Commissioned by Nymbus, the report highlights how institutions like MSUFCU, Citizens Bank of Edmond, Vantage West CU, and PeoplesBank are capturing new markets with affinity-driven digital brands
A new report from Cornerstone Advisors, “The New Growth Playbook: Vertical and Niche Strategies,” commissioned by Nymbus, uncovers a seismic shift in how credit unions and community banks are driving growth. With rising interest rates, tightening margins, and competition from fintechs, institutions are turning to vertical banking strategies to scale faster, reduce costs, and serve new market segments.
According to the report, the share of new checking account openings from fintechs, neobanks, and digital-first challengers jumped from 36% in 2020 to 44% in 2024. Community institutions, constrained by legacy systems and disproportionate compliance costs, are seeking alternative growth models. Vertical and niche strategies—targeting groups based on life stage, profession, or affinity—are delivering outsized returns.
“Community is no longer just a geographic construct, but an affinity construct,” said Ron Shevlin, Chief Research Officer at Cornerstone Advisors and lead author of the report. “Pursuing an affinity banking strategy means tailoring experiences and products for a distinct ‘community’ with shared and unique needs. It’s not just about marketing segmentation and messaging.”
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Cornerstone interviewed executives from four financial institutions successfully pursuing vertical banking strategies in partnership with Nymbus. Standout case studies include:
- Michigan State University Federal Credit Union ($8.2B+ AUM), which launched AlumniFi, Collegiate, and Pillur to expand beyond their campus and serve young grads and small business owners.
- PeoplesBank ($4.3B+ AUM), which launched ZYNLO Bank for young consumers and Union Workers Financial Services for union workers
- Vantage West Credit Union ($3.1B+ AUM), which offers HUSTL Financial for gig workers, solopreneurs, and freelancers.
- Citizens Bank of Edmond ($413M+ AUM), which created ROGER Bank to support military members overlooked by larger institutions.
By launching vertical brands with a modern, sidecar core alternative, Cornerstone found institutions are also reducing costs, accelerating speed to market, and avoiding operational strain on their main business. These digital spin-offs act as innovation labs, driving faster product testing, stronger engagement, and increased margins.
“This report validates what we’ve been building at Nymbus: giving institutions the ability to test new ideas, refine customer and member experiences, and move with a speed legacy systems simply can’t match,” said Jeffery Kendall, CEO and Chairman at Nymbus. “Vertical banking isn’t a trend. It’s a proven growth model.”
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