The digital landscape of consumer banking solutions is undergoing a monumental shift, driven by the rapid adoption of mobile and online digital banking solutions. As detailed in the “Alkami Retail Digital Sales & Service Maturity Model Report,” the future of consumer banking is undeniably digital. Traditional banking institutions rooted in physical paradigms find themselves at a crossroads: adapt to the digital wave or risk falling behind in both revenue and account holder growth.

The Digital Maturity Spectrum

This report takes a deep dive into the varying levels of digital maturity across 215  financial institutions, revealing a landscape that is both diverse and dynamic. The research categorizes these financial institutions into four segments based on their digital maturity, revealing a widening chasm between the digitally mature and those still exploring their growth. 

Institutions prioritizing customer-facing digital capabilities over legacy infrastructure are not just reacting to market and account holder expectations; they are proactively cultivating innovation and change-readiness into their organizational DNA.

The Role of Culture and Mindset

Digital maturity extends beyond mere technological investment. The culture and mindset within an institution play a crucial role. While the research shows that ‘customer-first’ is the typical mindset, mature organizations tend to be results-driven while less mature organizations deliver it with smiles. 

When it comes to the digital banking platform, mature orgs prioritize capabilities over aesthetics while those further behind are still focused on look and feel. Financial institutions that foster a culture to prioritize iterative and continuous innovation and embrace change will create a mindset to achieve digital maturity. The toolset and mindset need to work cohesively to deliver the enhanced digital account holder experience.

 
“Progress on this evolutionary path isn’t always determined by organizational size, type or resources. The report profiles “David” institutions — small yet surprisingly sophisticated digital organizations exhibiting far greater advancement than their peers. What unifies these adoption leaders is their relentless, inventive culture embracing change versus fighting it.” 
 
-Jim Marous, Owner and CEO, Digital Banking Report

 

Bridging the Digital Divide

Smaller banks and credit unions are not merely playing catch-up; many are at the forefront of digital innovation. The report highlights that 25% of these nimble institutions are punching above their weight, challenging the notion that digital maturity is the exclusive domain of larger banks. This underscores the importance of strategic direction, execution, and the willingness to embrace digital transformation, regardless of an institution’s size.

Key Takeaways for Retail Banks and Credit Unions

• Prioritize Digital Consumer Experiences: Investing in predictive intelligence capabilities and nurturing a risk-tolerant culture are paramount. This approach not only builds market leadership but also ensures institutions are well-positioned to adapt to future changes.
• Embrace Change and Innovation: The future of consumer banking belongs to those who view technology not as a threat but as an opportunity for growth and enhanced account holder engagement.
• Focus on Digital Maturity, Not Size: The report dismantles the myth that only large banks can achieve digital excellence. With the right mindset and strategic partnerships, smaller institutions can also excel in the digital domain.

In conclusion, the “Alkami Retail Digital Sales & Service Maturity Model Report” offers a comprehensive roadmap for consumer banking institutions aiming to navigate digital transformation. By prioritizing digital account holder experiences, embracing change, and focusing on continuous innovation, banks and credit unions can secure their place in the rapidly evolving digital banking landscape.