Posted by MeridianLink | August 21, 2023

Financial Services Is at a Crossroads and All Signs Point To Transformation

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the content herein. The opinions expressed in this article are the opinions of the individual author and may not reflect the opinions of MeridianLink, Inc.  

Innovation is the intersection of creativity and motivation. Digital transformation is the intersection of business and technology. In financial services, these two critical concepts meet when leaders are committed to moving beyond industry laggards and fundamentally changing how their financial institution (FI) operates and delivers value to their consumers. And yes, bringing these concepts together truly is a commitment—a commitment to advancing your technology, modernizing all areas of your operations, safeguarding the financial well-being of your accountholders, and securing the future of your financial institution. But even though the stakes are high, only 30% of banks that have made the digital transformation commitment reported a successful implementation of their strategy. The majority fall short of their stated objectives.​ 

Further solidifying the importance of this commitment, the 2023 Jack Henry™ Strategic Priorities Benchmark Study reports that 79% of all financial institutions plan to increase technology spend over the next two years, with most FIs planning to increase investments between 6% and 10%. The study also notes that 95% of all financial institutions plan to enhance their lending capabilities, and there’s a shared priority across both banks and credit unions to focus on growing deposits, growing loans, and improving operational efficiency.  

The evidence above demonstrates FIs are listening to evolving consumer expectations and they’re paying attention to the consequences of not meeting those expectations. In response, banks and credit unions have defined what they’re going to do with an understanding of why they need to do it, and now it’s time to move beyond the conceptual and make this idea a reality. How will you effectively leverage the innovative tools and resources at your fingertips to truly transform your FI’s operations and maximize your return on this significant investment? 

We’re sharing two key coordinates to help your FI advance beyond the existing crossroad.  

You Only Have One Chance To Make a First Impression

It’s all about the experience, and it starts with the first touch. The moment a consumer decides they want to open an account, apply for a loan, move their direct deposit, and trust you with the fruits of their labor, it’s important that you deliver a first experience that’s frictionless and leaves a lasting, positive impression.  

The challenge for banks and credit unions is to promote personalized consumer interactions and automate processes in ways that create the same seamless digital experience your consumers receive when they order food, use a rideshare app, or buy that last-minute gift online with next-day shipping. 

MeridianLink® Opening is designed with that exact experience in mind. It allows consumers to open accounts quickly and efficiently—in under five minutes—offering your consumers ‘round-the-clock services with speed and convenience. The fully digital end-to-end experience integrates with a variety of fraud-mitigating identity verification tools that support FIs in securely reaching people who may traditionally not have access to their institution, which can ultimately lead to deposit growth and new account acquisition—two of the driving forces for your digital transformation.    

Next-Gen Lending for the Next-Gen Borrower 

It’s no secret that millennial and Gen-Z consumers prefer to manage their finances digitally. In fact, the latest Chase Digital Banking Attitudes Study found that 99% of Gen Z and 98% of millennials use a mobile banking app for a wide range of tasks.  

When it comes to consumer lending, the J.D. Power 2023 U.S. Consumer Lending Satisfaction Study reports that fintech lenders have seen the sharpest rate of improvement in overall borrower satisfaction because of their focus on delivering a streamlined digital loan process. And based on the 95% of financial institutions prioritizing enhanced lending capabilities, it’s clear banks and credit unions are ready to invest in their future relevance as a lender.   

MeridianLink® Consumer sets the standard for the next generation of digital lending. Our digital loan origination solution is designed to fit the needs of your unique organization, while helping you exceed the expectations of your consumers and compete with fintech lenders. With flexible workflow configuration options, hundreds of third-party integrations, a robust pricing engine, automated decisioning, built-in cross-sell, and full loan product suite support, you can build an agile, dynamic loan operation that enables your team to spend more time on relationship-building tasks and less time on manual workflows. 

And because our products are seamlessly integrated into one end-to-end digital solution, you can improve your organization’s account opening, application processing, lending automation, and cross-selling all at once—empowering your FI to meet consumers at every step of their financial journey. 

Making the Change 

Now that you’ve arrived at the crossroads, will your FI continue using the outdated, crumpled roadmap stuffed in the back of your car’s glove compartment? Or will you trade in your legacy coordinates for the data-driven tools of the digital age to move forward expeditiously? MeridianLink® is committed to connecting you to better by helping your FI achieve its best results, accelerate your digital transformation, and deliver the best-in-class experience your consumers deserve—and expect. It’s time to chart a new course with MeridianLink.  

Want to learn more? Check out our recent blog post or contact a friendly representative to discover how MeridianLink solutions can help your FI deepen consumer relationships, boost revenue, and increase lending portfolio volume. 

Similar Posts