White Clay shares five keys for growth and stability in a changing market

White Clay, a leading provider of relationship profitability and analytics software for banks and credit unions, advises financial institutions to focus on human-centered digital strategies in 2026, using data to better understand current and potential accountholders, strengthen deposits and optimize net interest margin (NIM).

While deposit growth and margin compression are likely to remain key concerns in the coming year, banks and credit unions should not overlook their accountholders who are so critical. White Clay’s annual survey on banking relationships found that 67% of FI accountholders do not feel truly known by their primary institution, while over half of those surveyed (53%) would consider switching institutions if another offered a more personalized experience.

Banks and credit unions must view accountholder interactions as ongoing relationships rather than merely transactions. By focusing on humanity and profitability, institutions can deepen and leverage these connections which are so vital to their health and long-term growth. This is especially important as nonbanks and fintechs continue to aggressively target consumers with slick digital experiences, and institutions risk becoming secondary or tertiary institutions, or possible acquisition targets.

In turn, financial institutions should prioritize these five areas for 2026:

• Use intelligence to better understand customers and build deeper relationships
  
  Advanced analytics should go beyond automation to deliver relevant, behavioral insights. True value comes from turning data into actionable intelligence by segmenting customers effectively to personalize offerings, boost margins and strengthen relationships.
  
  
• Evolve to deliver humanity with technology in the digital landscape
  
  Institutions should transform branches into “client experience centers,” shifting teams from order takers to proactive relationship managers. Combining the right tech with empathy can create meaningful interactions and drive more organic, effective opportunities.
  
  
• Focus on building a strong deposit franchise
  
  Deposit strength remains the foundation of valuation for institutions. Institutions that fail to protect and grow their core deposit base risk losing both market share and stock price stability.
  
  
• Optimize NIM and balance sheets
  
  Adopting relationship-based pricing especially for critical commercial accounts, and targeting those operating relationships, is key. Institutions should identify and improve tightly priced loans and strive to better understand deposit pricing sensitivity to optimize interest expense so they can maintain profitability amid rate volatility.
  
  
• Prepare for increased merger and acquisition (M&A) activity
  
  With organic growth slowing and nationals and fintechs continuing to capture more market share, M&A will likely accelerate in 2026. It is vital institutions understand their own churn rates and problem areas.

“Financial institutions are at an inflection point,” said Mac Thompson, founder and CEO of White Clay. “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.”

About White Clay

White Clay is a fintech that guides banks and credit unions to enhance customer relationships and profitability. For nearly 20 years, its software has offered financial institutions a comprehensive view of customer interactions and insights to boost daily business decisions. By aligning goals with shareholder value, White Clay improves banker performance and pricing strategies. Trusted by leading financial institutions, the company’s innovative approach continues to transform relationship and profitability optimization. For more information, visit www.whiteclay.com or follow us on LinkedIn.

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