EXCLUSIVE: “Mission-Driven Banking” – Kristina Tanner, USAA in ‘The Fintech Magazine’

We go inside USAA’s digital transformation to deliver the ultimate service to military personnel and their families

In the world of banking, few institutions carry the weight of purpose quite like USAA (United Services Automobile Association). Founded in 1922 by a group of US Army officers who couldn’t find auto insurance, the San Antonio-based financial services company has grown into a $220billion powerhouse.

With more than 14 million members – exclusively military personnel, veterans, and their families – USAA isn’t just a financial services provider. It’s a lifeline for those who serve. And in an era of digital disruption, it’s betting big on technology to deliver not just convenience, but care – well aware of its responsibility towards those giving the ultimate service for their country. A USA-wide bank, it must be able to deliver on its commitment by also operating efficiently across international borders, given that many of its members routinely spend periods overseas, sometimes at short notice, leaving their families behind.

“Finances are personal. They can spark joy or anxiety,” says Kristina Tanner, USAA’s Digital Banking Lead.

She describes how, ironically perhaps, digital innovation is at the heart of how the bank delivers a human touch.

“Digital banking is even more intimate. You hold that phone six inches from your face, and there are very few things you get that close to in your life!” she says. “That’s why I believe if we get digital banking right, we can make finances easier for people. They can do the tactical stuff quickly, but we can also help them manage their money a little better, and improve their financial security.”

In fact, Tanner’s team is obsessed with making every digital interaction count. USAA members – whose close relationship with the bank is fostered also by their direct voting say in the business’s direction – log in more than 22 times a month, and each login is a chance to offer insight, ease anxiety, or improve their financial security.

“We’re member obsessed,” she says. “Every tap, every scroll, every moment is an opportunity to serve. USAA is known for two things, really: exceptional service and being digital first. Like most people working in the digital space, I love my digital metrics, but what I’m really driven by is that human element of digital banking.”

USAA’s approach to innovation is about getting the basics right, especially for members who might be deployed overseas at a moment’s notice.

“When we first introduced instant account verification, I couldn’t even remember my passwords,” Tanner laughs. “Now, biometrics make it seamless. That’s the kind of friction we’re always trying to eliminate.”

USAA doesn’t aim to be edgy. It aims to be safe, secure, and relentlessly efficient. “We ask: ‘will this delight?’, ‘will it protect?’, ‘will it help someone feel more financially secure?’,” Tanner says. “If the answer’s yes, we build it.

“We’ve been digital for a long time, and we made the transition to better serve our members. It wasn’t about technology for technology’s sake; it was introduced to serve our members better, especially given they’re all over the world.”

And it seems to be working. In 2024, USAA group, which includes banking and insurance services, posted record revenue of $48.6billion and near-record profit of $3.9billion – tripling its earnings from the previous year. Its net worth rose 10 per cent to $32.1billion, too, and total assets hit $220.6billion. Behind those numbers is a story of resilience. After its first-ever loss in 2022, USAA rebounded by doubling down on member service and operational efficiency. Its insurance business paid out $4.3billion in catastrophe-related claims, handling 439,000 cases with technology that cut settlement time in half.

“We’re member obsessed. Every tap, every scroll, every moment is an opportunity to serve. We literally listen to member feedback every day”

It focussed on prevention, too, with innovative offerings like the SafePilot driving telematics programme promoting safer driving, and Connected Home, which rewards members for using smart devices for detecting issues in the home like leaks, designed to help avoid costly repairs and save on insurance. Meanwhile, USAA Perks, which gives members access to discounts on everyday products and services, delivered $1.2billion in savings over five years.

“We really don’t want to get it wrong for folks who are risking their lives for us,” Tanner says. “That motivates me just that much more.”

USAA’s commitment goes far beyond financial services, however. In 2024, it donated $62million to non-profit causes, including $3million for hurricane recovery and $1million to fight food insecurity. Its Recycled Rides️ programme provided refurbished vehicles to veterans, and employees logged 279,000 volunteer hours. It also invested $25million in suicide prevention initiatives, aiming to save 6,500 lives among active service personnel, veterans and their loved ones, by 2032.

Since 2019, when the Office of the Comptroller of the Currency (OCC) put the bank under scrutiny for its AML/KYC and fraud controls, the bank ratcheted up use of financial crime prevention tools. Digital transformation – inspired by agenda-setters both in and outside financial services – is at the heart of its strategy to ensure regulators and members alike have full trust in USAA Bank.

“We’re learning from outside banking,” Tanner says. “People expect the same ease they get from retail or streaming apps. So we’re not just looking at what other banks do, we’re looking at what great digital experiences look like.”

More than 94 per cent of USAA members interact digitally. More than three-quarters of sales happen online. And younger members, Tanner notes, ‘don’t want to call us if they can avoid it’. For Tanner, the acquisition process is like a first date.

“If it’s clunky, they won’t come back,” she says. “But if it’s smooth, and we follow through with great service, maybe we’ll be married and be happy forever.”

That philosophy drives every digital decision.

“We literally listen to member feedback every day,” Tanner reveals. “Some changes are small. Some are big. But they all come from the same place: making people feel good.”

This quest has seen USAA deploy 200-plus artificial intelligence (AI) tools across its business, blending machine learning with cutting-edge generative and agentic AI. Internally, tools like EagleGPT help staff answer questions by analysing more than 20,000 documents at a time. Developers use external AI developer tools to boost coding efficiency and automate data workflows. Externally, AI powers image processing for insurance claims and supports partnerships with open-source large language models. USAA even trains proprietary models for specialised tasks. But it’s not just about tech. It’s about trust.

Following its regulatory brush past, USAA has its dedicated AI Council evaluate every use case for value, feasibility, and risk. And every model undergoes strict performance checks. In 2023, it ran extensive generative AI pilots.

In 2024, it implemented a dozen new tools. Now, it’s scaling agentic AI to automate low-risk processes, end-to-end. One of USAA’s most urgent priorities is modernising its fraud and dispute management with the goal to boost efficiency and compliance, and ensure confidence. And with vast data reserves, USAA is turning digital banking into a source of financial wisdom, too.

“We can give members insights they wouldn’t get from a representative,” Tanner says. “It’s like sneaking a vitamin into candy.”

Most people aren’t tracking their finances daily. But if USAA can deliver bite-sized insights – like spending habits or savings opportunities – it can help members become more financially savvy.

“The one thing I’d love to measure,” Tanner says, “is how we actually make people more financially well-off. If their balances are higher, their credit scores are better, and they’re saving for the future, that’s real impact.”

USAA knows it can’t always offer the best rates. But it can control how it treats its members.

“That’s what the company has done since long before I worked here,” Tanner says. “And it’s why people stay.”

In a crowded market, service is the ultimate differentiator, she believes.

“People have multiple banks and credit cards,” Tanner says. “But they keep their primary account where they’re treated the best.”

And for USAA, that means leading with empathy, specialist understanding, and bespoke products and services, powered by technology.

This article was published in The Fintech Magazine Issue #36, Page 40-41