Business Banking Digital Maturity Model

Research reveals the defining factors of digital maturity among financial institutions that offer business banking solutions

Read the Retail Digital Sales & Service Maturity Model report here. Take the digital maturity assessment here.

Alkami surveyed 150 digital decision makers from banks and credit unions across the U.S., revealing distinct segments of business banking digital maturity based on how financial institutions leverage culture, strategy, and technology to drive results.

Research analysts categorized these financial institutions into four cohorts of digital maturity unique to the business banking market – Cautiously Modernizing, Optimistic Believers, Emerging Pioneers, and Tech Titans.

Digital maturity is not only tied to the capabilities financial institutions offer via their business banking solutions, it also correlates to the financial success of that organization. The Tech Titans cohort encompass the most digitally mature organizations and experience nearly 10x more average annual revenue growth than their least digitally mature counterparts.

segmenting the market

Developed in partnership with Jim Marous and Emerald Research Group, this research report explores the various segments of business banking digital maturity among financial institutions and defines strategies that decision makers can leverage to accelerate growth and operational efficiencies to attain the next level of digital maturity.

The research identified three key pillars that financial institutions need to deliver on to approach business banking digital maturity – user experience, employee productivity, and mindset.

User Experience

While many banks and credit unions offer expected business digital banking capabilities, where leaders begin to emerge from the pack is when organizations invest in the user experience to make these solutions faster, intuitive, and personalized.

Employee Productivity

The most mature financial institutions not only prioritize account holder-facing technology, but are focused on improving their employees’ experience by reducing points of friction, democratizing data, and automating traditionally manual processes – resulting in time savings and a seamless digital user experience to make their jobs easier.

Mindset

To successfully deliver innovative solutions to the market, financial institution leaders must embody a strategic mindset and foster an organizational culture that acts with conviction because they believe in the process of their digital transformation efforts.

Perception has started to shift around business banking solutions, causing more leaders to reallocate and invest in their digital experience. Among the most digitally mature organizations, digital banking is seen as more than an account servicing channel, but as a production engine for account sales and business onboarding. Tech Titans have prioritized the payments experience, can leverage fraud prevention as a paid service, and utilize a data-driven strategy for decision making, personalization, and operational efficiency.

Actionable Takeaways from the Report

Prioritize Digital Maturity to Amplify Revenue Growth
Digital maturity is strongly linked to revenue performance, with digitally mature institutions growing up to 10x faster than those least mature. To activate this growth trajectory, financial institutions should focus on advancing their digital channels and capabilities by setting clear goals, allocating budgets accordingly, and tracking key performance indicators that directly tie digital maturity to business outcomes, such as acquisition and retention rates.
Develop and Strengthen the Three Pillars of Digital Maturity
Center digital transformation efforts on three foundational pillars: enhancing user experience, improving employee productivity, and fostering a digital-first culture and mindset. Invest in a best-in-class user experience, tools that streamline employee workflows, and develop a culture that reinforces a forward-looking, innovative approach across all departments.
View Megabanks as a Benchmark to Accelerate Innovation
Financial institutions that see themselves competing directly with megabanks are better positioned to close competitive gaps because they recognize the need to aggressively invest in digital advancements like seamless experiences, data-driven personalization, and automation. By investing in business banking solutions that meet the needs of today’s users—both account holders and operational teams— financial institutions can develop differentiators that enable them to thrive in a saturated market.
Strive for Digital Leadership Regardless of Institution Size
Digital maturity is achievable for institutions of all sizes. While larger institutions often lead in digital maturity, smaller ones can also excel—1 in 5 digitally advanced institutions have below $1 billion in assets. Smaller financial institutions can leverage agility as an advantage, prioritizing flexibility and quicker response times to account holder expectations.
Don’t Rely on Scale Alone for Digital Success
Size alone doesn’t guarantee digital leadership; over 20% of the least digitally mature institutions are above $10 billion in assets. Large institutions must actively pursue digital transformation and avoid complacency. Foster a culture of continuous digital improvement, aligning each department with overarching strategic goals, and ensure digital maturity is a core focus for both leadership and relationship managers.