Source: The 2023 Alkami Data Telemetry Report: State of the Industry℠, Emerging Financial Institution Opportunities in an Uncertain Economy / “It’s the Economy, Again” page 6-7. In addition to Telemetry data, Alkami fielded a primary market research study* to find the opinions of banking consumers.
Adoption of fintech applications designed to help manage savings and investments peaked to nearly 2.5 percent of users during the pandemic when the government issued stimulus payments. Even post-COVID, the aggregate investment in these accounts is nearly five times what it was before the pandemic.
The 11 fintech applications analyzed were: Acorns, Albert, Betterment, Fundrise, M1 Finance, Masterworks, Robinhood, SoFi, Stash, Webull, and Yieldstreet. 42 percent of consumers wish* they had more analytical tools to track and manage their financial situation, and Alkami’s telemetry data shows increased usage of investing apps to support this finding.
In aggregate, the takeaway for a strategist at the financial institution is that these new investment platforms are a deposit threat. They are offering an experience or investment options that are attractive to consumers.
