Don’t Be the Next Blockbuster: What Banks and Credit Unions Can Learn from Dead Brands

Spoiler: Nostalgia won’t save you.

Once upon a time, Blockbuster was king. So was Sears, Borders, and, believe it or not, MySpace. They had name recognition, customer loyalty, huge footprints, and seemingly unshakeable business models.

And now?

They're case studies in what happens when you ignore digital trends, bet against technology, or assume customers will stick around just because they “know your name.”

Sound familiar?

So did Blockbuster’s. Right up until they didn’t.

Blockbuster had everything: 9,000 stores, a beloved brand, and a head start on home entertainment. Netflix offered to partner with them for $50 million. Blockbuster laughed. Two years later, Netflix launched streaming. Five years later, Blockbuster was gone.

Lesson? Brand loyalty doesn’t survive poor digital decisions.

If your bank or credit union is still relying on legacy systems, outdated channels, or a “they’ll come into the branch eventually” mindset, you're standing in Blockbuster’s shoes—watching the future, but refusing to walk toward it.

Here are a few more cautionary tales from the Business Graveyard:

• Sears: Once the Amazon of its day, but failed to digitize. (Yes, they invented the mail-order catalog… and still lost the e-commerce race.)
  
• Borders: Outsourced its online sales to Amazon. That’s like outsourcing your member experience to a competitor.
  
• MySpace: Had all the users and none of the product direction. Facebook rolled up with a cleaner UX and ate their lunch.
  

They all had assets. They all had market share. They all thought digital would wait for them to catch up.  It didn’t.

A lot.

You might be the trusted hometown FI with decades of service. You might have strong capital, great people, and “customer-first” or “member-first” plastered across every marketing asset.

But if you're not actively:

• Embedding modern fintech tools into your experience
  
• Rethinking how people want to engage with financial services
  
• Updating your digital strategy more than once a year
  
• Challenging your core, vendors, and internal assumptions
  

… then you're walking the same path as Borders, just with teller lines instead of bookshelves.

Now let’s flip the script.

Netflix didn’t just kill Blockbuster by mailing DVDs. It reinvented itself multiple times.  From mail service, to streaming platform, to content creator, to global brand.

It built digital DNA into its culture. And when consumers changed, it changed too.

If your institution wants to survive (let alone win), it’s not about having a nice-looking mobile app or “offering Zelle.” It’s about becoming a digitally fluent, customer-led, constantly evolving organization.

“We’ve been around for 100 years” is not a moat.

You don’t get credit for history if you’re not using it to build the future.

Because while you're reminiscing about branch openings and passbook accounts, your members are opening accounts with SoFi, investing through Robinhood, and sending money with Cash App.  All without leaving the couch.

If that doesn’t wake you up, nothing will.

• Dead brands ignored digital shifts. Don’t be them.
  
• Embed tech that matters. (Looking at you, self-directed investing, crypto custody, AI-enhanced CX.)
  
• Stay agile. Digital strategy isn’t once-and-done—it’s a weekly mindset.
  
• Think beyond features. Build ecosystems, not silos.
  

You don’t need to be flashy. You just need to be real about the future and invest like you’re going to be part of it.

Because if you don’t? Someone else will.