Legacy, Loyalty, and Leverage: Reinventing the Consumer Experience

I’m excited to share a curated story that hopefully will help you think differently about our engagement with our customers/members in the community bank and credit union space.

I know that fintech trends, artificial intelligence, and the future of the consumer experience are top of mind for everyone reading this article. And we’re going to get there. But before we talk about the future, I want to take you back for a moment. Back to the early 2000s.

Picture this: it’s Friday night. You and your family pile into the car and drive down to Blockbuster. You walk through the aisles, row after row of VHS tapes, later DVDs. You pick up the boxes, flip them over, debate with your kids (or your parents) about which movie to rent. Maybe you grab some popcorn or candy on the way to the counter. Then you head home, pop the tape into the VCR, or the disc into the DVD player, and that’s your evening.

How many of you remember that ritual?

For a lot of us, Blockbuster wasn’t just a store. It was an experience. A ritual. A part of our culture.

Now, fast forward. Where’s Blockbuster today?

There’s only one left. In Bend, Oregon. And that one is basically a tourist attraction.

Meanwhile, Netflix, once the scrappy underdog mailing DVDs in red envelopes, has become a global streaming powerhouse. 

Over 260 million subscribers worldwide. 

They’ve gone from renting movies to producing award-winning shows and films that people binge-watch for hours at a time.

So what happened?

How does a company that had everything. Trust, members, scale, brand recognition, vanish almost overnight? And how does a company that started with nothing. No stores, no legacy, no inherited loyalty, become one of the most dominant forces in entertainment?

That’s the story I want to use today to frame our conversation about community banks and credit unions, and how you can stay relevant in a world that’s changing faster than ever.

Because the difference between Blockbuster and Netflix didn’t come down to luck. It didn’t even come down to money.

It came down to three things: Legacy, Loyalty, and Leverage.

Part 1: Legacy – As a Launchpad 

Blockbuster. Think back to those Friday nights again. It wasn’t just a transaction. It was an experience. A ritual.

At its peak, Blockbuster had over 9,000 stores, tens of millions of customers, and a brand recognized around the world. They weren’t just renting movies. They were part of our culture.

And that’s what we call legacy.

Now, in the community financial institution world, you know legacy better than almost anyone. Some of your customers/members have been with you for decades. Whole families, grandparents, parents, kids, trust you because you’ve proven yourself over time. 

Your brand isn’t just a logo; it’s woven into the fabric of your community.

And here’s the good news: fintechs can’t buy that. No app, no matter how shiny, can replicate trust that was built over generations.

But here’s the caution: legacy alone isn’t enough.

Because here’s what happened to Blockbuster. They looked at their stores, their consumers, their dominance, and said: we’re untouchable. Legacy became their safety net. They thought tradition guaranteed the future.

Meanwhile, Netflix comes along. They start small, mailing DVDs in little red envelopes. No stores. No heritage. No brand. 

And at first, Blockbuster laughed them off.

In fact, in the year 2000, Netflix offered to sell to Blockbuster for $50 million. And Blockbuster turned them down. The CEO of Blockbuster literally laughed at the idea.

Fast forward. Netflix is worth over $200 billion. Blockbuster has one store left, in Bend, Oregon. 

So what happened?

Blockbuster had the trust. They had the customers. But they didn’t evolve their legacy. They clung to their stores, their late fees, their rituals. By the time they tried streaming, Netflix had already defined what “modern” looked like.

Now let’s bring this back to Community Banks and Credit Unions.

You are sitting on a legacy that fintechs would kill for. 

You have trust. You have loyalty. You have deep community roots. But the danger is treating that legacy like Blockbuster did, like it guarantees the future. It doesn’t.

Legacy isn’t a finish line. It’s a launchpad.

So how do you evolve it?

• Your legacy needs to show up in your mobile app. Because that’s the new branch lobby.
  
• Your legacy needs to be embedded in your data strategy. Because consumers expect you to anticipate needs, not just react.
  
• And your legacy has to come alive in your partnerships. Because no community FI can do it all alone.

Because here’s the truth: Digital banking isn’t just about offering online bill pay or balance checks anymore. That’s table stakes.

Digital banking is about being relevant in the palm of your consumer’s hand. It’s about taking the trust you’ve already earned and scaling it into an experience that feels personal, proactive, and modern.

So yes, your legacy is the reason consumers trust you. But evolving that legacy? That’s the reason they’ll stay.

Part 2: Loyalty – Not a Given, Earned Every Day 

Now let’s shift to the second theme: loyalty. Let’s go back to Blockbuster for a moment.

They thought they had loyalty locked in. And in a way, they did. Families went there week after week. It was part of the rhythm of life. Pick up a movie, grab some snacks, spend Friday night on the couch.

That felt like loyalty.

