Posted by MeridianLink | June 7, 2023

Consumer Expectations Have Transformed

How Is Your FI Keeping Up With This Digital Reality?

It’s time to look beyond traditional banking relationships and make room for innovation. The digital-first paradigm is industry agnostic, and banking is no exception. From online shopping and entertainment to travel and grocery shopping, on-demand, automated, and personalized digital experiences are here to stay.  

This digital reality has inspired a new wave of expectations for consumers, paving the way for financial institutions (FIs) to examine new ways to show up for their consumers and stand out from competitors. Coupled with the right tools, the digital domain opens a new world of opportunity for FIs to expand their reach and design better consumer experiences.  

Expanded Reach of Engagement   

Consider that four in five consumers prefer to manage their finances digitally. For millennials, those numbers are even more astounding: 99% of Gen Z and 98% of millennials use mobile banking apps for a variety of financial tasks. That’s a clear opportunity for financial institutions to differentiate from competitors and boost consumer engagement with digital solutions that cater to life’s important financial moments.  

Each generation has unique needs and “firsts”whether it’s opening a checking account, applying for a credit card, buying a home, saving, investing, buying a car—and all these moments represent an opportunity for engagement.  

In a world where nearly everything is available at the click of a button, consumers expect the same level of convenience from their financial institution. Digital innovation empowers FIs to better understand what consumers need and create efficient, accessible, convenient experiences tailored to each financial situation. 

The result? Deeper consumer relationships fostered by data insights and automated digital solutions to promote financial well-being at every stage of life.  

Better Consumer Experiences    

Now that you’ve reached your consumers, how do you create a best-in-class experience?  

FIs are grappling with the shifting landscape of consumer expectations—one where consumer loyalty is declining. According to a J.D. Power survey, 27% of accountholders are looking to leave their financial institution, and 26% of responders moved money from their primary bank in the previous 30 days, moving an average of 35% of total balances. 

In other words, more than a quarter of consumers are on the hunt for better experienceswhether that’s lower fees and loan rates, better rewards and cash-back offers, higher interest rates on savings accounts, or a more streamlined way to manage their finances. Banking in the digital world makes it easier than ever for consumers to find the best deal for their needs, fast. 

FIs can use this trend in their favor. It’s an opportunity to connect to consumers in new ways with timely, relevant, and personalized offers that can help meet their unique financial needs. This creates a symbiotic relationship leading to:  

  • Increased share of wallet 
  • Pipeline optimization and increased loan growth 
  • Increased deposit growth and liquidity
  • Improved account opening and loan origination ratios and processing times
  • Enhanced engagement and increased revenue from new and existing relationships  

The MeridianLink Advantage    

We understand the importance of optimizing digital engagement. That’s why MeridianLink® One is intentionally designed to drive FI growth through integrated digital experiences that attract new consumers and extend their financial relationship over time.  

With our growing platform of data-driven solutions, we help our customers connect with their consumers at every step of the financial journey by focusing on speed, reach, and demand:  

Speed: Maximizing digital applications and minimizing human intervention to deliver the best user experience from digital application to loan funding 

Reach: Bundling third-party data and internal data with AI decisioning broadens the applicant pool and accelerates origination process profitability 

Demand: Data-driven personalization drives new and deeper consumer relationships, increasing engagement and revenue growth  

No matter the economic situation, consumers expect support from their financial institutions, and FIs need to be equipped to provide the services that meet the unique needs of their consumers.  

Learn more data-driven strategies to help grow deposits and increase consumer loyalty with our eBook. 

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