Banking & P2P At a Glance:
- As banks seek P2P options, fintech companies eye bank charters
- Small and midsize financial institutions look to acquire and retain customers with “big bank” payment features
- While deploying P2P is essential, choosing the right implementation strategy is key
- Branches and human engagement will continue to drive trust in traditional financial institutions
With steep customer expectations around speed, convenience, and seamless digital tools, banks and credit unions are increasingly turning to peer-to-peer (P2P) capabilities as a powerful way to deepen engagement and protect primary banking relationships. Payments capabilities are no longer transactional add-ons. Instead, P2P payments are daily touchpoints that have the ability to reinforce loyalty and keep customers active within their own bank’s ecosystem instead of going outside their bank to get those services elsewhere. As legacy banks eye new or expanded digital payment platforms, some established fintechs are looking at expanded roles for themselves.
No longer content in partnership alone, recognized fintech brands are exploring bank charters as a way to deepen their access to customers within the banking sector. Max Levchin, CEO of Affirm, says that “a banking subsidiary would strengthen and diversify Affirm’s platform, helping us bring honest financial products to more people.” His company has applied for a bank charter in Nevada. PayPal and Chime are also exploring their own bank charters to expand market share. “As the payments and fintech industries mushroom, they’re eager to expand services in ways that are less constrained by traditional banking frameworks,” according to Lynne Marek, lead editor of Payments Dive.
While some fintech heavyweights are exploring what it would take to go it alone, banks are expanding their own P2P capabilities. Capital One recently acquired tech company Brex, giving the bank its own platform that integrates credit cards, payments, and banking into one holistic model. Richard Fairbank, CEO of Capital One, says the acquisition accelerates the company’s aim to “build a payments company at the frontier of the technology revolution.” At the same time, hundreds of financial institutions are entering into partnerships with Zelle, as small and midsize financial institutions look to acquire and retain customers with “big bank” payment features.
Indeed, banks are increasingly recognizing that P2P capabilities function as a retention and engagement lever. “Banks can transform payments from a commodity into a strategic differentiator that reinforces the trust at the heart of the relationship banking,” says Bob Rohr, managing director of Bank Director. Customers want faster payment options – and integrating those features into a bank’s core offerings is crucial. Fintechs offer innovation, including clean user experiences (UX) that younger consumers, in particular, both value and expect. They also provide new revenue streams as well as growth opportunities. The question today for banks and credit unions shouldn’t be whether to expand their payment infrastructures, but how.
Choosing the Right P2P Strategy
As banking and fintech converge, mid-sized and community institutions face growing pressure to expand P2P capabilities. But what’s the right strategy? The 2026 Retail Banking Trends and Priorities report finds that 67% of financial institutions are partnering with solution providers. Partnerships offer lower upfront costs, access to talent and data, and faster time to market – though integration with legacy systems and regulatory risk remain. Acquisitions bring talent, technology, and intellectual property in-house, but are costly and can create cultural integration challenges. The third path is building capabilities internally, which takes more time and resources but enables deeper integration with core systems.
Digital Matters, Personal Connections Are King
Whatever strategy a financial institution opts for, banking leaders must not lose sight of their competitive edge over fintech – the human connection. Digital banking handles routine functions, but the in-person experience remains a critical channel for consultation, trust-building, and deeper relationships. McKinsey suggests the future will be “digital-led with a human touch,” with branch staff providing personalized advisory services for navigating more complex financial decisions. Branch-originated relationships also tend to be stickier and more lucrative than those begun digitally. Curinos finds “while the quantity of branched-based checking may be on the wane, the quality is holding.”
While digital channels and payment platforms are important for convenience and acquisition, face-to-face interactions continue to drive the strongest banking relationships. Data from JD Power’s 2025 Retail Banking Advice Satisfaction Study finds that customers are increasingly seeking financial advice and guidance from their banks. “Bank customers –particularly younger ones – are telling their banks they need help right now. This presents a once-in-a-lifetime opportunity for retail banks to build valuable, enduring relationships,” says Jennifer White, JD Power’s senior director for banking and payments intelligence. In a challenging economy in particular, customers want guidance to manage money wisely.
Reshaping the Banking Ecosystem
In an ecosystem where consumers expect P2P convenience, it might be surprising to learn these same consumers also crave connections. This suggests the future belongs to relationship-driven local banks with modern tools. The blurring lines between fintech and banking offers financial institutions opportunities to integrate technology while maintaining the human touch. CSI’s 2066 Banking Priorities finds that more leaders recognize the need to “balance branch and digital experiences, designing seamless digital for routine needs and high-value, personal interactions at the branch for moments where expertise and trust matter most.” This hybrid model balances convenience with trust, ensuring customers transition smoothly between digital self-service and in-person engagement.
Adrenaline is an end-to-end brand experience company serving the financial industry. We move brands and businesses ahead by delivering on every aspect of their experience across digital and physical channels, from strategy through implementation. Our multi-disciplinary team works with leadership to advise on purpose, position, culture, and retail growth strategies. We create brands people love and engage audiences from employees to customers with story-led design and insights-driven marketing; and we design and build transformative brand experiences across branch networks, leading the construction and implementation of physical spaces that drive business advantage and make the brand experience real.
