For decades, the credit union value proposition has been anchored in a single, unglamorous word: Rates.
But in today’s hyper-competitive financial landscape, interest rates are a commodity. Everyone has them. When a member can move their deposits to a high-yield fintech account with three taps on a smartphone, competing purely on basis points is a race to the bottom.
So, how do credit unions build a moat around their membership?
During the recent Caribbean Islands Credit Union Educational Cruise, Jennifer Glatt took the stage to answer this exact question. Her session, "Curating Connection," challenged credit union leaders to look outside the financial sector and borrow a playbook from an industry that has mastered the art of loyalty: Hospitality.
Her core thesis is a paradigm shift for retail banking: The Welcome is the ROI. Here is a deeper look at the concepts from her session and how credit unions can move from a model of transactional acquisition to a culture of deep belonging.
1. The Lobby vs. The Branch
In traditional banking, a branch is designed for throughput. It is a place to process a transaction and leave. In hospitality, a "check-in" is just the administrative part of the process—the real goal is the emotional entry point of the "welcome."
Look at modern boutique brands like the Ace Hotel or the Eaton Hotel. They didn't just redesign their rooms; they reimagined the lobby. They turned vast, sterile spaces into vibrant neighborhood hubs where locals, remote workers, and guests naturally co-mingle.
Credit unions need to ask: Why can't a branch be the neighborhood’s financial 'third place'? Instead of rows of teller lines, forward-thinking credit unions are redesigning their physical footprints to feel like communal living rooms. When a space is designed for lingering rather than leaving, you shift the member's psychological posture from "running an errand" to "spending time."
2. Radical Localism and Borrowing Trust
Being a "local" credit union is often treated as a geographic fact—it's just your Zip code. But true hospitality embraces Radical Localism. This means being of the city, not just in it.
You see this in luxury hospitality when a hotel skips the generic corporate art and instead features a local DJ spinning vinyl in the lobby, or partners with a neighborhood roaster for their coffee program.
When credit unions partner with local makers, creators, and small businesses—perhaps by giving them free pop-up space in the branch or featuring their stories in marketing campaigns—they aren't just networking. They are inheriting the deep credibility and trust those creators have already built with the community. It creates a "Circular Economy of Trust": you invest in the community's culture, and the community reinvests its loyalty (and deposits) in you.
3. From Member #4829 to "Guest of Honor"
Data is the lifeblood of modern banking, but too often, it is used purely for cross-selling. ("You have a checking account, would you like an auto loan?")
In luxury hospitality—think of brands like Aman Resorts—data is used for anticipatory service. It is used to anticipate a need before the guest even has to voice it. For credit unions, this means using your CRM and data analytics to drive humanity, not just marketing.
If a member has been depositing funds into a "Wedding Fund" sub-account for 18 months, an automated email offering a joint checking account is fine. A handwritten congratulatory card from the branch manager waiting for them the next time they walk in is hospitality. The feeling of being truly known by an institution is proprietary and impossible for a digital-only mega-bank to replicate.
4. High-Touch in a High-Tech World
Does this mean digital transformation doesn't matter? Absolutely not. But we must categorize our tools correctly.
Access is not engagement. Having a seamless mobile app gives members access and speed. But having a community gives them a reason to stay even when your rates aren't the absolute lowest in town.
The more digital banking becomes, the more valuable the human moments become. Digital is for speed; human is for loyalty.
The Ultimate Lock-In
Ultimately, belonging is the strongest retention strategy in business. Members will easily leave a platform, an app, or a rate. They will not leave a place where they feel they belong.
Hospitality is no longer a "soft skill" reserved for hotels and restaurants. For credit unions looking to survive the next decade of digital disruption, it is the strategic glue that makes your financial products sticky.
