Digital channel spending as a percentage of
total IT spend up 3%; Chatbot deployment increased by 15%
PLANO, Texas, April 24, 2024 /PRNewswire/ -- Alkami Technology,
Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital
banking solutions provider for financial institutions in the
U.S., announced today the release of its latest research in
partnership with Cornerstone Advisors' Ron
Shevlin, chief research officer. The Digital Banking
Performance Metrics report is compiled from self-reported data
collected in fiscal year 2023 from a sample of 81 financial
institutions, including 39 banks and 42 credit unions with an
average asset size of $4.6
billion.
With increased industry emphasis on digital offerings and
expanded technology capabilities, banks and credit unions must keep
pace to stay competitive, but that requires insight into what
offerings account holders want most today. This report offers
critical intelligence, diving into the qualities that make a
high-performing financial institution and providing digital
investment and performance metrics to arm bank and credit union
leaders.
The research found that active digital banking users are
increasing their engagement with mobile banking offerings,
particularly with payments. Comparatively, online loan applications
and checking account openings saw a decrease. Other key findings
from this report in comparison to 2023's report include:
- Active digital banking users as a percentage of checking
accounts increased year-over-year from 74% to 77%.
- Total active online banking users (defined as having used the
digital banking system within the past 90 days) as a percentage of
checking accounts dropped 8% from the previous year.
- Digital consumer loan applications as a percentage of total
applications dropped to 41% from 47% the previous year.
- The percentage of checking accounts opened digitally dropped 3%
to 16% of total in 2024.
- Mobile deposit adoption inched up year-over-year, from 52% to
54%.
- Among financial institutions that reported mobile payment
activity, the percentage of digital banking users making mobile
payments on (or through) their bank or credit union's mobile app
grew from 22% to 34%, year-over-year.
"As community and regional banks and credit unions face
increased competition from megabanks as well as fintechs and
alternative banking options, it is crucial for them to understand
how their digital and mobile banking offerings are performing,"
said Allison Cerra, chief marketing
officer at Alkami. "Industry benchmarks, such as those included in
this report, can help financial institutions make informed
decisions about their digital investments and resources."
The report also looks to the future of digital banking, namely
as it relates to machine learning, artificial intelligence (AI) and
related technology advancements. It found that 42% of financial
institutions have already deployed machine learning, and by the end
of 2024, over half will have deployed generative AI. These findings
are also reflected in the increased percentage of institutions with
a chatbot, which grew from 8% in last year's study to 23% in this
year's study. The implementation of AI products and services is an
innovation that will continue to gain traction in the industry.
"The future of banking lies with technology and understanding
how it can further enhance the account holder experience and
transform the organization," said Shevlin. "Overall, the metrics in
this report are intended to give financial institution executives
perspective on the industry's digital banking performance. Banks
and credit unions should adopt a digital banking metric framework
to ensure measurement aligns with strategy," Shevlin continued.
To learn more about the 2024 Digital Banking Performance Metrics
Report, click here.
About Alkami
Alkami Technology, Inc. is a
leading cloud-based digital banking solutions provider for
financial institutions in the United
States that enables clients to grow confidently, adapt
quickly, and build thriving digital communities. Alkami helps
clients transform through retail and commercial banking, digital
account opening, and data and marketing solutions. To learn more,
visit www.alkami.com.
Media Relations Contacts
Vested
alkami@fullyvested.com
Marla Pieton
marla.pieton@alkami.com
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SOURCE Alkami Technology, Inc.