Adoption of Alkami's Data & Marketing Solutions Grows as Demand for Personalized Digital Banking Experiences Increases

Rhea-AI Summary

Alkami Technology, a leader in cloud-based digital banking solutions, has seen a 76.5% rise in new contracts for its Data & Marketing Solutions over the past two years compared to the previous period. Financial institutions using these solutions achieve an average 13X ROI. The tools include Transaction Data Cleansing, Customer Insights & Marketing Automation, and AI Predictive Models, which help banks and credit unions better understand and serve their account holders. These advanced solutions enable personalized banking experiences, deeper user engagement, and more effective marketing campaigns. Financial institutions are increasingly adopting these technologies to stay competitive in a fragmented market.

Positive

• 76.5% increase in new contracts for Data & Marketing Solutions over two years.
• Average 13X ROI for financial institutions using Alkami's solutions.
• Enhanced understanding and service to account holders through data-driven insights.
• Automated marketing campaign reporting and adaptation.
• Prediction of account holder behavior using AI and machine learning.

Negative

• No specific financial figures or detailed revenue impact provided.
• General statements on competitive market pressures without concrete data.

Insights

Financial Analyst

Alkami Technology, Inc. has reported an impressive 76.5% increase in the number of new contracts signed over the past two years for its Data & Marketing Solutions, as compared to the previous two-year period. This growth signifies strong market demand for personalized digital banking solutions and underscores the firm's ability to capture an expanding customer base among regional and community banks as well as credit unions.

From a financial perspective, the claim of achieving a 13X return on investment (ROI) is particularly notable. For investors, this is a important metric, indicating that the implementation of Alkami's solutions can significantly enhance the financial performance of its clients. High ROI figures often lead to increased client retention and attract new business, potentially driving Alkami’s future revenue growth.

However, it's important to critically assess the sustainability of this growth. The digital banking landscape is highly competitive and while Alkami's solutions appear compelling now, their continued success will depend on their ability to innovate and adapt to changing market demands. Investors should also consider the broader economic context which may impact financial institutions’ budgets for technology investments.

Overall, Alkami’s performance in increasing contracts and delivering high ROI indicates a solid business model and effective product offerings, although continuous innovation will be key to maintaining this trajectory.

Tech Expert

Alkami’s suite of Data & Marketing Solutions comprising Transaction Data Cleansing, Customer Insights & Marketing Automation and AI Predictive Models positions the company well within the broader trend of digital transformation in banking. These tools address critical areas of data management and customer engagement, which are top priorities for financial institutions aiming to deliver personalized banking experiences.

From a technical standpoint, the Transaction Data Cleansing feature is fundamental as it simplifies complex transaction data into actionable insights. Clean and tagged data forms the backbone of any predictive analytics and machine learning model, ensuring high accuracy in the outputs.

The use of AI Predictive Models to anticipate account holder behavior highlights Alkami's advanced capability in integrating machine learning techniques. This can help financial institutions proactively tailor their services, thus increasing customer satisfaction and potentially reducing churn rates.

That said, the effectiveness of these technical solutions hinges on their adoption and proper utilization by the financial institutions’ staff. Training and change management are areas that could present challenges. Additionally, maintaining data privacy and security is paramount, given the sensitive nature of financial data involved.

In summary, Alkami’s technological offerings are robust and align well with current industry trends, but the practical challenges of implementation and adoption should not be overlooked.

Market Research Analyst

The significant increase in contract signings for Alkami’s Data & Marketing Solutions reflects a growing trend among financial institutions to invest in digital transformation. Regional and community banks, along with credit unions, are under substantial pressure to enhance their digital banking experiences to compete with larger banks and fintech companies. Alkami’s solutions seem to be addressing this demand effectively.

A diverse range of financial institutions adopting Alkami’s products indicates a broad market appeal and a potentially large addressable market. The reported 76.5% increase in new contracts is a positive indicator of market reception and suggests that Alkami is successfully differentiating itself from competitors.

Furthermore, the focus on personalized marketing campaigns and the ability to measure engagement with precise reports and metrics offer financial institutions a clear value proposition in enhancing customer engagement and retention. This aligns with broader market trends where data-driven decision-making is becoming a key factor for competitive advantage.

However, market dynamics can shift rapidly and ongoing innovation will be crucial. Competitors may also enhance their offerings and economic conditions could influence financial institutions' investment capacities. Investors should monitor how Alkami continues to evolve its products and respond to market challenges.

