digital marketing

First-Party Data: A Game Changer for Credit Union Growth

Discover how a first-party data strategy can help your credit union grow revenue and efficiency while overcoming competition and digital transformation challenges.

Matt Willis

Jun 16, 2025

6:10

Credit unions that build a strong first-party data strategy can unlock revenue growth and efficiency in a landscape where big banks and FinTech dominate with massive budgets and tech edges.

Poor data tracking can quietly erode revenue potential for small and mid-sized credit unions, especially when leaders are juggling daily demands. CEOs and senior executives face persistent pain points: stagnant membership growth, fierce competition from agile FinTech, and the pressure to digitize operations on tight budgets—all directly impacting revenue expansion. Without robust tracking, you miss critical insights to personalize member experiences and optimize marketing spend, particularly in an era where open banking amplifies data-sharing opportunities. Recent benchmarks show brands leveraging first-party data achieve up to 2.9x revenue growth and 1.5x cost savings, making it a game-changer for resource-constrained credit unions aiming to scale through digital-first strategies and strategic partnerships. First-party data is the key to understanding member needs, behaviors, and preferences, empowering digital-first marketing that drives sustainable revenue in a competitive world. For credit unions focused on growth, harnessing it is essential to turning these challenges into opportunities.

What Is It?

To understand how first-party data addresses revenue-draining pain points like inefficient outreach and low member engagement, let’s start with the basics. First-party data is information collected directly from your credit union’s members through owned channels—your website, mobile app, branch interactions, or other touchpoints. It captures real-time behaviors and preferences to fuel targeted digital strategies, from personalized app notifications to email campaigns. Most critically, it helps leaders tackle growth hurdles by providing reliable insights without the expense of external data sources.

A Better Experience

First-party data enables your credit union to deliver the personalized experiences members demand, directly addressing pain points like member retention and wallet share growth amid digital transformation challenges. Recent surveys reveal that 72% of customers rate personalization as “highly important” in financial services, with over half wanting providers to use their data for tailored interactions, especially through open banking partnerships that enhance data sharing. By analyzing member data from digital touchpoints, your credit union can customize offerings—like pre-approved loans or budgeting tools—delivered at the right moment via apps or online portals. This boosts satisfaction and loyalty, countering revenue losses from churn, which FinTech amplify with their seamless digital experiences.

Hidden Cost #1: Member Experience Damage

Members feel neglected without personalized interactions, leading to higher churn and lost revenue from disengaged relationships—issues that data-driven personalization can turn into growth wins. For smaller credit unions grappling with legacy systems and talent shortages, this strategy transforms everyday interactions into revenue engines.

More Efficient Marketing

Big banks and FinTech operate with hefty ad budgets—U.S. banking and lending ad spend is projected to rise 20% in 2025—allowing them to dominate channels and capture market share. Credit unions, facing tighter margins and competition for younger members, must maximize every marketing dollar to drive revenue without wasteful spending. First-party data supercharges efficiency in digital-first marketing by repurposing member insights you already collect for targeted campaigns. Skip costly third-party data lists; instead, segment audiences for precise ads on social media or search, cutting acquisition costs by up to 83% and boosting ROI by 72% in some cases.

Hidden Cost #2: Wasted Marketing Spend

Broad, untargeted campaigns waste budgets, missing high-potential members and stalling growth—challenges that precise, data-driven outreach overcomes to fuel revenue streams.

Marketing Measurement

Effective tracking with first-party data lets credit unions monitor member responses over time, revealing trends that inform revenue-focused strategies and mitigate risks like economic volatility or regulatory pressures. By combining this data with analytics platforms, you can track digital engagement—such as app usage or online inquiries—and adjust campaigns to maximize impact. This visibility pinpoints what drives growth, from high-engagement loan promotions to loyalty-building content, while identifying underperformers.

Hidden Cost #3: Missed Growth Opportunities

Poor measurement obscures what works, limiting upselling and acquisition potential and capping revenue. For credit union leaders navigating talent shortages and tech upgrades, this data-driven approach ensures marketing decisions directly support revenue goals, fostering long-term viability.

Conclusion

A robust first-party data strategy is indispensable for credit unions aiming to grow revenue amid persistent pain points like competition, digital transformation lags, and efficiency demands. It powers personalized experiences, streamlines digital-first marketing, and sharpens measurement—all while minimizing the hidden costs of bad tracking.

How Your Credit Union Can Win This Fight

Take action now with a partner like M2 The Agency to harness your first-party data effectively. Consolidate insights with a CRM like HubSpot, deploy AI-powered campaigns through M2’s trusted ad networks, and leverage expert support to track and optimize engagement. By committing to ethical data practices and digital-first strategies, your credit union can transform member insights into a competitive edge, driving revenue growth and loyalty against big banks and FinTech in 2025 and beyond.