Alkami Technology, a cloud-based digital banking solutions provider for banks and credit unions in the US, announced the release of its new research report, “Digital Banking Market Pulse: Big Tech’s influence on digital banking.”
Alkami conducted primary research among 795 US consumers in June of 2021 to better understand Big Tech’s influence on the digital banking experience. End consumers were well represented from multiple types of FIs, including megabanks, neobanks and regional and community credit unions and across all generations, from Gen Z to Boomers.
“Today’s consumers expect the advanced digital experience provided by Big Tech, and this expectation is extending to all digital aspects of their lives, including daily banking transactions,” said Allison Cerra, chief marketing officer, Alkami. “To keep pace and remain competitive, FIs must recognize what customers and members most want, and leverage modern digital banking platforms to achieve those goals.”
Highlights of the research showcased in the new report include:
- Users expect digital experiences aligned with what Big Tech can offer. Almost 40% of consumers agree that the “bank” of the future will be first and foremost a technology company.
- When it comes to digital banking, the generation gap closes. Baby Boomers are more likely to prefer an engaging, ever-evolving, relevant, and multifunctional digital banking experience than all other generations. They are also just as likely as Gen Z to want it to be autonomous.
- Tomorrow’s tech is today’s competition. Nearly one-third of consumers say they would switch from their primary FI to one of the major tech or fintech brands.
To ensure ongoing relevance in the face of Big Tech’s influence, regional and community FIs must accelerate technology adoption. Cerra said, “To help financial institutions in their quest to elevate the digital banking experience and stand out from the crowd, those organizations that provide FIs with digital banking platforms must likewise rise to the occasion by ensuring modern, flexible offerings.”
