Alkami Research: 85% of Consumers Demand High-Quality Digital Banking or Will Switch

Alkami Technology has released its fourth annual national research study, "Tailoring the Banking Experience to Each Generation," highlighting a critical relevance gap for regional and community financial institutions. As digital banking becomes the primary layer for customer retention, understanding how Gen Z, Millennials, Gen X, and Boomers define value is essential for institutions competing against megabanks and fintechs.

What was announced

The study, "Tailoring the Banking Experience to Each Generation," was conducted in partnership with Jason Dorsey and The Center for Generational Kinetics (CGK). It involved 1,500 participants, weighted to the 2020 U.S. Census for age, gender, region, and ethnicity, all of whom are active in digital banking. The research identifies digital banking as the "relationship layer" where financial institutions either secure or lose customer loyalty.

Key metrics from the report reveal that 85% of consumers consider digital banking quality essential when choosing a provider. Furthermore, 31% of respondents have already switched institutions following a poor digital experience. The data highlights distinct generational priorities:

• Generation Z: 57% seek financial education from their primary provider.
• Millennials: 65% are comfortable with AI-enabled experiences for spending and security management.
• Generation X: 91% value phone support and 87% prioritize online virtual assistance.
• Baby Boomers: 92% cite data protection from fraudsters as a top priority.

The report also identifies a "relevance gap" for regional and community institutions. Only 38% of their customers find product recommendations relevant, compared to 50% at major national banks and 51% at online-only providers. Additionally, 51% of all digital banking users are open to AI processing their data if it improves security or financial decision-making. These findings suggest that institutions combining generational insights with account-holder data are best positioned for what the report calls "Anticipatory Banking."

"Consumers are not looking for a one-size-fits-all banking experience. A primary banking relationship is no longer a promise of exclusivity. Consumers may stay with the same bank or credit union for years while spreading their financial activity across providers that better meet specific needs. Financial institutions that use these generational patterns as a starting point, then pair them with account holder data can become more relevant in the moments that shape financial behaviors and stay relevant."

Jason Dorsey, president of The Center for Generational Kinetics.

The companies involved

Alkami Technology, Inc. (Nasdaq: ALKT) is a digital sales and service platform provider based in the United States, focusing on the credit union and regional banking sectors. The company provides a cloud-based platform designed to help financial institutions compete with megabanks and fintechs by offering a more integrated digital experience. Alkami has been a significant fixture in the fintech landscape, with FF News providing coverage of their partnerships and platform updates on 71 previous occasions.

The Center for Generational Kinetics (CGK) is a research firm that specializes in generational trends and behavioral patterns. Led by president Jason Dorsey, a prominent researcher in the field, the organization provides data-driven insights to help companies understand the shifting expectations of Gen Z, Millennials, Gen X, and Baby Boomers. Their partnership with Alkami, now in its fourth year, aims to bridge the gap between demographic data and digital banking strategy. By analyzing how different age groups interact with technology, CGK helps financial institutions move toward models that utilize account-holder-level data to predict consumer needs and grow long-term relationships.

What FF News has reported before

FF News has extensively tracked Alkami’s role in the digital transformation of the credit union sector. Recently, we covered how Raiz FCU Slashes Account Opening Times from Nine Days to Four Minutes with Alkami, demonstrating the platform's impact on operational efficiency. We also reported on Jeanne D'Arc Credit Union Accelerates Digital Transformation with the Alkami Digital Sales & Service Platform, highlighting the ongoing demand for integrated sales and service tools. Furthermore, Alkami’s ecosystem expansion was noted when Southland Credit Union Selects Eltropy Through Partnership with Alkami, showcasing how the provider facilitates third-party integrations to enhance the member experience.

What this means

The findings suggest that the traditional concept of "primary banking" is undergoing a fundamental shift toward fragmented loyalty. For regional and community financial institutions, the 13% relevance gap compared to online-only providers is a significant competitive threat. While these institutions have historically relied on local trust and physical presence, the data confirms that digital experience is now the primary battleground where relationships are won or lost. The industry is moving toward a model where "Anticipatory Banking" is the baseline expectation; institutions that fail to leverage account-holder data to provide personalized, AI-enhanced guidance risk being relegated to secondary utility roles. The pressure is now on smaller players to prove they can match the personalization of megabanks without losing their community identity.