What a $6 latte reveals about credit union dormancy

Every fall, Starbucks reactivates millions of customers with the pumpkin spice latte, aka PSL. The flavor itself matters, but what really matters is the ritual. The company has built a system of timely nudges, personalized offers, and seasonal urgency that keeps customers engaged, year after year.

Credit unions face the opposite problem. They open new accounts, often at significant cost, only to see members go dormant within weeks. Debit cards remain unactivated. Direct deposits never arrive. Digital banking apps sit unused. Dormancy is not just a missed opportunity; it is one of the most expensive inefficiencies in modern credit union growth.

Credit unions face a subtle yet costly trend: many new accounts never turn into meaningful relationships. While overall membership grew by nearly 2.9 million in the year ending Q1 2025, almost 64% of those new accounts report no activity beyond opening—meaning they never see a deposit, direct deposit, or consistent use of services. (NCUA, 2025) At the same time, digital enrollment remains fragile: across 2024 and 2025, institutions report abandonment rates of up to 50% during digital account opening, particularly when verification steps prove lengthy or cumbersome. (Enrich, 2024) In effect, credit unions are investing substantial resources to bring members in—only to have a third quietly vanish before the relationship begins.

Starbucks doesn’t assume loyalty. It engineers it. The pumpkin spice latte is the headline act, but the real engine is the Starbucks Rewards app:

The result: customers who might have drifted away are pulled back in, and occasional visitors are converted into daily regulars. Dormancy is actively prevented.

In too many institutions, the new-member journey flatlines the moment the account is opened. A member joins, whether through indirect lending or a promotional checking offer, and administrators send a friendly welcome—then go silent. Members are left to figure out how to fund their accounts, initiate direct deposit, or activate debit cards on their own. As a result, many never make that leap.

This isn’t because members lack intent. It’s because they lack guidance. Behavioral science confirms that small, thoughtful nudges such as progress indicators, step-by-step checklists, and timely contextual reminders can significantly improve follow-through and habit formation.

Yet, too many credit unions still treat onboarding as a one-time box to check rather than a crafted experience to shape.

“Every digital interaction is a chance to make banking more personal and intuitive. It’s about smarter personalization that drives adoption, strengthens relationships, and delivers measurable growth.“ — Laszlo Tallai, SVP of Growth & Innovation at Communication FCU

That distinction is critical. Without designing for relationship behavior, not just product delivery, credit unions risk leaving members idle. Starbucks proves that intentional design can transform single actions into loyal habits.

Credit unions don’t need to copy Starbucks’ menu. They need to copy its discipline. Engagement must be designed, not assumed. Here’s how:

The first 90 days should be structured as a series of visible steps: fund the account, set up direct deposit, activate the card, and enroll in e-statements. Show members' progress, just as Starbucks shows stars.

If payroll hasn’t landed by day 30, prompt members with a direct deposit challenge. If the debit card hasn’t been used, send a reminder when they log into the app. Timing matters more than volume.

Just as pumpkin spice is a limited-time offer, credit unions can frame early actions as time-sensitive. For example: “Set up direct deposit this month and unlock early-pay benefits.”

The fundamental metric of growth is not the number of accounts opened, but the number of accounts activated. Track funded balances, payroll penetration, and card usage at 30/60/90 days.

Cross-industry research confirms that nudges and behavioral design work:

The evidence is clear: design wins. In every industry, intentional engagement prevents attrition. For credit unions, the choice is whether to engineer activation or accept dormancy as a cost of doing business.

Credit unions face rising acquisition costs, slowing loan growth, and intense competition for deposits. In this environment, dormancy is not a side issue. it is the issue.

If Starbucks can bring customers back for a $6 latte, credit unions can guide members to fund accounts, move their paycheck, and use their cards every day. But it will not happen by chance. It will happen only when onboarding is treated as the foundation of loyalty, not an afterthought.

The scariest thing about member growth isn’t fintech competition or megabank budgets. It’s dormant accounts sitting inside your own portfolio. Starbucks proves that loyalty is designed, not assumed. Credit unions face the same choice in 2026: build systems that activate members, or continue paying for accounts that never produce.

Ready to make sure your new members stay members (for life)? At Swaystack, we’ve taken these key lessons to heart and developed a fresh approach to 60-day new member and indirect member onboarding and activation. The time is now to drive increased account activity and boost your credit union’s revenue. Discover the difference gamified onboarding can make. Let’s talk!