More than two-thirds of Americans say they
have experienced a significant impact on their standard of
living
PLANO,
Texas, June 26, 2024 /PRNewswire/ -- Alkami
Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based
digital banking solutions provider for financial institutions
in the U.S., announced today the release of its latest research,
the 2024 Alkami Telemetry Data Report. The report examines the high
interest rate environment and its impact on consumers and financial
institutions. The transaction data was compiled from an aggregated
panel of more than 2.5 million account holders. The data was
supplemented by an Alkami-commissioned research study, conducted in
partnership with The Center for Generational Kinetics that surveyed
1,500 digital banking consumers in the U.S., to assess how the
current macroeconomic environment has impacted attitudes and
behaviors of the different generations.
As U.S. consumers are facing a credit reliance with rising
levels of debt reaching over $17T by the end of Q1 2024, the report
highlights trends relating to common consumer deposits, and credit
products like mortgages, home equity lines of credit (HELOCs), auto
loans, credit cards and buy now pay later (BNPL). The findings
examine the implications for deposit, loan, and payment products at
regional and community banks and credit unions. Key findings
regarding these products for financial institutions include:
- Sixty-seven percent of digital banking Americans say the
rising interest rate environment has had a significant impact on
their standard of living and 59% are living paycheck to
paycheck.
- Mortgage originations have been on a steep decline, with
72.5% fewer originations in December
2023 compared with December
2020. The amount of mortgage loan principal, a helpful proxy
for trends in home prices, increased by 42% from December 2020 to December
2023.
- The average drawn balance on a HELOC rose by
31.7% from December 2021 to
December 2023.
- The average new car buyer in December
2023 is paying $323, or
57.1% more per month for an auto loan than the average new
car buyer from December 2019.
- The number of CD openings in Q1 2023 was 10.8x higher
than the number of CD openings in Q4 2021. By the end of 2024,
87.7% of the CD balances held at the end of Q4 2023 will
mature.
- The average credit card payment has been increasing
since 2020, reaching $2,376 by
2023, a 19% increase over pre-pandemic levels.
- There were 5.17x more BNPL users in 2023 than in
2019.
"Through this research, and Alkami's other tools like the
Digital Sales & Service Maturity Model Assessment, banks and
credit unions can not only assist their account holders in
mitigating the effects of high interest rates to strengthen loyalty
and provide the best digital banking experience, but also can be
informed on where their institution may lie on the competitive
curve," said Mark Leher, director,
product management at Alkami.
To read the full 2024 Alkami Telemetry Data Report, visit here.
Financial institutions can take action now to assess their
competitive position and digital maturity level by taking Alkami's
Digital Sales & Service Maturity Model Assessment.
About Alkami
Alkami Technology, Inc. is a leading cloud-based digital
banking solutions provider for financial institutions in
the United States that enables
clients to grow confidently, adapt quickly, and build thriving
digital communities. Alkami helps clients transform through retail
and commercial banking, digital account opening, and data and
marketing solutions. To learn more, visit www.alkami.com.
About The Center for Generational Kinetics
The Center
for Generational Kinetics is a global research firm focused on
delivering custom research that uncovers emerging trends, hidden
behavioral drivers, and actionable insights for leaders. The firm
has led more than 120 custom research studies around the world for
global brands and industry pioneers. To learn more, visit
GenHQ.com.
Media Relations Contacts
Vested
alkami@fullyvested.com
Marla Pieton
marla.pieton@alkami.com
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SOURCE Alkami Technology, Inc.