Posted by MeridianLink | October 31, 2023

Protecting Your Financial Institution from Halloween Horrors

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.   

As Halloween approaches, our thoughts often turn to ghosts, ghouls, and things that go bump in the night. But for financial institutions (FIs), there are very real, albeit less supernatural, monsters to contend with. Fintech and big tech competitors, high interest rates, decreasing deposit liquidity, evolving consumer expectations, and industry trends can all haunt the dreams of even the bravest FI professionals.  

Fortunately, like the Ghostbusters of the financial world, MeridianLink® is here to help you ward off these financial phantoms and maintain a strong financial foundation. 

Don’t Get Spooked by Fintech and Big Tech Competitors 

Fintech and big tech competitors lurk like mysterious specters in the shadows. These spectral entities have the power to disrupt the financial industry, offering innovative services and unsettling convenience that can send shivers down the spine of traditional financial institutions. In fact, when it comes to borrower satisfaction fintechs remain an industry leader. 

As consumers continue to seek out faster, easier, and more tailored services, credit unions and community banks must embrace the spirit of innovation and quickly adapt to the changing preferences of consumers. 

Wandering Interest Rates and Disappearing Deposits 

The lifeblood of any financial institution—deposits and liquidity—is continually tested. Interest rates dance like restless spirits, forever changing and unpredictable. The looming specter of low deposit liquidity can cast a dark shadow over an FI’s balance sheet, creating a spine-chilling financial conundrum. FIs find themselves caught in a perpetual battle against these dark forces and traditional means of generating funds and managing cash flows will no longer suffice. 

So how can FIs emerge unscathed from this perilous adventure?  

Bewitching Banking Experiences  

In this age of digital enchantment, FIs must invest in the sorcery of technology to meet these expectations. The convenience of mobile apps, online banking, digital lending, and account opening platforms have become the tools essential for any FI that seeks to thrive, but even still a mere 4% of financial services leaders report that they deliver an excellent consumer experience digitally. 

Here’s the spellbinding truth—personalization is the secret potion for building lasting relationships with consumers. By wielding the magic of technology and data, FIs can conjure tailored, target-specific offers based on individual circumstances. This approach not only grows loyalty but also shows consumers that their needs are not lost in the realm of the unseen. It creates a bond so strong that it directly contradicts the ancient rumors that digitalization in banking and lending results in cold, impersonal transactions that begin and end behind a screen. 

Securing a Wickedly Competitive Future 

Balancing these challenges is no small feat. But fear not, because MeridianLink is here to help. Our solutions empower community banks and credit unions to not just confront but conquer these financial phantoms with data-driven, digital solutions built upon these four pillars:  

  1. Speed: Maximizing digital applications and minimizing human intervention to deliver the best user experience from digital application to loan funding. 
  1. Reach: Bundling third-party data and internal data with AI decisioning to broaden the applicant pool and accelerate origination profitability. 
  1. Demand: Using data-driven personalization to drive new and deeper consumer relationships, increasing engagement and revenue growth. 
  1. Connectivity: Expanding interconnectivity across our MeridianLink® One platform. 

So this Halloween season, who are you going to call to enjoy a financial journey that’s more treat than trick? MeridianLink!  

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