Alkami Unveils New Research on Business Banking Digital Maturity

Rhea-AI Summary

Alkami Technology (NASDAQ: ALKT) has released a new study on business digital maturity in banking, conducted with Jim Marous and Emerald Research Group. The survey of 150 digital decision makers from U.S. banks and credit unions revealed that institutions leading in digital maturity are growing nearly 10 times faster than less advanced peers.

The research identified three key pillars of digital maturity: user experience, employee productivity, and mindset/culture. While larger institutions often lead in digital maturity, the study found that 20% of digital leaders have less than $1 billion in assets, demonstrating that smaller institutions can excel in digital transformation.

Positive

• Financial institutions with high digital maturity show 10x higher revenue growth compared to less mature counterparts
• Research demonstrates that smaller institutions (under $1B in assets) can successfully compete in digital banking

Negative

• None.

Insights

Market Research Analyst

This research reveals important insights about digital transformation in business banking, highlighting a significant 10x revenue growth differential between digitally mature institutions and laggards. The correlation between digital maturity and financial performance demonstrates a clear competitive advantage for institutions investing in digital capabilities.

The finding that smaller institutions (<$1B in assets) can achieve digital leadership status while some larger ones (>$10B) lag behind challenges conventional wisdom about resource advantages. This suggests that strategic execution and cultural alignment are more critical than raw financial resources for digital success.

For Alkami, this research positions them as a thought leader in the digital banking transformation space and validates their market strategy. However, the immediate revenue impact is likely minimal as this is primarily a marketing and positioning effort rather than a direct business catalyst.

Survey reveals four segments of business banking digital maturity in financial institutions and key growth opportunities

PLANO, Texas, Nov. 20, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., in partnership with industry expert Jim Marous and the Emerald Research Group, announced today the release of a comprehensive new study on business digital maturity in banking. The study surveyed 150 digital decision makers operating in business banking solutions from banks and credit unions across the U.S., revealing distinct segments of business digital maturity based on how financial institutions leverage culture, strategy, and technology to drive results.

"The most digitally mature financial institutions in business banking are defined by their culture, which informs everything from strategy to execution. Their mindset dictates the toolset and skillset that, in combination, are strongly correlated with better products, faster execution, and higher revenue growth than their peers," said Allison Cerra, chief marketing officer at Alkami.

Key findings from the research include:

• A strong correlation between digital maturity and revenue growth, where financial institutions leading in digital maturity are growing at nearly 10 times the rate of their less advanced counterparts.
• Three foundational pillars that define business digital maturity: user experience (UX), employee productivity and mindset/culture.
• Financial institutions that prioritize digital investment and execution are more likely to view megabanks as their primary competitors and to quickly close gaps in their digital offerings.
• Digital maturity leaders often skew larger in asset size, however, one in five leaders has less than $1 billion in assets, showing that smaller institutions can outperform larger ones.
• Conversely, over one in five of the least digitally mature financial institutions hold more than $10 billion in assets, proving that size alone does not ensure digital leadership.

Research analysts benchmarked the financial institutions in the study, and categorized them into four cohorts of maturity, each with a clear strategic path for progression in their digital maturity. Whether it's investing in critical technologies, optimizing user experiences, or exploring advanced automation, the report outlines actionable steps for financial institutions at every stage of maturity.

"As we saw in our Retail Digital Sales & Service Maturity Model research, size is not always the determining factor in digital maturity," said Jim Marous, owner and chief executive officer of the Digital Banking Report. "Our research shows that financial institutions of all sizes can lead by adopting a data-informed mindset, investing in technology, and fostering a culture that values data and digital innovation."

To explore the four Business Banking Digital Maturity cohorts and other research insights, click here for the full report.

To explore the Retail Digital Sales & Service Maturity Model research report, click here.  To take the digital maturity assessment, click here.

Alkami has been certified by J.D. Power for providing "An Outstanding Mobile Banking Platform Experience¹."

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 business banking, digital account opening, payment security, 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 

1 J.D. Power 2024 Mobile App Platform Certification ProgramSM recognition is based on successful completion of an audit and exceeding a customer experience benchmark through a survey of recent servicing interactions. For more information, visit www.jdpower.com/awards.

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SOURCE Alkami Technology, Inc.

FAQ

What are the key findings of Alkami's (ALKT) 2024 business banking digital maturity study?

The study found that digitally mature institutions grow 10 times faster than less advanced peers, identified three pillars of digital maturity (UX, employee productivity, and mindset/culture), and revealed that 20% of digital leaders have less than $1 billion in assets.

How many financial institutions did Alkami (ALKT) survey in their 2024 digital maturity research?

Alkami surveyed 150 digital decision makers from banks and credit unions across the United States.

What are the three pillars of business digital maturity according to Alkami's (ALKT) 2024 research?

The three foundational pillars are user experience (UX), employee productivity, and mindset/culture.