But here’s the catch: that loyalty was fragile. It was built on habit, not on experience. And the moment something came along that was more convenient, more personalized, and frankly more consumer-centric (ahem no late fees), Netflix, people switched almost overnight.

So what was the difference?

Netflix built loyalty in a completely new way.

They didn’t just give you movies. They gave you the right movie. They remembered what you liked. They suggested the next thing before you even knew you wanted it. And slowly, they built a relationship with you.

That’s where loyalty lives today.

Now, let’s bring that parallel into our world: Community Banks and Credit Unions.

Many of you have consumers who have been with you for decades. Whole families who trust you because you’ve always been there for them. But here’s the truth: loyalty is no longer measured in years. It’s measured in experiences.

And those experiences don’t begin at the teller window anymore. They don’t even begin at the loan desk. They almost always begin in a digital way.

Think about the last time you had to interact with your own bank or credit union. Did you drive down to the branch? Or did you pull out your phone?

For most consumers, their first, and sometimes their only, interaction is through the website or app.

So the question is:

• How fast does your app load?
  
• How intuitive is the experience?
  
• How personalized does it feel?
  
• And maybe most importantly. How proactive are you at anticipating needs before the consumer even realizes them?

That’s the battleground of loyalty.

Let’s get specific.

A consumer who can track their spending in real time through your app: that’s loyalty. They’re leaning on you for everyday financial wellness, not just for loans or deposits.

A consumer who can buy stocks, crypto, precious metals and mutual funds in your app: that’s loyalty. You’re helping them grow their wealth, without sending them to a fintech competitor.

A consumer who receives a fraud alert before they even notice a suspicious charge: that’s loyalty. You didn’t just protect their money, you protected their peace of mind.

A consumer who gets a personalized loan offer right when they’re shopping for a car: that’s loyalty. You anticipated the moment, and you were there before anyone else.

This is how loyalty is earned today. By showing up in ways that feel personal, relevant, and timely.

Now let me ask you this: How many of you reading this believe your consumers are loyal because of who you are? 

The truth is they’re loyal as long as the experience keeps up with their expectations. And those expectations are being set not by your peers, but by the apps they use every single day: Netflix, Amazon, Uber, CashApp. That’s the standard.

And here’s the good news. You already have something those companies don’t. Trust.

You don’t have to fight for attention like a fintech startup. Your consumers already believe in you. The question is: Are you meeting their expectations every time they tap on your app, walk into your branch, or call your support line?

Because when you do, something powerful happens.

You don’t just retain your customers/members. You don’t just keep them from leaving.

You create advocates. My mentor used to call this creating raving fans.

And in a world of infinite choice, where consumers can download a new banking app in 30 seconds, advocacy is the most powerful form of loyalty you can have.

Think about Netflix again. How many times have you heard someone say, “You’ve got to watch this show on Netflix”? 

That’s not marketing. 

That’s not advertising. 

That’s advocacy. 

That’s loyalty turned into evangelism.

Imagine if your account holders did the same for you.

Imagine if they said to their kids, their coworkers, their friends: “You’ve got to join my community bank, my credit union. They just get me. They look out for me. Their app is amazing. They make my financial life easier.”

That’s where loyalty becomes your engine for growth.

And the way you get there is by showing up. Consistently, intentionally, and with empathy across digital, mobile, and in-branch. 

You know the omnichannel experience. 

Every single day.

Because loyalty is no longer something you can assume. It’s something you have to earn. Over and over again.

Part 3: Leverage – Turning Strength Into Strategy

Now let’s get to the third piece: leverage.

If “legacy” is your foundation, and “loyalty” is the currency you earn every day, then leverage is what transforms both of those things into forward motion.

And this is where Blockbuster truly fell short.

Think about it: they had everything you would think they needed to win. 

They had trust. They had customers. They had incredible scale. But they didn’t leverage it. They didn’t leverage their data and they had plenty. 

They could have seen that consumer behavior was changing, that people wanted convenience, that late fees weren’t sustainable. But they were stuck in rear-view mirror mode.

They didn’t leverage their partnerships. They could have bought Netflix when they had the chance, or partnered with other innovators, but they didn’t.

And they didn’t leverage their culture. They thought of themselves as a retail chain, not a technology company. 

And when your culture doesn’t let you pivot, it doesn’t matter how much trust you have. You’ll lose.

Netflix, on the other hand, leveraged everything.

They started small, mailing DVDs. But from the beginning, they were studying the data. They weren’t just renting movies. They were learning what people liked, how often they watched, what genres worked best.

They leveraged those insights to make streaming the default.

Then they went further. 

They leveraged partnerships with content producers to expand their catalog. 

And eventually, they said: Why not leverage the platform itself to create our own shows?

That’s how you go from red envelopes to House of Cards to winning Academy Awards. That’s the power of leverage. Turning what you already have into momentum for the future.

Now let’s turn the mirror back to Community Banks and Credit Unions.

