The rapid advancement of digital technologies is driving a pivotal shift in the financial sector, requiring financial institutions to adapt swiftly to maintain their competitive edge. Among the myriad of digital banking innovations, the integration of digital investing into the arsenal of services offered by these institutions stands out as a strategic imperative. It’s not just about keeping pace with technological trends; it’s about seizing an opportunity to deepen relationships with account holders, retain and attract assets, and stay competitive in a market increasingly influenced by fintech competition.
With the growing allure of external fintech apps and platforms offering easy access to stocks, exchange traded funds (ETFs), and even cryptocurrencies, financial institutions risk losing not just deposits but the very trust and loyalty they’ve worked hard to build. A revealing study by InvestiFi highlights that a significant number of investors are already using popular third-party apps like Cash App (36%), Fidelity (18%), and Robinhood (16%) to manage their investments.
This reality underscores the importance of financial institutions offering a digital investing solution that is seamlessly integrated into their existing online banking platform. Such a move not only has the potential to help retain deposits and account holders but also attracts new ones looking for a one-stop financial ecosystem.
Introducing digital investing solutions within a financial institution’s online banking platform fosters an environment where account holders can conveniently explore self-directed investing options. This integration benefits the institution in several ways, like enhancing account holder convenience and trust. When account holders use their primary financial institution’s app for a range of services including investing, it deepens their relationship with the financial institution and can improve retention rates.
Furthermore, offering digital investing directly within the financial institution ecosystem addresses the competitive threat from fintech companies head-on. By providing a comprehensive suite of services that includes self-directed investing, these traditional institutions can offer a compelling alternative to standalone investing apps. Offering these features can also attract new account holders looking for a unified banking and investing experience.
InvestiFi’s research also found that 38% of respondents are currently invested in cryptocurrency. Recognizing this trend, the inclusion of cryptocurrency investing options further aligns with consumer interest, providing a secure avenue for account holders to venture into digital currencies. This move can capture a segment of the market keen on exploring crypto
investments, ensuring the financial institution remains relevant.
A significant portion of InvestiFi’s survey participants, 65%, reported active investments in the stock market. Offering stock investment as a service can also set a financial institution apart in a crowded industry. It aligns with the interests of a broad consumer base and opens doors for enhanced financial education and engagement. Integrating stock investment opportunities into digital banking simplifies the investing process. This integration can foster a seamless and holistic financial experience, where account holders are able to effortlessly transfer funds across their accounts and investment portfolios – resulting in higher account balances and an increase in the overall investment funds managed by the financial institution.
Selecting the right technology partner is crucial for successfully implementing digital investing solutions. The platform must be secure, scalable, and compliant with industry regulations to protect both the institution and its account holders. Equally important is choosing a partner that shares the financial institution’s values and commitment to financial wellness, ensuring the solution enhances the overall banking experience. By integrating digital investing into their online banking platform, financial institutions can strengthen account holder relationships, attract new assets, and stay competitive in an evolving market. This strategic move not only secures their position but also unlocks new revenue opportunities, paving the way for long-term success in digital finance.
You can connect with InvestiFi at Alkami Co:lab, March 31 through April 2! Stop by to uncover how our solutions seamlessly enhance account holder experience by integrating investing directly into your existing digital banking solutions. Whether you’re interested in offering your account holders access to stocks and ETFs, guided investing, or crypto trading, we’ve got you covered. InvestiFi provides a pathway to new non-interest income streams while helping keep funds stay in-house. We hope to see you in Nashville.
