Cornerstone Advisors just published the 6th edition of the Digital Banking Performance Metrics report, commissioned by Alkami Technology. Now in its 6th edition, The study explores self-reported operational metrics from America’s banks and credit unions ranging in asset size from $300M to $46B.
Ron Shevlin, Chief Research Officer at Cornerstone Advisors came to some tough conclusions after analyzing the data:
👉 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗿𝗲𝗮𝗰𝗵𝗶𝗻𝗴 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗯𝗮𝗻𝗸𝗶𝗻𝗴 𝗽𝗮𝗿𝗶𝘁𝘆 (𝘁𝗼 𝗮 𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝗲𝘅𝘁𝗲𝗻𝘁). When we first started the series in 2020, we posed the question: Do high-performing financial institutions excel in digital banking? The answer then was a definite “yes.”
The gap between the high performers, the middle of the pack institutions, and the low performers has been closing ever since, however. To the point that we didn’t report the digital metrics by performance category this year.
Does that mean that digital performance no longer influences or impacts overall bottom line results? That would be the easy conclusion, but it’s not one we’re buying into. Instead, digital is impacting bottom-line results in ways that aren’t reflected in the set of metrics we’re capturing.
👉 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗮𝗿𝗲𝗻’𝘁 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝗿𝗲𝗽𝗹𝗮𝗰𝗲𝗱. Our What’s Going On in Banking study tracks the “deployed-to-planned” ratio by dividing the % of institutions that 𝘢𝘤𝘵𝘶𝘢𝘭𝘭𝘺 selected a new or replacement system by the % that 𝘱𝘭𝘢𝘯𝘯𝘦𝘥 to select a new or replacement system in a given year. A low ratio means the industry isn’t replacing applications at the rate at which it planned to.
Among banks, none of the six consumer digital platforms averaged a deployed-to-planned ratio of 100 or higher. Among credit unions, just two of the six consumer digital platforms averaged a deployed-to-planned ratio of 100 or higher over a three-year average. The low ratio for consumer digital account opening, particularly among credit unions, is a cause for concern.
👉 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆-𝗯𝗮𝘀𝗲𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 𝗵𝗮𝘃𝗲 𝗮 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗽𝗿𝗼𝗯𝗹𝗲𝗺. Trends in new checking and payment account openings in the US aren’t good news for midsize FIs. Community banks and credit unions combined only captured 9% of new accounts opened in 2024.
Why are the digital banks and fintechs dominating? It’s not just digital account opening—it’s product design (or, more specifically, cash). Fintechs like Chime, Dave, and MoneyLion offer new customers a $200 to $300 “line of credit” when they open a new account. Open a new checking account and a brokerage account at JPMorgan Chase, and you get $900. That’s hard for community- based FIs to compete with.
More details here: The 2025 Digital Banking Performance Metrics Report
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
