Alkami Technology Inc
11/14/2024 | News release | Distributed by Public on 11/14/2024 11:26
Gain a Competitive Edge through Data Analytics in Banking
The top 3 ways data insights from core data, transactions, and behaviors can make your bank or credit union more competitive
This blog post was originally published in August 2024 and was republished November 14, 2024 with updated research.
Understanding the needs and behaviors of account holders is crucial for staying ahead of the competition in 2025 and beyond. To meet account holders' evolving demands, data analytics in bankinghas become an essential tool for uncovering actionable data insights, driving innovation, and optimizing services. The advantage of being a truly data-informed organization is the ability to uncover opportunities for product development and engagement already within the existing customer or member base. By using clean, tagged transaction and behavioral data, insights can be discovered and will provide a comprehensive understanding of account holders, enabling personalized banking experiences, increasing deposits, improving card utilization and more.
The Challenge of Data Analytics in Banking
Most regional and community financial institutions don't have in-house data scientists, and those that do often find these experts spend about 40% of their time aggregating, standardizing, cleansing and categorizing datato prepare it for analysis. This significant time investment limits how much insight the data team can generate.
But the lack of clean data can impact more than just daily operations. Research shows that financial institutions with a data-first mindset can experience up to twice the revenue growthcompared to those that lag in data maturity. This is where Alkami's patented artificial intelligence-driven data analytics in banking comes into play. Data analytics combines transaction insights with product adoption and usage data, offering financial institutions a deeper understanding of their account holders without the exhaustive time investment in data preparation.
Top Use Cases for Data Analytics in Banking
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Personalize Banking Experiences Using Data
Today's account holders expect personalized experiences in every digital interaction. To meet these expectations, financial institutions need deep insights into account holders' life events and financial behaviors. Superior data analytics in banking combine core data with transaction data, providing a comprehensive view that allows for tailored digital interactions. By turning data into actionable promotions, financial institutions can deliver individualized recommendations at the right time, supporting relevant product adoption that will result in an account holder having a comprehensive financial portfolio.
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Enhancing Card Utilization as a Revenue Stream
When lending declines, financial institutions must find alternative sources of non-fee income. Promoting card utilization is one such strategy. When properly done, data analytics in banking can identify opportunities to increase card usage, such as encouraging account holders to use the institution's debit or credit card for subscription payments. For example, promoting the benefits of using a card for monthly cell phone bills to account holders who currently don't do so can capture more interchange revenue. This targeted approach ensures that the right message reaches the right audience, driving higher card utilization rates.
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Competing for PFI Status
We know how important achieving primary financial institution (PFI) status with as many account holders as possible is a top priority for bankers. Recent digital banking consumer research shows that the location of an account holder's direct deposit plays a big role in their PFI preference. With the help of data insights, financial institutions can cross-sell with confidence, gaining more transaction accounts and savings deposits. By comparing the products account holders have with your institution against those they have with competitors, data insights can reveal intel that will help financial institution leaders build campaigns to win back share of wallet. This competitive intelligence is invaluable in crafting strategies that position the bank or credit union as the PFI for account holders.
Powerful Results Driven by Data Insights
Alkami's data insights empowers financial institutions to leverage their data for actionable insights that drive product innovation and optimize account holder experiences. From personalized banking experiences to increased deposits and enhanced card utilization, data analytics in banking provide the insights needed to meet the evolving demands of account holders.
Here's what our customers have to say about leveraging data insights to power their growth:
"Alkami identifies every useful data point in the transaction stream that can help us better serve our members."
- Alisha Johnson, Chief Growth Officer at Ideal Credit Union
"When we wanted to create audiences based on the needs of the market, we would get lists that weren't accurate due to uncleansed data. We spent a lot of time trying to get the basics. Now with Alkami, we have it all at our fingertips."
- Emily Stewart, Director of Digital Marketing & Analytics at Meritrust Credit Union
"Alkami's Data & Marketing Solutions have allowed us to better understand our account holders and better serve them."
- Cayla Keyes, Vice President and Retail Sales Manager at INB, National Association
By making actionable data insights accessible, financial institutions can focus on what truly matters - understanding and serving their account holders better. With AI-driven data analytics in banking, turning data into insights has never been more efficient or impactful. Embrace the power of data with Alkami and unlock new opportunities for growth and engagement.