Engagement Through the Festive Season

NOVEMBER 2025 | What the data is really telling us — and why it happens every year

Every year, as the festive season approaches, we see a familiar rhythm take shape in customer behaviour. There’s a lift, a lull, and then a sharp reset — a seasonal pattern that plays out with remarkable consistency across mutual banks.

If you’ve looked at your Engagement trends over previous years, you’ll know the cycle well. November and December bring energy: more spending, more movement across accounts, and a noticeable spark in everyday banking activity. Then January arrives, and everything… softens. Customers take a breath. Their financial habits slow. And suddenly Engagement dips — not in a worrying way, but in a predictable, deeply human way.

Here’s the story the data tells.

The Festive Lift: November–December

As we move into the festive period, Engagement almost always climbs. Customers are shopping, travelling, organising holidays, and settling shared expenses. This creates a surge in:

• POS and Visa transactions

• NPP usage, which continues to grow rapidly across every Spark client

• Peer-to-peer transfers, shared costs, and real-time payments as families and friends coordinate holiday plans

December is, without fail, one of the strongest months of the year for customer-initiated activity. NPP in particular continues to reshape the landscape — steadily cannibalising BPAY, ATM, and even some card activity. It’s become the go-to way to settle anything quickly: gifts, travel bookings, reimbursements, you name it.

The January Slowdown

Then the holiday haze sets in.

January brings a predictable softening across almost every channel. Customers:

• Pull back on spending after December’s peak

• Slow digital and branch interactions while travelling or taking time off

• Delay large bills until routines resume

• Pause or shift Direct Debits and regular payments

• Reduce ATM usage even further, continuing its long-term decline

This is also when we see the quirkiest — and most telling — behaviour emerge: BPAY volatility.

December often records a noticeable dip, followed by one of the biggest spikes of the year in February, lining up neatly with utility bills, school fees, and large quarterly payments catching up after the summer break.

It’s not disengagement — just customers stepping away from their financial routines while their personal routines are on pause.

The February Reset

Once school and work starts up again, routines return, and inboxes are finally sorted, Engagement snaps back.

Payroll normalises.

BPAY and Direct Debits surge.

Term Deposits rebound as customers re-enter the market — often influenced by rate movements they parked during the break.

In fact, February consistently delivers some of the largest “catch-up spikes” we see all year.

Key Shifts Spark Is Seeing Across the Sector

Here’s what stands out across Spark’s dataset:

1. December remains the peak for customer activity

POS, Visa, and NPP all climb sharply — with NPP leading the charge as customers lean into real-time payments.

2. NPP’s structural rise continues

It is steadily cannibalising BPAY, ATM, and some card usage.

3. BPAY is becoming a bill-shock indicator

Its volatility tells us more about customer bill cycles than any other channel.

4. POS and Visa remain stable and mature

Large mutuals show consistent patterns; smaller ones see sharper monthly swings due to smaller customer bases.

5. Term Deposits reveal rate sensitivity

Declines in December, strong re-entry in January — a clear seasonal rhythm tied closely to rate movement.

Turning a Seasonal Dip into an Opportunity

The January lull isn’t something to fear — but it is something to plan for.

A drop in Engagement can provide visibility into the customers likely to disengage longer-term. It can also highlight valuable segments who stay active despite the seasonal slowdown — often payroll customers, MFI segments, or digitally engaged transactors.

Understanding these shifts helps mutual banks:

• Prioritise segments that need re-activation

• Identify opportunities as spending picks back up in late summer

• Tailor February/March campaigns to re-spark activity

• Support frontline staff with conversations that resonate with where customers are right now

The takeaway is simple: January dips are normal, predictable, and full of insight.

With the right triggers, conversation starters, and targeted campaigns, mutual banks can use this quiet period to re-engage customers just as they refocus on their finances for the year ahead.

If you'd like help preparing your early-year engagement plan, the Spark team can support you with journeys, reporting, and re-activation strategies built for mutual banks.