Business banking continues to evolve as digital banking, data analytics, and security concerns reshape financial institutions' strategies. For the third consecutive year, Alkami’s Business Banking team has identified the top five trends reflecting both emerging innovations and the operational challenges banks and credit unions face in business banking. In January, banking leaders from Landmark Credit Union, Mascoma Bank, and Mountain America Credit Union gathered to discuss the trends and share their insights on how these trends are impacting their financial institutions.
Trend 1: Modernizing processes through digital innovation
Financial institutions are accelerating the growth of their digital capabilities and toolsets in order to streamline operations and improve user experiences. Artificial intelligence (AI), automation, and cloud-based solutions are driving this shift. Financial institutions must ensure their tech stacks allow seamless business banking experiences while maintaining compliance and security.
Key takeaways:
- Mascoma Bank is investing in AI and data analytics while ensuring proper governance and responsible adoption. The bank has upskilled its innovation team, created a high-level AI policy, and built a roadmap for leveraging data analytics.
- Landmark Credit Union is expanding conversational banking with chatbots and enhancing digital onboarding for business accounts. The goal is to improve awareness of business banking products and simplify the digital account opening process.
- Mountain America Credit Union is leveraging fintech partnerships to automate business account opening and streamline onboarding while maintaining strong fraud prevention measures.
What’s needed to support this trend at your credit union?
- AI-driven automation for onboarding and account servicing
- Exploring cloud-based digital banking platforms which provide flexibility, scalability, and a wide range of third-party integrations
- Marketing automation to provide personalized product recommendations
- Digital account opening to quickly move from consideration to purchase to repeat usage
Trend 2: Leveraging data analytics for personalization and growth
Using data strategically allows banks and credit unions to proactively meet the needs of business members, predict financial behaviors, and offer tailored solutions. Financial institutions must move beyond static reporting and adopt real-time analytics to enhance business banking personalization and engagement.
Key takeaways:
- Mascoma Bank is focusing on using data analytics to proactively support customers rather than reacting to their needs. The bank has built a cross-functional team of data analysts, tech specialists, and marketing professionals to drive personalization.
- Mountain America Credit Union is using data analytics to identify cash fluctuations in business accounts, proactively offer solutions such as lines of credit, and track business member interactions with competitors.
- Landmark Credit Union is leveraging data analytics to reduce risk and personalize outreach, particularly in treasury management, where they educate members on underutilized services.
What’s needed to support this trend at your credit union?
- AI-powered data analytics tools to extract actionable insights
- Integration of business banking solutions with accounting platforms
- Proactive outreach strategies based on account holder behavior patterns
Trend 3: Reducing risk and preventing fraud in digital banking
With fraud risks escalating, financial institutions must take a proactive approach to security, incorporating advanced fraud detection methods and educating business members. Cyber threats are growing, and banking providers must integrate security at every level of business banking, from account opening to transaction monitoring.
Key takeaways:
- Landmark Credit Union is leveraging behavioral analytics to detect anomalies in online banking transactions and prevent fraud before it happens.
- Mountain America Credit Union has transitioned away from email-based multi-factor authentication (MFA) to text-based and authenticator app-based MFA to enhance security and reduce fraud risks. The credit union also uses check sequence monitoring to flag unusual activity.
- Mascoma Bank is prioritizing fraud prevention education for business customers , recognizing that many businesses lack awareness of risks around data breaches and payment fraud.
What’s needed to support this trend at your credit union?
- AI-driven fraud detection and behavioral biometrics
- Multi-layered authentication security for online banking and transactions
- Business account holder education on fraud prevention tactics
Trend 4: Building profitable business relationships
Financial institutions must focus on fostering long-term, profitable relationships with business account holders by offering competitive services and building trust. By combining digital capabilities with relationship-driven banking, financial services professionals have the opportunity to create sustainable profitability in business banking.
Key takeaways:
- Mountain America Credit Union views profitability not just in financial terms but in trust and engagement. By offering the best products and rates, they aim to become a trusted long-term partner for businesses.
- Mascoma Bank is shifting its approach from evaluating profitability at the product level to assessing it at the customer relationship level. This shift allows for more meaningful insights into customer engagement and growth opportunities.
- Landmark Credit Union is leveraging fintech partnerships to enhance business banking offerings while maintaining a strong focus on personal service.
What’s needed to support this trend at your credit union?
- Relationship-based pricing models to encourage deeper engagement
- Digital tools that enable self-service and relationship tracking
- Fintech partnerships to offer competitive business banking services
Trend 5: Centralizing cash and managing liquidity for business clients
Businesses increasingly demand automated cash management tools to optimize their liquidity strategies. Liquidity management is critical for businesses, and financial institutions that offer efficient cash flow solutions will deepen relationships with their members. Banks and credit unions must evolve their cash management services to compete with larger financial institutions and fintechs offering real-time solutions.
Key takeaways:
- Landmark Credit Union provides loan sweeps and investment sweeps to help members maximize cash utilization and reduce unnecessary interest payments.
- Mountain America Credit Union is focused on real-time transaction capabilities and seamless integration with accounting systems like QuickBooks to improve business members’ financial management.
What’s needed to support this trend at your credit union?
- Automated cash management solutions integrated with digital banking platforms
- Same-day automated clearing house (ACH) and external transfer capabilities
- Customizable treasury management services for businesses of all sizes
Final thoughts: Strategies for credit unions and banks to succeed in 2025
As business banking evolves, the institutions that serve them must embrace digital innovation, leverage data analytics, enhance security, and build deeper relationships with business members. To stay ahead, banks and credit unions should work towards:
- investing in AI and automation to enhance digital banking experiences;
- using real-time data analytics and marketing automation to personalize business banking solutions;
- implementing multi-layered security to prevent fraud in online banking;
- training and deploying on old-school customer service tactics and new relationship-driven strategies to drive profitability; and
- offering excellent cash and liquidity management solutions to attract and retain business members.
Discover how digital innovation can transform your credit union’s business banking services here.
