PLANO, Texas–Mid-size banks and credit unions more than doubled their investments in digital transformation during 2022 to nearly $425,000 per $1 billion in assets, up from an average of just over $200,000 per $1 billion in assets for fiscal 2021, according to a new report by Cornerstone Advisors and commissioned by Alkami Technologies.
The 2023 Digital Banking Performance Metrics report draws on data from U.S. regional and community financial institutions with an average asset size of $4.4 billion, found:
- Mobile deposit popularity is surging, with 52% of active digital banking users depositing checks via mobile devices in 2022, up from 37% the year before.
- Loan applications are a big digital banking growth area, with nearly half (47%) of all loan applications in 2022 coming via digital channels, up from just 36% in 2021, Alkami reported.
- Peer-to-Peer (P2P) payments are seeing increased adoption with active P2P payment users as a percentage of digital banking users doubling to 25% from 12%.
- Mobile payments are fragmented, with 70% using more than one provider, and 49% using three or more. Three out of four Gen Z and Millennial consumers are using PayPal, the report found.
Outperforming Peers
Overall, according to Alkami 69% of checking account holders are now active digital banking users, up from 67% in 2021. Meanwhile, an average 56% of checking account holders at surveyed institutions actively accessed mobile banking options in 2022.
“The banks and credit unions in this report with the best overall financial performance consistently outperform their peer financial institutions on a wide range of digital banking metrics,” said Ron Shevlin, Cornerstone’s chief research officer. “The correlation is strong enough to suggest that institutions with improved digital banking performance are likely to improve overall business performance.”
The research shows the highest-performing financial institutions, accounting for 22% of the financial institutions surveyed, are those most aggressively investing in emerging technologies, according to Cornerstone and Alkami.
To download the full report, click here.
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