In conclusion, Alkami’s growing market traction and the focus on personalization and data-driven solutions align well with current market needs, providing a positive outlook for the company’s prospects in the digital banking sector.

Financial institutions using Alkami's Data & Marketing Solutions attain 13X ROI on average

PLANO, Texas, June 5, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., announced that the number of new contracts signed by financial institutions for Alkami's Data & Marketing Solutions have increased a total of 76.5% for 2022 and 2023 combined compared to contract signings for the previous two-year-period (2020 and 2021 combined). This momentum comes as regional and community banks and credit unions face increased pressure to provide a top tier digital banking experience for account holders, and search for innovative marketing, data and artificial intelligence (AI)-driven solutions to help them deliver a digital sales and service platform.

"Alkami's Data & Marketing Solutions have allowed us to better understand our account holders, and in turn, better serve them," said Cayla Keyes, vice president and retail sales manager at INB, National Association. "In addition, being able to accurately measure engagement with campaigns and see who are using competitive products empowers us to more relevantly build marketing messaging that in turn, drives more ROI."

Through Alkami's Data & Marketing Solutions, banks and credit unions can leverage clean, tagged transaction data to uncover actionable insights, create personalized banking experiences, drive user engagement and deepen relationships with account holders. The solutions include:

• Alkami's Transaction Data Cleansing which transforms complex transaction descriptions into simple, usable merchant names, categories and logos. As a result, financial institutions can outsource their transaction data analysis through an automated, accurate, daily data cleansing process.
• Alkami's Customer Insights & Marketing Automation which helps banks and credit unions predict what account holders are going to do next, and then transform those insights into personalized marketing campaigns. This solution also automates marketing campaign reporting, allowing marketers to quickly adapt to campaign engagement and better target initiatives.
• Alkami's AI Predictive Models which use machine learning and AI to predict account holder behavior by using data to identify daily shifts in spend categories and financial patterns. This ultimately helps predict account holders' financial behaviors and needs, empowering financial institutions to identify and then further engage with those who demonstrate behaviors most likely to lead to retention and account growth.

"Alkami's data-driven solutions, including the customer insights and market automation tool, have allowed us to quickly adapt to campaign engagement and shift our resources to where they are most beneficial," said Steve Zich, chief marketing officer at Capital Credit Union. "In today's competitive environment, our marketing professionals must be data savvy to achieve results. Solutions like these that allow us to act nimbly will be key to our continued growth."

As U.S. financial institutions become more digitally mature to remain competitive in a fragmented, evolving market, all facets of their operations are becoming more technology and data-driven – and marketing is no exception.

"More than ever, revenue growth and data are intertwined for financial institutions. As our recent Digital Sales & Service Maturity Model research found, a hallmark of the most digitally advanced financial institutions is the democratization of data-fueled decisions. Data underpins the individualized experiences that account holders are looking for today, and it is essential that financial institution leaders transform to the data-informed digital banker that leverages this crucial resource to drive their financial institutions forward," said Nate Shahan, vice president, product management at Alkami. "Alkami is proud to provide these solutions that enable banks and credit unions of all sizes to achieve the highest level of digital maturity with data."

To learn more about Alkami's Data & Marketing Solutions, visit here.

About Alkami
Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and commercial banking, digital account opening, and data and marketing solutions. To learn more, visit www.alkami.com.

Media Relations Contacts
Vested
alkami@fullyvested.com

Marla Pieton
marla.pieton@alkami.com

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SOURCE Alkami Technology, Inc.

FAQ

What is the ROI for financial institutions using Alkami's Data & Marketing Solutions?

Financial institutions using Alkami's Data & Marketing Solutions attain an average 13X ROI.

How much has Alkami's Data & Marketing Solutions contracts increased?

The number of new contracts for Alkami's Data & Marketing Solutions increased by 76.5% over the past two years.

What technologies do Alkami's Data & Marketing Solutions include?

Alkami's solutions include Transaction Data Cleansing, Customer Insights & Marketing Automation, and AI Predictive Models.

How do Alkami's Data & Marketing Solutions benefit financial institutions?

They help financial institutions better understand account holders, create personalized experiences, drive engagement, and improve marketing campaigns.

Which financial institutions are adopting Alkami's Data & Marketing Solutions?

U.S. regional and community banks, as well as credit unions, are adopting these solutions to enhance digital banking experiences.