Payment protection: What financial institutions told us

Early this year, Securian Financial interviewed credit union and bank leaders to understand how lending, financial wellness and payment protection are evolving. We wanted to know what’s working, what’s not and where leaders see the next opportunities.

Their perspectives painted a clear picture that calls for reframing how lenders approach payment protection in a world of shifting consumer expectations, technological change and rising financial pressure. From those conversations, five themes emerged about what’s shaping payment protection and opportunities for the future.

1. Start inside: Culture and employee advocacy

Leaders overwhelmingly cited internal culture, not product design, as the biggest barrier to payment protection growth. Many shared that payment protection underperforms not because borrowers don’t need it, but because frontline staff:

• Lack confidence in explaining its value
• Don’t feel equipped with compelling stories
• Lack training on how to position a borrower-first conversation

One leader said, “Staff have to be on board first … I don’t trust that every service person brings it up or emphasizes it.”

Traditional training builds knowledge but doesn’t build conviction. Leaders who saw stronger protection performance reported using:

• Targeted education centered on real-life scenarios
• Simple storytelling tools to help staff translate complexity into everyday language
• Modest incentives tied to advocacy and borrower outcomes, not product quotas

Opportunity: Culture is key, and conviction is driven from the top.

2. Emotional trust is the driver

Leaders also told us that internal advocacy doesn’t work without emotional connection. Even confident staff struggle when conversations don’t convey meaning. Borrowers buy protection when the story resonates.

Borrowers are more likely to respond to:

• Stories of families kept afloat during income disruptions
• Examples of borrowers avoiding delinquency during a medical event
• Small, lived experiences that make protection feel real

Financial decisions, especially related to risk, are emotional long before they are rational. Leaders emphasized the need to balance the conversation between connection and providing enough compliance-minded education so that the consumer feels knowledgeable and confident in their decision-making.

Opportunity: Elevate human storytelling by using testimonials or real-life examples. Encourage teams to ask the “right” questions and follow up with real, anonymized experiences.

3. A generational reset is already underway

Leaders noted a growing divide in borrower attitudes toward protection:

• Older consumers often carry skepticism shaped by past experiences or misunderstandings
• Younger consumers view protection products as normal and baked into digital experiences, travel apps, online shopping, and employer benefits

For Gen Z and millennials, protection isn’t an add-on; it’s an expectation.

This generational shift presents both a challenge and an opportunity. Lenders who continue to position protection as a legacy insurance product risk missing younger borrowers entirely. But those who modernize their narrative can meet emerging expectations head on.

Opportunity: The average age of a credit union member is 53.¹ This is a great opportunity to capture a larger share of the younger generations, something that credit unions and banks are intensely focused on.

4. Human value in an AI world

Leaders consistently emphasized that as automation expands, the most human moments are becoming the most valuable. AI can support operational efficiency, but it cannot replace the reassurance borrowers look for during:

• Life changes
• Income disruptions
• Claims experiences
• High-stress financial moments

Protection is inherently emotional. And according to the leaders we interviewed, that emotional dimension is becoming a major differentiator as digital ecosystems grow more automated.

Opportunity: Position protection as the human center of an increasingly digital world. Use automation to identify needs, then equip people to deliver empathy, guidance and confidence.

5. Untapped growth potential remains significant

Despite clear borrower need, leaders acknowledged that payment protection is still underleveraged, especially at larger institutions, with most not fully capitalizing on:

• Revenue potential
• Loan portfolio stability
• Financial resilience
• Opportunity to address real, unmet needs

Payment protection isn’t just another line item; it’s a strategic lever that strengthens balance sheets and helps borrowers withstand life’s uncertainties.

Leaders stressed that the institutions seeing the most success are those that:

• Elevate protection inside annual planning cycles
• Strengthen partnerships across channels
• Treat protection as a well‑being tool, not a product category
• Prioritize consistent positioning and staff engagement

Opportunity: Financial institutions can unlock meaningful growth by aligning protection more closely with outreach, financial wellness efforts, and long-term strategic priorities.

A new path forward for financial institutions

Securian Financial’s study highlights a fundamental truth: Protection is not just a product; it’s a capability. A mindset. A borrower promise.

Financial institutions that invest in internal confidence, generational relevance, emotional storytelling, human-centered experiences and strategic prioritization may not only strengthen their portfolios, they may also strengthen their borrowers’ financial lives. And in a year defined by uncertainty, that may be one of the most meaningful differentiators of all.