Financial institutions are facing mounting pressure from every angle. Consumers are more cost-conscious than ever, loyalty is increasingly fluid, and new competitors—from retailers to tech giants—are embedding payments seamlessly into daily life. In this crowded and fast-moving ecosystem, banks and card issuers are struggling with a painful reality: it’s never been harder to stay visible, valuable, and relevant.

In a recent article for The Financial Brand, Leigh Admirand, Executive Vice President at Reach3 Insights, explored how the fight for consumer attention is increasingly playing out in the digital wallet. Her piece, “Miss Top-of-Wallet Today, Risk Irrelevance Tomorrow,” highlights what’s at stake for financial services leaders and why traditional approaches to loyalty and research are no longer enough.

Why top-of-wallet matters for financial services firms

When consumers pay with their phones, only one card gets the transaction. That single decision has an outsized impact on loyalty and long-term revenue.

“When a customer double-taps their phone at checkout, only one card gets the transaction," Leigh explains. "T hat top-of-wallet spot increasingly determines who wins and who fades into the background."

With 5.2 billion people worldwide now using digital wallets, the competition for that default position has become the new loyalty battleground.

Winning the digital wallet is especially critical because there are more players in this space than ever. Leigh explains:

"It’s not just traditional rivals jostling for position. Telecom providers are offering credit cards tied to service discounts. Tech companies are launching savings accounts. Retailers are embedding buy-now-pay-later options into checkout flows. In this environment, wallet share is about the entire ecosystem, not just finance."

Loyalty in the age of micro-moments

Leigh explains that in financial services, the building blocks of loyalty—trust, ease, tangible benefits—haven’t disappeared. What’s changed is how they’re delivered. Today, micro-moments define loyalty:

• Is the app intuitive and reliable?

• Is reward redemption seamless?

• Does the experience anticipate needs before the user asks?

As Leigh notes, “If your card isn’t the default, it’s likely invisible.” For digital-native consumers, especially Gen Z, the easiest path is the one that wins.

The blind spot: Limited visibility

Many issuers don’t know whether their cards are even in customers’ digital wallets, let alone how frequently they’re used. Fragmented data, siloed systems, and reliance on proxy metrics like app logins leave brands without a clear picture of real-world behavior.

“Without better integration and real-time feedback loops, traditional brands risk flying blind,” Leigh warns.

Meanwhile, newer players with unified tech stacks enjoy end-to-end visibility and can act on insights much faster.

Consumer behavior: Cost-conscious and selective

The macroeconomic backdrop is shaping wallet choices. According to Reach3’s Trade Winds research, “90% of Americans reported changing their grocery shopping habits in recent months to save money.”

That same mindset governs financial decisions: comparing reward structures, avoiding hidden fees, and prioritizing tools that create a sense of control. Just like in the grocery aisle, if a financial product doesn’t clearly demonstrate value, it’s bypassed.

Understanding financial services customers using conversational research 

Leigh argues that winning brands are those closest to their customers—not just in marketing, but in learning. That's why using conversational research methods — which capture more authentic insights by mimicking how people communicate today — are increasingly critical.

By capturing feedback in real time and in the channels consumers already use (like SMS), financial institutions can unlock contextual insights that drive better decisions and faster adaptation.

Gen Z and the new loyalty loop

Reach3’s research shows Gen Z’s payment preferences are shaped by peer networks and social proof as much as by convenience. Venmo, PayPal, and Apple Pay lead adoption, while control, instant transfers, and trust in data handling are non-negotiable.

Unlike physical wallets, where a card might linger unused for years, digital wallets have shorter loyalty loops—a single poor experience or competitor promotion can bump a card out of rotation instantly.

Takeaways for financial leaders

1. Win the default spot. Top-of-wallet status is the new loyalty metric.

2. Break down silos. Build integrated, real-time visibility into how your products are actually used.

3. Listen in the moment. Adopt conversational research methods to capture consumer sentiment in real time.

4. Design for value clarity. Demonstrate everyday utility to cost-conscious consumers.

5. Adapt to Gen Z expectations. Social proof, security, and instant control are must-haves.

For more on the approach that Leigh mentioned here, check out our ebook, 9 Conversational Research Principles.