The trend: Financial institutions (FIs) are obsessed with acquiring new customers. But prioritizing it over other important goals won’t work in the long run. 

But why? Simply opening new accounts is not a strong measure of success. Remember: Fintechs have outpaced banks in checking account openings but have struggled to compete with traditional FIs’ account primacy. The real value of customer acquisition comes from what happens next, per The Financial Brand. That’s because:

• New accounts often turn inactive shortly after they’re opened.
• The cost of digital ads is rising.
• AI-generated content is flooding the digital sphere, making it harder for FIs’ content to stand out.
• Customers often switch to banking competitors that offer a better experience, better rates, or greater trustworthiness. 

Prioritizing the steps after customer acquisition will bolster FIs’ long-term strength in an increasingly competitive market.

Next steps: The steps FIs should take to ensure the customer journey doesn’t end right after it starts include:

• Investing in a strong onboarding experience. Create incentives—such as rewards and personalized insights—for customers to make their second transaction, not just their first. And seamless onboarding journeys particularly help strengthen ties with younger customers, who have high expectations for great experiences.
• Rethinking their brands. FIs can stand out by figuring out what makes them unique and communicating that consistently. If a brand or messaging is indistinguishable from the next FI, consider a rebrand or brand refresh.
• Doubling down on AI. From ensuring FIs show up in generative search engine results to supercharging the customer experience with AI agents, finding new ways to implement the technology to better engage customers can be a valuable investment.