From Data to AI to Security, Alkami Report Investigates FI Digital Maturity Rates

By W.B. King

Among takeaways from Alkami’s 2025 Digital Banking Report – Digital Sales and Service Maturity Model – is that the most mature financial institutions (FIs) report up to five times the average annual revenue growth of their “less digitally evolved” counterparts.

“Our 2025 analysis has uncovered emerging dimensions of digital maturity that were not as prominent in our initial research. Specifically, we’ve identified significant differences in how organizations across the maturity spectrum approach fraud prevention and cybersecurity, prioritize employee digital experiences, and leverage data capabilities,” noted report author Jim Marous, CEO of Digital Banking Report and host of the Alkami-sponsored FIsionaries Podcast. “These elements have evolved from secondary considerations to critical components of digital banking excellence, reflecting the industry’s growing recognition that true digital maturity extends beyond consumer-facing applications to encompass the entire banking ecosystem.”

A collaborative effort between Alkami, Digital Banking Report and Emerald Research Group, Marous said findings were built upon the foundational insights established in its 2024 Report that investigated four digital maturity segments: Patiently Exploring, Innovation-Ready, Digital-Forward, and Data-First.

“Our research continues to challenge the assumption that organizational size determines digital sophistication. Instead, we find that leadership commitment and cultural alignment are the most reliable predictors of digital maturity, with institutions of all asset sizes represented across the maturity spectrum,” he continued. “This democratization of digital capability highlights the opportunity for financial institutions of every size to compete effectively in the digital arena, provided they embrace the strategic mindset and organizational culture necessary to meet the evolving expectations of today’s digital consumer.”

In total, 202 digital banking decision makers from retail banking FIs with more than $200 million in assets were polled. Respondents were between 21 and 75 years old, employed full-time, and influence digital banking platform decisions at their FI.

Understanding Culture, Strategy, and Technology

Alkami CMO Allison Cerra said the purpose of the joint survey was to better understand how FIs combine culture, strategy, and technology to establish digital maturity as a competitive advantage. “The same cohorts from last year’s report remain unchanged, and so do the key findings: The most digitally mature institutions continue to report significantly higher revenue growth — and institutional size still isn’t the sole deciding factor for where an organization lands on the curve,” she noted.

Cerra also shared three critical takeaways employed by successful FIs:

• Security and fraud: Advanced institutions take noticeably different approaches —not only from their peers, but also from one another.

• Employee experience: Digital leaders are expanding the definition of “user experience” to include employees.

• Artificial intelligence (AI) and data maturity: Digitally mature institutions are widening their lead with AI initiatives and are already tackling more complex data challenges — far ahead of the curve.

  
  

The report also found that while larger FIs often make more digital progress, research findings are nuanced. “Specifically, one-third of the most mature institutions have less than $500 million in assets, while 13% of the least mature have more than $5 billion. By understanding the principles these overachievers and underperformers apply in culture, strategy, and technology, other institutions can study the playbook for their own potential success.”

Defining Digital Maturity

Not unlike nebulous terms such as “open banking” or “embedded finance,” the report notes that “digital maturity” is an evolving segment that in recent years has expanded beyond an initial focus on modern technologies, channel shifts, and mobile interfaces.

“We found that fraud protection, employee experiences, and data utilization are reshaping our understanding of what constitutes a truly digitally mature financial institution,” Marous noted. “Digital maturity now reflects an organization’s ability to leverage technology to transform all aspects of its operations, culture, and value proposition.”

This shift in perception, he added, includes the following:

• Creating seamless omnichannel experiences.

• Deploying advanced analytics to inform decision making.

• Automating back-office processes.

• Building agile, technology-enabled organizational structures.

• Fostering a culture of continuous innovation.

  
  

While Data-First FIs would seem clear leaders in all digital applications, Digital-Forward FIs purport the best fraud prevention rates, the survey found. Seventy-one percent implement destination account monitoring (versus 64% for Data-First). Nearly 100% have universal adoption of card freezing and blocking tools, 99% provide fraud prevention tips and training, 90% offer real-time fraud alerts and 70% maintain 24/7 fraud hot lines.

“Data-First organizations lag in several key fraud prevention measures despite their technical sophistication. Their primary differentiator appears to be in offering consumer incentives for fraud prevention actions (40%), a strategy not widely adopted by other segments,” the Report noted. “This suggests a philosophical approach that partially shares responsibility with consumers — one that may prove controversial in an era when consumers increasingly expect institutional protection or prescient given many fraud vectors rely on consumer behavior as the weakest link in the security chain.”

When it came to cybersecurity, Digital-Forward FIs excelled in authentication (92% one-time password (OTP) adoption for consumers, 81% for employees). Data-First institutions lead in advanced approaches like passwordless authentication (40%) and consumer security incentive (33%).

“Given the inherent complexities in defending their institution and consumers from myriad fraud and cybersecurity attack vectors, the data is instructive in revealing where the most advanced institutions are applying investments and focus, particularly when considering the most mature cohort, in this case, the Digital-forward segment,” the report noted.

AI Leadership

According to the report, Data-First FIs have higher and more distinctive generative AI adoptions rates, signaling a broader understanding of evolving digital philosophy.

“Data-First organizations demonstrate decisive leadership, with 42% having AI deployed at some level across their organization. Their approach shows confidence and strategic clarity, as no institutions reject generative AI outright,” the report stated. “This comprehensive implementation mirrors their revenue-focused strategy and sophisticated data infrastructure, enabling them to move quickly on emerging technologies.”

Digital-Forward FIs are committed to AI initiatives but are more cautious, opting for exploratory programs (52% piloting) but have limited full implementation (19%). “This pattern aligns with their security-minded orientation — they recognize generative AI’s potential but pursue implementation methodically, likely considering security and compliance implications carefully,” the report continued. “Their exploration-heavy strategy suggests they’re laying the groundwork for future expansion rather than seeking immediate deployment.”

In what was deemed a survey surprise, “Patiently-Exploring” FIs, despite their overall lower digital maturity, demonstrated relatively high initial generative AI adoption (26% with some implementation). Whereas “Innovation-Ready” organizations demonstrated “transitional hesitation.” Forty percent said they were open to AI “but don’t know where to start.”

Looking forward, Marous said FIs, regardless of respective digital maturity, have the best chance of success when determining cross-departmental strategies simultaneously—from account holder experience, security, employee enablement, and data utilization.

“Those that fail to address their segment-specific limitations risk finding themselves increasingly disadvantaged in an industry where digital capabilities are rapidly becoming a primary determinant of competitive success,” he said.