96% of financial institutions foresee AI
playing a critical role in the next five years
PLANO,
Texas, Aug. 21, 2024 /PRNewswire/ -- Alkami
Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based
digital banking solutions provider for financial institutions in
the U.S., today released commissioned research findings regarding
the distinct perspectives on artificial intelligence (AI) held by
regional and community financial institutions (RCFIs) compared to
consumers, particularly in terms of its potential, use cases and
adoption. The research revealed a disparity between these two
groups, highlighting the dual task that financial institutions
encounter when adopting AI: leveraging AI to enhance operational
efficiencies and account holder satisfaction while navigating the
complexities of data security, privacy concerns and ethical
considerations.
Alkami's primary research surveyed RCFIs and how they are
currently using or planning to use AI across various digital
banking use cases, their attitudes towards the opportunities and
challenges AI presents, and their outlook on its potential future
impact to their business. Over the same time period, a commissioned
research study in partnership with The Center for Generational
Kinetics was conducted where digital banking consumers were asked
to compare and contrast their attitudes, perceptions and beliefs to
the RCFIs that serve them.
Key findings include:
- While 96% of financial institutions foresee AI playing a
critical role in the next five years, only 61% of consumers expect
AI to significantly influence their banking interactions.
- A considerable majority of these institutions—78%—see AI as a
catalyst for uncovering new business opportunities, while
additional benefits are expected in areas such as time savings for
employees (77%), reducing operational costs (59%), and revenue
growth (56%).
- The progress of leveraging AI in an RCFI is not correlated with
size. Just 21% of RCFIs with more than $5
billion in assets are successfully leveraging AI in at least
a few key areas today compared with 19% of those institutions with
less than $1 billion in assets.
- Millennials are the most comfortable with their data being used
by AI to deliver a better digital banking experience, with 51%
agreeing to the same, statistically higher than all other
generations - Generation Z (Gen Z), Generation X (Gen X), and baby
boomers.
- Younger generations (Millennials and Gen Z) cite financial
wellness as one of the areas where they would be most comfortable
with AI, however it is among the least popular for RCFIs in terms
of AI application or planned experimentation.
"Many financial institutions are beginning to understand the
potential for AI across the range of their operations, and as they
navigate an internal strategy for implementation and use cases, we
want to provide the broader industry with benchmarks directly from
market research in various areas of AI," said Allison Cerra,
chief marketing officer at Alkami. "The study reveals the more
common applications for AI today and where RCFIs believe AI will
have the biggest impact in banking, both of which can prove useful
to RCFIs benchmarking their own AI progress."
The study also found that a significant majority of financial
institutions remain in the foundational stages of understanding and
implementing AI. For those that have experimented with AI, their
success rates are impressive, with at least 88% of RCFIs saying
their AI initiatives in customer service, data insights, marketing,
and/or security and fraud protection have been mostly
or very successful.
"We are proud to continue our work with Alkami to prepare their
customers with resources that enable them to navigate the latest
innovations and technology," said Jason
Dorsey, president of The Center for Generational Kinetics.
"As the study outlines, a key part of the path forward for RCFIs is
education, and we hope this study encourages banks and credit
unions to delve deeper into AI literacy and adopt a structured and
strategic framework to maximize potential and navigate the inherent
complexities."
This announcement follows the news that Alkami was recently
certified by J.D. Power for "An Outstanding Mobile Banking Platform
Experience1" as a part of its commitment to help
financial institutions usher in the latest technology and
services.
To download the complete AI market study, "The Application and
Consumer Perception of Artificial Intelligence in Banking," please
click here.
1J.D. Power 2024 Mobile App Platform
Certification ProgramSM recognition is based on successful
completion of an audit and exceeding a customer experience
benchmark through a survey of recent servicing interactions. For
more information, visit jdpower.com/awards.
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.
About The Center for Generational Kinetics
The Center
for Generational Kinetics is a global research firm focused on
delivering custom research that uncovers emerging trends, hidden
behavioral drivers, and actionable insights for leaders. The firm
has led more than 120 custom research studies around the world for
global brands and industry pioneers. To learn more, visit
GenHQ.com.
Media Relations Contacts
Vested
alkami@fullyvested.com
Marla Pieton
marla.pieton@alkami.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/alkami-market-study-reveals-differences-in-ai-outlook-between-financial-institutions-and-consumers-302227458.html
SOURCE Alkami Technology, Inc.