Embracing digital transformation: Key trends in consumer banking solutions

Winning the modern consumer with innovative retail banking solutions

Over the next ten years, the United States will experience an immense transfer of wealth from older Americans to largely Millennials, Generation Z (Gen Z), and Generation X (Gen X). $16 trillion to be exact. Wouldn’t you want your financial institution to retain or acquire a piece of that pie?

These consumers are about to inherit the greatest transfer of intergenerational wealth, which is a huge opportunity for financial institutions to capture deposits and establish life-long relationships. But winning trust and loyalty comes with diligence and commitment to meet the expectations of these generations. According to Alkami’s primary research, 48% of Gen Zs and Millennials have had such a bad digital experience with a financial provider that they opened a new account with another. Meaning if account holders are dissatisfied with your digital experience, they will look elsewhere, most likely without closing their existing account – opening the door to silent attrition.

Many consumers leverage a multitude of financial relationships to manage their finances. They turn to different providers to deposit their paycheck, manage their budget, check their credit score, invest, make person-to-person (P2P) transfers, monitor their home value, purchase via buy now pay later, and more. With each provider offering a niche solution, consumers have grown accustomed to a network of providers. However, each of these disparate relationships is targeting your hard-earned account holder with enticing competitive offers. Rather than letting millennials and Gen Z leave your institution, financial institutions must deploy a strategy to prevent “ghosting.”

To inform retention efforts, The Financial Brand recommends that banks and credit unions:


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