Alkami Telemetry Data – Competitive Relationships Identified
Primary Financial Institution (PFI) status is an ongoing challenge
Source: 2023 Alkami Telemetry Data is sourced from a panel of more than 20 financial institutions with a range of asset sizes from under $500M to $15B. The data panel represents 2.16 billion transactions analyzed representing the financial behaviors of 1.1 million account holders across 8 different age brackets. Alkami analyzed payments and transfers made to more than 5,300 banks, credit unions, mortgage providers, auto loan providers, student loan providers, credit cards, consumer finance, investment brokerages, cryptocurrency exchanges, buy now pay later providers and P2P services. Account holders in the panel who did not have any competitive financial provider payments were excluded from the analysis.
What we’re seeing: Analyzing data from Q1 2023, Alkami identified that account holders made payments to an average of 3.22 different providers. Account holders with six or more relationships represent 15.71 percent of the panel. The data shows that the 1 percent of account holders with the most financial provider relationships had 12+ relationships, with the most extreme outlier having 36 financial relationships!
Takeaway and Call to Action for FIs: Account holders have relationships with a wide variety of financial services providers. Financial services fragmentation makes it harder than ever for regional community financial institutions (RCFIs) to stake a claim to a PFI relationship. RFCIs should be aware that account holders’ loyalty is up for grabs. It’s vital for FIs to examine their own account holder transaction data to determine which competitors their account holders are engaging with and use this intelligence to strategically innovate products and services.
Interested in learning how customer insights like these can empower your financial institution to grow your business?