How banks & credit unions turn holiday spending into year-round loyalty

The holiday season is more than gift shopping; it’s one of the richest sources of behavioral data for financial institutions. As consumers spend, save, and engage in unique financial behaviors, banks and credit unions have a rare opportunity to capture data that reveals not just who their customers and members are, but how they think, transact, and prioritize. This holiday data can become a foundation for building deeper, more lasting relationships.

What holiday data is telling us

Consumers are spending bigger, earlier, and more online.

• U.S. holiday retail sales rose 3.8% in the 2024 season, according to Mastercard SpendingPulse. Money Times+1
• Online holiday spending is booming: Salesforce reported that Americans spent a record $282B online during the 2024 holiday season. Salesforce
• According to Ipsos, 68% of U.S. consumers in 2024 said they intended to do a majority of their holiday shopping online — up from 60% in 2023. Ipsos
• A KPMG consumer survey found that nearly half of consumers (49%) planned to spend more on holiday shopping in 2024 than the year before. KPMG

Why holiday spending matters to financial institutions

Recent data shows that holiday spending drives significant increases in debit and credit card usage, digital banking logins, and account funding. Yet, without structured strategies to capture these behaviors, many institutions will lose the chance to build lasting engagement.

Consider this: Account holders who actively engage with their account during high-activity periods are far more likely to maintain long-term usage habits, adopt additional products, and participate in digital programs throughout the year. The key is to bridge the seasonal spike to ongoing behaviors that matter.

The ROI of year-round loyalty

Converting seasonal activity into long-term engagement is good for relationships and the bottom line. Account holders who adopt multiple products early in the relationship generate higher balances, lower attrition, and greater lifetime value.

For credit unions and community banks, this approach also reinforces differentiation. While larger institutions may focus on flash promotions and broad campaigns, smaller institutions can leverage personalized, strategic follow-up to create meaningful connections that are remembered and rewarded with loyalty.

Putting it into practice

To maximize the holiday season’s impact:

• Identify early engagement opportunities: The first 30–90 days are critical. Holiday-related transactions provide insight into which members are likely to become active, engaged account holders. Use these interactions to encourage key behaviors like enrolling in e-statements, setting up direct deposit, or activating mobile banking.
• Leverage data to personalize follow-up: Every purchase, every payment, every login is an opportunity to understand preferences and tailor communication. Account holders who receive relevant, personalized guidance are significantly more likely to adopt additional products and stay active year-round.
• Automate strategically: Manually following up with thousands of holiday-engaged customers and members is impractical. Automated campaigns triggered by specific actions can maintain engagement without adding operational strain.
• Create holiday-to-year-round campaigns: Design campaigns that extend the holiday experience. Reward programs, savings challenges, or personalized product recommendations that start in December can continue into January and beyond. This keeps account holders engaged and positions your institution as a partner in their financial wellness.

Conclusion

Holiday season data is far more than seasonal sales. It's a window into how your customers and members spend, prioritize, and behave under the pressures and joys of the festive season. Financial institutions that treat this period as a catalyst for deeper relationships can transform a spike in transactions into sustained loyalty, increased product adoption, long-term growth, and engagement strategies that last well beyond December.