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 fintech content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
Four in ten retail consumers surveyed by McKinsey said they plan to increase their use of fintech products. This reality is one of the driving forces behind fintech’s projected revenue surge to over $400 billion by 2028. To put it in perspective, that’s a 15% annual growth rate—three times faster than the overall banking industry.
Now, consider how this could be affecting your institution:
1. New account holders may be turning to fintechs for their primary financial needs.
2. Existing account holders may be diversifying, using fintechs as secondary providers.
3. Some may even be shifting entirely to fintechs, taking deposits and lending opportunities with them.
The good news? A remedy is within reach. By identifying the key factors impacting your performance and making strategic shifts, you can reclaim market share and turn declining deposits and applications into opportunities for growth and renewed consumer loyalty.
Identifying Root Causes of Declines
Sustainable growth isn’t a lucky break or the result of chasing trends—it’s a science. Your financial institution operates on essential elements such as strategy, technology, and actionable insights. When these elements are aligned and functioning at their best, they come together to drive results.
But what happens when they aren’t performing as they should? Shrinking deposits, fewer loan applications, or disengaged account holders could be symptoms of underlying issues. These are warning signs that shouldn’t be ignored.
In this blog, we’ll explore five symptoms that could be contributing to a decline in deposit and application volumes, help you analyze the underlying causes, and prescribe a path forward to help you prioritize your efforts and embrace a culture of continuous improvement.
Symptom 1: Lack of Consumer Connection
Diagnosis: Not delivering a fully integrated application experience across all products and services can create significant friction in your processes. This friction can frustrate consumers, pushing them toward the simplicity and convenience of fintechs.
Treatment Plan: Leverage an omnichannel digital platform with data-driven workflows to ensure a consistent experience and seamless support across all product offerings and touchpoints.
Possible Side Effects: With a unified solution, consumers can complete applications from start to finish on their terms, while you anticipate their needs and streamline communication. Expect greater efficiency, improved staff collaboration, and stronger consumer retention as you offer a seamless, personalized journey that keeps account holders engaged across every interaction.
Symptom 2: Slow Decisioning
Diagnosis: Slow decisioning is hurting your application experience. When consumers are ready to act, they are looking for quick, responsive service. If your processes don’t deliver fast, smart decisions, you risk losing out to competitors who can meet these demands instantly.
Treatment Plan: Adopt automated decisioning to accelerate processes and maintain a seamless consumer experience.
Possible Side Effects: With real-time data analysis integrated into your decisioning models, you’ll be able to make faster, more informed decisions. By reducing the time spent reviewing every application, your team can be freed up to focus on more complex cases. Expect improvements in consumer satisfaction, increased staff productivity, and a healthier portfolio.
Symptom 3: Underutilized Account Relationships
Diagnosis: If you’re not actively nurturing existing relationships, you may be leaving revenue on the table. While you’re attracting new accounts, there’s untapped potential in expanding your share of wallet with current account holders.
Treatment Plan: Implement a consumer engagement strategy powered by data-driven insights and automated marketing tools.
Possible Side Effects: With data-driven insights guiding your efforts, you can uncover more opportunities for cross-selling and upselling, and even see better conversions. Expect more engaged, loyal account holders, reduced attrition, and increased revenue per account as you meet their needs at every stage.
Symptom 4: Operational Bottlenecks
Diagnosis: Friction points are stalling your institution’s growth. Areas where systems slow down, or processes become cumbersome can silently drain your team’s productivity and lead to frustrating consumer experiences. If you don’t identify and address these, they’ll continue to impact your bottom line.
Treatment Plan: Identify bottlenecks in your account opening and loan origination processes and use automation to streamline them.
Possible Side Effects: Automating repetitive or time-consuming processes like loan approvals, account opening and funding, compliance checks, fraud detection, data entry, and document processing can enhance productivity, reduce errors, and create a more efficient and accurate operation. Expect to see greater satisfaction, lower costs, quicker responses, a more effective team, and a seamless experience across all channels.
Symptom 5: Data Blind Spots
Diagnosis: You likely have access to an abundance of data, but without easy access and a clear strategy for utilizing it, you’re missing out on its benefits. This can make it difficult to personalize offerings, anticipate consumer needs, and adapt quickly to market changes—leaving you vulnerable to competitors who are more agile in their use of data.
Treatment Plan: Invest in a data-driven platform that consolidates and analyzes consumer data across all touchpoints.
Possible Side Effects: A centralized, data-driven platform creates a single source of truth for your institution, eliminating the trap of data silos and fragmented systems. By using this intelligence, you’ll find yourself making faster, more informed decisions and anticipating consumer needs. Expect enhanced consumer interactions, stronger relationships, and an edge in staying ahead of market trends.
Your Growth Prognosis

Your institution needs more than just a quick fix—it needs a digitally progressive approach. Each of the five essential elements we’ve discussed forms a vital part of your institution’s growth trajectory. And together, they align to breathe new life into declining deposits, streamline sluggish applications, and create a seamless consumer experience. But revitalizing growth isn’t an overnight shift—it’s more like a lifestyle change. With the right steps mapped out and prioritized, you can steadily improve operational efficiency, enhance consumer satisfaction, and fuel long-term, sustainable growth.
Ready for a wellness check?
Take our Digital Progression Assessment to diagnose your strengths, uncover opportunities, and map out your transformation journey.