Megabanks and fintechs continue to invest vast amounts of money into technology to digitally seize market position from community and regional financial institutions (FIs). Despite the challenges these forces pose, there are banks and credit unions who experience significant growth.
We’ve noticed common tactics (and recommended a few ourselves) that our most successful clients have adopted to help them grow confidently. Our highest-performing clients have experienced growth by as much as 2X the market rate since 2018 on key performance metrics including digital user growth, asset size growth, and deposits growth. Here are just a few ways they did it.
Don’t Look Back
Growing confidently requires an equal measure of understanding the past and having foresight for the future. In other words, to move forward, you can’t repeat the past. That includes returning to legacy tech providers that have let you and your users down before. Not only are legacy providers inflexible, they also deliver solutions based on dollars and cents rather than serving a financial institution’s situation.
Future focused FIs leave all that behind. They seek modern tech providers who act as partners, building solutions to the FI’s environment. This level of service forms authentic bonds and proves the provider is as committed as you are to servicing users and achieving growth.
Ultimately, the first step to confident growth is not repeating past mistakes when making decisions based on provider attributes.
As you look to the future, don’t get distracted by Megabank strategies. They have to satisfy a much larger user base – as a community bank or credit union, you can focus more on your community and segment.
The attention you give to your community can lead to the development of more meaningful products and services. Unlike Megabanks, you can localize and specialize your digital banking experience to resonate with users. Focus on the entire user journey to find where you can remove friction or add value with your offerings.
How can you use your size and focus to improve your user experience?
Our clients have been able to keep their strategic focus as users receive regular updates from continuous innovation. With a single-code base, user needs are anticipated and quickly met through continuous software delivery. This way, FIs can adapt quickly and users stay engaged.
The Path to Growth
Growth does not always mean expansion. For FIs, it also means driving adoption of products and services you already have with a frictionless digital experience.
Use tools from your tech provider to personalize how you present revenue producing products. For instance, Alkami clients use Flux, our business intelligence and data analytics solution, to identify where to target interstitials that promote existing offerings. Moving from data to insights and showing users what they need when they need it earns trust. Now you’re building a thriving digital community loyal to your brand.
Building a thriving digital community demands more than a frictionless experience with useful backend features, however. Security should be the foundation of it all. As evolving tech pushes the cost of entry lower for cyber attackers, regional and community FIs are at greater risk. Security has been part of your DNA as an FI before digital banking, and your web and mobile experience should keep user information as secure as ever.
You can also use analytics tools to benchmark performance and security against peers and the Megabanks. This insight ensures your tech provider is keeping pace or leading with features that keep you competitive.
If you find your aspirations are beyond the reach of your digital banking solution, or you’re surprised with critical deficiencies in availability, security, and compliance, look to the success of your peers – what are they doing differently?
What you’ve read are just some of the approaches Alkami’s highest performing clients have taken to achieve growth across digital users, asset size, and deposits. But the biggest takeaway from their journey to growth is this – don’t buy a tool when what you need is a solution. Never be boxed into the wrong tech platform.