The news: USAA’s annual report claims a 96% member retention rate and 77% of members owning more than one product. USAA sells both banking and insurance products, signaling deeper member relationships driven by low costs and reinforced by its affinity model.

Trendspotting: According to our “US Banking Consumer Trust 2026” report, USAA and Navy Federal Credit Union—both of which have military connections—lead in customer advocacy. They trounced other large US financial institutions (FIs), with over 80% of consumers saying they’d recommend USAA or Navy Federal to friends. That’s 13 percentage points higher than the bank in third place. 

For example, when the federal government shut down for over two weeks in October 2025, USAA and Navy Fed responded quickly: 

• USAA announced ahead of the shutdown that it would extend no-interest loans to affected members. 
• Navy Fed announced a “Paycheck Assistance Program.”

USAA claims lower-than-average credit card rates and offers deposit accounts with no monthly fees or minimum balance—driving customer acquisition and retention even without the affinity factor. It also invests heavily in its digital experience, favoring reaching customers through digital channels. But it has not lost sight of the value of a physical presence, with plans to grow its footprint on military bases.

Implications for banks: Life events trigger financial journeys, according  to our June 2025 report Future-Proofing Banking Through Customer-Centric Journeys. And FIs need to reach customers at—or before—their moment of need. USAA figured this out a long time ago, framing products around “moments of disruption” like military-ordered relocations or catastrophic events. But most banks wait for customers to initiate the journey: Only 22% of consumers say their bank anticipates their needs. FIs that connect products to specific customer journeys link loyalty to sales in a way that nothing else can.

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