The Future of Credit Unions and Community Banks: How Debit Installments Are reshaping the banking relationship
Customers already expect to pay over time, and third-party Buy Now, Pay Later apps have built entire businesses by giving them that flexibility in a few taps at checkout, without going through their own bank at all. But every time that flexibility comes from outside the bank, the institution loses more than a single sale. It loses the fee income attached to that spending, visibility into the transaction itself, and a chance to strengthen the primary banking relationship.
The trust advantage credit unions and community banks already have
Credit unions and community banks already carry the trust signals BNPL providers are chasing. Installment payments built on that existing relationship don’t need to win anyone over, which means they’re more likely to be used, not just tried once and abandoned.
What’s kept that from happening isn’t the relationship, it’s the infrastructure. With BNPL already pulling installment spend outside the bank, credit unions and community banks have a real opportunity to be part of that space themselves. Debit installments give them a way in, built on the accounts members already hold rather than a new credit product stacked on top.
What are debit installments?
A debit installment lets an eligible debit purchase be split into smaller payments over time, instead of coming out of the account all at once. The shopper still uses the same debit card they already have. What changes is how that payment gets paid off afterward. That’s the key difference from Buy Now, Pay Later, which usually runs through a separate provider and its own application, entirely outside the bank or credit union. These installment payments work within an account a member already holds.
How debit installments sharpen the member and customer experience
At checkout, debit installments remove the hesitation of a large single payment without sending the member to a third-party app. Afterward, eligible transactions can turn into personalized installment offers.
Splitit’s white-label platform now delivers this through Jack Henry’s SilverLake and Banno platforms, giving eligible credit unions and community banks flexible payment solutions without building new technology.
“Banks and credit unions shouldn’t have to watch their most loyal customers leave the banking relationship every time they want more payment flexibility,” said Collin Flotta, Splitit’s Chief Product Officer.
Institutions already running on Jack Henry’s SilverLake or Banno platforms can offer installments now. See how Splitit partners with banks and financial institutions, or read the full announcement for more detail.
If you want to talk through what debit installments could look like for your institution, get in touch with the Splitit team.