
- Have you compared your financial institution’s digital capabilities to competitors?
- What are you doing to stand out and create memorable experiences for account holders?
Goal 6: Increase productivity
Where things stand: Community banks and credit unions are under pressure to do more, with less. Nearly 90 percent of surveyed financial institutions felt their processes could be more efficient, signaling a readiness to adopt productivity solutions.
Why it matters: Institutions that leverage automation, generative AI and third-party digital solutions can cut out inefficiencies and start delivering real value.
Mid-year questions to ask:
- What processes could be automated in the next six months to cut costs, reduce turnaround time and/or free up more time for people to work on higher-value tasks?
- Are your teams equipped to use AI and automation tools effectively?
Efficiency is no longer optional. Embracing automation and AI is how institutions will do more with less.
Goal 7: Optimize tech stack with modern solutions
Where things stand: Banks and credit unions continue to move away from legacy technology in favor of open-source systems and cloud-native platforms to deliver the latest services to account holders. According to Accenture, this shift is enabling faster innovation and improved resilience.
Why it matters: Technical debt (the result of choosing speed or cheap fixes over scalable solutions) slows everything: innovation, compliance, customer experience and growth. Financial institutions that modernize their tech stack with proven software and open-source systems are better equipped to adapt, pivot, add new services and lower long-term operating costs.
Mid-year questions to ask:
- Do your current and prospective tech solutions work seamlessly with your core system?
- Are you piloting data-intelligence tools that can help you meet growth, engagement and consumer liquidity goals?
Don’t just catch up… get ahead
Reacting to market conditions will only keep you playing catch-up. After revisiting these seven key goals, it’s clear that sustainable growth requires more than quick fixes: it demands holistic strategies rooted in deeper engagement and lasting relationships.
For an actionable guide on acquiring, retaining, and engaging account holders effectively, download our
white paper and start building long-term strategies that keep your institution ahead.
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Charles Baker, Director of Client Service
Charles brings with him over 26 years of executive level sales, client services and operations experience in the banking, technology, and consulting services industries. As the Director of Client Service for CSI’s Velocity team, he oversees a team of client service managers in delivering and optimizing Velocity solutions. He works closely with not only his team and the clients, but all Velocity product owners and steering committees. Since Charles’ responsibilities touch on all aspects of CSI’s Velocity products and their deliveries, he works closely with the sales team as a subject matter expert and builds the financial performance models utilized in the sales process to set expectations with the prospective client. He holds a Bachelor of Business Administration degree from Texas State University and lives in Austin, TX with his wife and two daughters.