While account holder-facing innovations often grab headlines as the fuel for acquisition and retention, internal productivity advancements are the quiet force driving financial institutions forward. According to Alkami’s 2024 Business Banking Digital Maturity Model Report, institutions that invest in employee productivity see faster execution rates and higher satisfaction with account holders. Why? Because they’re investing in their employees’ experience, streamlining manual processes, and empowering their workforce with data-driven insights for better decision making.
Digitally mature institutions are shaping the industry and expectations of business owners. They’re breaking down barriers and challenging antiquated business banking solutions by investing in the user experience to make it easier for businesses to manage their finances. Among these leading organizations, 65% indicate they “tend to move fast in execution once we make a decision,” compared to just 36% of institutions that don’t prioritize employee technology investments. After surveying digital decision makers, Alkami’s research found that the most mature organizations put equal investments into fraud prevention and security solutions, as well as automation to improve employee productivity.
Imagine this scenario. A new business owner visits an institution’s website and applies for a business checking account. The institution had invested in the end user experience so the applicant was able to simply complete their required fields and provide a funding method. They submit their application and wait. And wait. And wait. That’s where the enhancements ended. The institution had not extended these advancements to their back office where they could have automatically verified the applicant’s identity, opened the new account on their core, and seamlessly registered the applicant into digital banking. While that was just an example, think about the efficiencies that institution could have gained, in addition to the satisfied account holder. By streamlining the account origination process, the financial institution would have 1) given the business owner faster access to their new account to begin banking and 2) freed up the employee dedicated to manually processing that application to focus on other initiatives, like servicing existing business accounts.
Aside from the cost and time savings associated with automation, financial institutions can also benefit from a reduction in human error that is a consequence of manual efforts. However, that’s not to say that automation and artificial intelligence (AI) is not infallible. AI-powered technology will require human oversight to ensure that it performs effectively – without bias or hallucinations, protecting data, and in accordance with regulatory requirements. Said simply, AI can help get the job done but it cannot do it alone. AI should be considered a tool (in a large toolbox) that can perform analysis, manual work, and support inquiries with regular human verification and intervention. Wondering where to begin? The foundation for success using automation or AI is clean data.
Of course, prior experience is invaluable, but what really moves the needle is institutional data. It is a treasure trove of information just waiting to be activated. Among the most digitally mature organizations, 47% of decision makers said they trust data to make most decisions.
By democratizing data across the organization, financial institutions can equip their relationship managers with data going into client-facing meetings – ensuring that each product recommendation or support inquiry is personalized to each business’ needs. Seems straightforward, but in application, 70% of the most digitally mature organizations empower relationship managers to leverage client account activity data. On the flip side, only about 11% of the least mature organizations activate that data – creating a tremendous opportunity for institutions to better serve businesses with tailored service.
A data-informed banker can create the outcomes their institution aspires to achieve. In fact, the most digitally mature financial institutions in business banking grew average yearly revenue 10x faster than their least mature counterparts.
As the workforce evolves, millennials and Generation Z (Gen Z) are increasingly redefining workplace expectations and needs. Work-life balance has become non-negotiable, with 81% of Gen Z employees prioritizing flexibility in a potential employer. Millennials share similar values, seeking workplaces that provide autonomy and adaptability while still offering meaningful career progression and skill-building opportunities.
The growing reliance on technology in professional settings also underscores Gen Z’s expectations. In a recent poll, surveyors discovered that among young leaders, 93% of Gen Z and 79% of millennials use two or more AI-powered tools on a weekly basis – leveraging AI for routine tasks like drafting emails or capturing meeting notes. Employers should evaluate which solutions they want to make available to their workforce to meet these tech-driven expectations and foster innovation while ensuring responsible use of AI.
In addition to technology and flexibility, both millennials and Gen Z are placing greater emphasis on workplace culture. Gen Z is known to advocate for their beliefs and live by their values. They expect brands to be authentic and want them to contribute to social responsibility. Eighty-six percent of Gen Zs say having a purpose is key to their overall job satisfaction and well-being. Similarly, mental health support is another growing need, as 53% of Gen Z report struggles with loneliness, further emphasizing the importance of holistic wellness programs. Employers who prioritize inclusive cultures, flexible work models, and wellness offerings will position themselves as top destinations for this influential cohort – fostering both retention and engagement in a rapidly changing workforce.
With a solid understanding of the next generations’ needs, financial institutions can prime themselves as a trusted employer that offers growth opportunities and job security. Banks and credit unions should open their pool of potential candidates by looking outside of the traditional banking sector for skilled talent – the most digitally mature institutions are already capitalizing on this strategy.
Attracting Gen Zs and millennials to work at a bank or credit union is only one piece of the puzzle. Then comes the task of retaining them. Rising leaders are looking for career development. They want to work at an organization that believes in their potential and can help them achieve their goals. The majority of digitally mature organizations consistently offer their employees opportunities for upskilling, as well as foster a digital-first culture.
For executives committed to operational excellence, start by exploring how AI, automation, and talent development programs can empower your workforce to deliver the digital-first experiences today’s businesses expect. Consider these four steps:
Employee productivity is just one pillar to achieving business banking digital maturity – but an important one that fosters a culture of inclusiveness, collaboration and career development.
