For some time, the retail financial services industry has been trying to answer what appears to be a simple question: What makes consumers consider an institution their primary financial institution (PFI)? Traditionally, PFIs were the institutions that handled accountholders checking accounts and direct deposits, those that built relationships, had conveniently located branches, and delivered overall satisfaction. While those factors still matter, emerging consumer payment behaviors suggest that the definition of primary is evolving.

Recent Raddon research suggests that the payment credentials consumers use for everyday digital transactions are becoming just as important as the traditional banking products that support them. In a world increasingly driven by AI, embedded finance, subscriptions, digital wallets, and automated payments, transaction share is emerging as a powerful predictor of long-term relationship value. 

Figure 1: Sources of the payment credentials consumers use for subscription services

Credentials consumers use for subscriptions/digital wallets

Source: Raddon Research Insights

The data show that a slight majority of consumers continue to rely on their PFI when supporting subscriptions and digital payment activities (Figure 1). However, meaningful portions of consumers route these transactions through alternative providers, including fintech platforms, major retailers, digital wallets, and secondary financial institutions.

At first glance, this may appear to be merely a payment-preference issue. It likely reflects something deeper. Every monthly subscription, digital payment, or AI-enabled commerce activity generates a financial touchpoint. The institution facilitating those transactions occupies a privileged position in the consumer’s financial life. It has visibility into spending behavior, maintains ongoing engagement, and becomes increasingly embedded in everyday financial decision making.

Historically, banks and credit unions viewed the checking account as the centerpiece of relationship management. Increasingly, it is the institution’s credentials themselves that may be the important battlefield.

Primary checking still matters

Despite the rise of fintech competitors and alternative payment ecosystems, the research reinforces a long-standing truth: Primary checking relationships remain important. Research cited in a previous Raddon Report blog (“Primary Checking Brings Primary Status,” August 27, 2026) suggests that consumers with a primary checking relationship with an institution are 18 times more likely to consider that institution their PFI than those without a primary checking account there. The same data suggest that when consumers consider a particular institution their PFI, they are 5.4 times more likely and 13.9 times more likely to bring all or most future loans and deposit business, respectively, to that institution.     

The latest Raddon PFI research suggests that when accountholders both perceive an institution as their PFI and use the PFI’s credentials with subscription services/wallets, the effect intensifies. The consumer is 3.3 times more likely than PFI non-credential users to use that institution for all or most future deposits and 3.1 times more likely for all or most future loans (Figure 2). PFI status already predisposes a consumer to bring future deposits and loans to the institution, but the credentialing habit intensifies it further. 

Figure 2: When credential placement accompanies the PFI position in the consumer’s mind, the loyalty effect intensifies

Credential placement increases PFI effect

Source: Raddon Research Insights

Deposit relationships are not becoming irrelevant. Instead, their importance is being amplified by their ability to act as transaction hubs for a consumer’s increasingly digital financial life. It does appear, however, that the role of primary checking is being diluted by the competition for transaction share with non-PFI institutions. In Figure 1, only 51% of consumers use their PFI for recurring payments; one might expect a higher percentage. Is the loss of transaction share to fintechs and others softening the PFI-checking nexus? It is likely affecting long-term retention: When an account funds Netflix, Uber, Amazon, mobile wallets, subscriptions, streaming services, and emerging AI-enabled purchases, switching institutions becomes increasingly difficult.

(For the stats nerds reading this, there is evidence in the data that losing transaction share is diluting the influence of PFI and primary checking.  As mentioned above, PFI status makes a consumer 18 times more likely to consider the institution their PFI today; in 2018/2019 the odds ratio was 37 times. The R² between primary checking status and PFI status was 48% in 2018/2019 and in the latest study, it is only 35% – there is no overlap in the confidence intervals between periods. So, consumers may consider their checking with you as “primary,” and you may even be their “PFI”, but if they are not transacting with your credentials, it may not matter. Or, at least, it may be on a trajectory of mattering less.)

For years, financial institutions focused on selling products and creating relationships. The latest research suggests that institutions must also focus on becoming transaction platforms. Consumers who consistently use institution-issued credentials for digital commerce appear more likely to deepen both deposit and lending relationships. Financial institutions should recognize these credentials as strategic relationship assets.

Implications for banks and credit unions

For community banks and credit unions, these findings carry important strategic implications.

1. Defend primary checking aggressively

The research confirms that primary checking remains foundational to PFI status today. Institutions should continue prioritizing direct deposit acquisition, account engagement, and checking account primacy initiatives. The checking relationship remains the gateway to broader financial engagement because of the associated transactions.

2. Make debit and credit credentials central to strategy

Many institutions treat payment credentials as secondary products. The data suggest they should be viewed as strategic relationship anchors. Increasing transaction share may be the avenue to increasing loan and deposit wallet share. Programs encouraging consumers to use institution-issued cards/credentials for subscriptions, recurring payments, digital wallets, and e-commerce platforms could generate long-term loyalty benefits beyond interchange revenue.

The research ultimately delivers a simple message: Transactions matter. Not merely because they generate fee income or create data. Transactions increase engagement and reveal where consumers perceive trust and convenience in their daily financial lives.