As more credit unions expand their service offering from retail into business, they look to others in the industry who may have the prowess that will allow them to quickly understand the evolving expectations of business owners and grow their operations at scale. To empower financial institutions in that pursuit, Alkami conducted proprietary market research that unveiled the defining characteristics of business banking digital maturity.
The research revealed four distinct cohorts of digital maturity among financial institutions operating in the business banking market. Those who lead the pack, Tech Titans, have mastered three defining pillars—user experience, employee productivity, and mindset. Resulting in the most digitally mature organizations experiencing an average 10x annual average revenue growth rate compared to their least mature peers¹. What sets these institutions apart from their peers and competitors?
Excellence beyond the basics
Tech Titans distinguish themselves by mastering the user experience of the business banking solutions they offer. They realize that capabilities alone will not move the needle. Functionality must be coupled with speed and ease.
With end-to-end automation, these institutions eliminate friction in processes like account creation. Advanced integrations allow real-time communication with accounting and ERP systems, ensuring business members can sync their banking data seamlessly. Tech Titans prioritize tailored, intuitive experiences. For example, their sub-user management systems enable businesses to assign a variety of roles and permissions to employees, monitor activity, and establish transaction approval workflows—ensuring control is always in the right hands and highly secure. To further safeguard businesses, 59% of Tech Titans offer self-service ACH fraud remediation tools that empower businesses to act swiftly while reducing support burden—providing peace of mind without adding complexity. Not to mention, this is a service they can charge for; unlocking a new revenue stream.
Empowering the workforce
A standout business member experience starts with empowered employees. Tech Titans understand this and invest heavily in tools, training, and technology to optimize their workforce. By deploying robotic process automation (RPA) and artificial intelligence (AI), these institutions free employees from repetitive tasks. Imagine a relationship manager who no longer has to manually analyze client transaction data—AI does it in seconds, allowing them to focus on building relationships and providing exceptional customer service. Seventy-percent of the most mature organizations empower their employees with access to actionable insights and account activity data. With modern data platforms, relationship managers can recommend tailored solutions, predict businesses’ needs, and proactively address concerns.
In 2024, Generation Z workers were expected to surpass Baby Boomers in the workforce², while millennials already represent the largest generational cohort. To attract and retain these influential groups, financial institutions must prioritize inclusive workplace cultures, talent development, flexible work models, and wellness programs, as these generations value purpose and authenticity³.
Aside from simply offering their workforce the right tools, financial institutions must also consider how they strategically invest in their talent. The majority of these institutions break from tradition by recruiting talent from outside the banking world, blending new perspectives with industry expertise. Continuous upskilling ensures employees remain equipped to deliver exceptional service and deepen their loyalty—encouraging them to further their career at the institution.
A culture of innovation
Tech Titans adopt a transformative mindset characterized by benchmarking against market leaders. They compare themselves with megabanks rather than regional peers to set high performance and innovation standards. This ambition ensures they stay ahead of the curve. They understand that speed is the name of the game. Once they make a decision, Tech Titans execute decisions quickly, allowing them to adapt to changing market demands and seize new opportunities. Data isn’t just a tool for Tech Titans; it’s their foundation. Predictive analytics guide decisions, from recommending products to anticipating account holder churn. Every move is grounded in measurable insights. Forty-seven percent of Tech Titans say they trust data to make most decisions, leaving room for many to expand their data usage. Their transformative mindset isn’t limited to leadership—it permeates the entire organization, creating a culture where innovation and data-driven decision making thrives.
Building a connected strategy
Being a Tech Titan in business banking isn’t just a badge of honor—it’s a benchmark of digital excellence. These leaders in digital maturity don’t just offer services; they redefine the standard for what business banking can be. Tech Titans recognize that user experience, employee productivity, and mindset are interconnected. For instance, employee satisfaction and productivity directly influence the quality of user experience. A forward-thinking mindset ensures continuous investment and evolution in digital business capabilities.
Staying on top is not guaranteed. The road forward requires an aggressive strategy that further differentiates institutions from their peers in areas already discussed—AI and employee productivity. Less than half of Tech Titans offer chatbots for 24/7 support. While businesses typically have more complex needs, the rate at which AI-powered virtual assistants are progressing may swiftly fill this gap of always available service. Remember, the key to member satisfaction is excellent service from financial institution teams. Technology investments that enable employees to be more productive will drive greater results.
Discover how your financial institution can attain the next level of business banking digital maturity by downloading the full report here.
¹Alkami, Business Banking Digital Maturity Model, 2024, https://www.alkami.com/resources/research/reports/business-banking-digital-maturity-model.
²McKinsey & Company. (2024, February 13). Gen Z in the workforce: Key trends for 2024. Retrieved from https://www.mckinsey.com/~/media/mckinsey/email/genz/2024/02/2024-02-13d.html
³Forbes Business Council. (2024, August 9). Three things Gen Z looks for in the workplace. Forbes. Retrieved from https://www.forbes.com/councils/forbesbusinesscouncil/2024/08/09/three-things-gen-z-looks-for-in-the-workplace/