You have trust. You have loyalty. But the question is: Are you leveraging them?

Because without leverage, trust and loyalty just sit there. They feel good, but they don’t create forward motion.

So what does leverage look like in our world?

First: Leverage your data.

• Don’t just use it to report history. Use it to predict needs.
  
• Imagine sending a proactive car loan offer the moment a consumer’s search history shows they’re shopping.
  
• Imagine nudging someone toward investing $5 at a time to build wealth. When the data tells you they have a bit of extra cash.
  
• Imagine helping a consumer avoid overdraft fees before they even hit zero.

That’s predictive leverage.

Second: Leverage your partnerships.

• No community financial institution can build everything in-house. In fact with the speed that technology changes it's not advisable. But with embedded fintechs as partners, you can offer modern features: investing, robo advice, credit score, loan recommendations, right inside your platform. The best part is these fintech partners have to stay up to date to remain relevant and you benefit from their development.
  
• That’s how you keep consumers inside your ecosystem, instead of losing them to shiny standalone apps.
  
• And the beauty of partnerships is, they let you move faster. You don’t have to reinvent the wheel, you just have to connect it.

Third: Leverage your culture.

• This may be your biggest advantage. Big banks can build apps. Startups can raise money. But what they don’t have is your mission-first mindset.
  
• You exist to serve consumers and your community. And that’s leverage, because it gives you permission to innovate without losing your soul.
  
• You can modernize while staying human. You can adopt technology while keeping empathy at the center.

Now let me pause here and ask: How many of you feel like your community bank or credit union already uses its data to predict consumer needs? 

How many of you feel like you’re truly leveraging partnerships to stay ahead? 

If you’re hesitant to say yes, you’re not alone. Most Community Banks and Credit Unions are still learning how to turn trust and loyalty into leverage. 

And that’s okay, because you’re here, reading this article. 

You’re thinking about it. 

And with the right digital banking partners as the foundation you are moving in the right direction.

But the truth is without leverage, legacy and loyalty are vulnerable.

That’s why Blockbuster failed. They assumed their size and loyalty base would protect them. And they didn’t use those strengths to evolve.

Netflix? They had no legacy. No loyalty. But they leveraged what little they had: data, partnerships, culture, and turned it into a billion-dollar advantage.

So the lesson for Community Banks and Credit Unions is this: Leverage isn’t about going big for optics. It’s about going smart.

It’s about saying: We know who we are. We know what our consumers need. And we’re going to meet them there with speed, care, and confidence.

Because when you combine legacy, loyalty, and leverage. You’re not playing defense anymore. You’re building the next generation of a consumer financial movement.

And just like Netflix redefined entertainment, Community Banks and Credit Unions can redefine financial services. If you’re willing to leverage what you already have.

Final Thoughts

So let’s bring this full circle.  Blockbuster, Netflix what does their story tell us? How Community Banks and Credit Unions can use this story as a learning tool?

Blockbuster had legacy. They had loyalty. But they didn’t leverage them. They treated their past like a guarantee, and their customers like they’d never leave. And when the future came knocking, they missed it.

Netflix, on the other hand, started with nothing. No legacy. No inherited loyalty. 

Just a scrappy little idea about mailing DVDs in red envelopes. But they learned to leverage what they had: data, partnerships, culture, and they turned those small advantages into something that redefined an entire industry.

And that’s the choice in front of Community Banks and Credit Unions today. Unlike Netflix at the beginning, you already have what most disruptors would kill for.

You have a foundation of legacy. The trust you’ve earned across decades, the relationships that pass down through families, the credibility of being woven into your communities.

You have a base of loyalty. Consumers who believe in you, who have chosen you over megabanks, who want you to succeed because when you succeed, the community succeeds.

And you have the chance to turn both of those things into leverage. The ability to anticipate needs, to embrace partnerships, to modernize without losing your soul.

Think about what happens when you combine those three.

• Legacy gives you trust.
  
• Loyalty gives you staying power.
  
• Leverage gives you momentum.

Together, they don’t just help you keep up with disruption. They allow you to define the future of financial services.

Now, let me ask you this: What if, 10 years from now, the “Netflix story” that people tell isn’t about streaming? What if it’s about Community Banks and Credit Unions?

What if the story is: Community Banks and Credit Unions didn’t just survive the digital era. They led it.

What if people looked back and said: “While banks were trying to act like fintechs, Community Banks and Credit Unions became the movement consumers trusted most”?

That’s not a pipe dream. That’s a choice. 

And it’s a choice every community financial institution leader reading this gets to make.

Legacy. Loyalty. Leverage.

It’s not just a framework. It’s a roadmap.

Because if you lean into those three, you’re not playing defense anymore. You’re not reacting to fintechs or megabanks. You’re writing the next chapter of this industry.

And maybe, just maybe, the future “Netflix story” won’t be about movies at all. It will be about you.