‘TechFin’ Alkami Launches Engagement AI Predictive Model for Financial Services

The "first-of-its-kind" model empowers financial institutions to identify account holders who demonstrate behaviors most likely to lead to retention and account growth, and increase their engagement with products, service offerings and digital channels, said the cloud-based digital banking solutions provider for U.S. financial institutions.

Plano-based fintech Alkami Technology Inc. has launched a first-of-its kind Engagement AI Model via its AI Predictive Modeling solution that combines artificial intelligence, machine learning, and Alkami’s proprietary Key Lifestyle Indicators.

The model empowers financial institutions to identify account holders who demonstrate behaviors most likely to lead to retention and account growth, and increase their engagement with products, service offerings, and digital channels, said the cloud-based digital banking solutions provider for financial institutions in the U.S.

“When we looked at the full spectrum of attrition scoring, our research showed that attrition is significantly lower among highly engaged account holders, so we developed a model that not only identifies these highly engaged account holders but also layers in Alkami’s KLIs—labels describing the type of transaction or behavior a customer or member engages in—to best predict which behaviors drive incremental engagement,” Mark Leher, director, product management at Alkami, said in a statement.

Using AI to retain account holders

Alkami said that financial institutions can use an attrition model to identify account holders that have a high risk of leaving, allowing the institution a chance to develop win-back strategies.

The company said that according to its internal research, account holders who score the highest risk for attrition are, on average, 15 times more likely to leave a financial institution than account holders who score as highly engaged.

Alkami said the Engagement AI Model inverts their attrition model so financial institutions can focus their time and budget where it matters most, in retaining and growing their engaged account holders.

“The model assesses the entire universe of a financial institution’s account holders on a daily basis to identify those account holders exhibiting behaviors that have historically led to deeper engagement,” Leher said. “This allows the financial institution to auto-surface highly relevant campaigns that are more effective at driving growth. Not only does this save on account acquisition costs, but it also empowers the financial institution to engage with those who are more likely to take action on a targeted campaign.”

Alkami Technology Inc. said it enables clients to grow confidently, adapt quickly, and build thriving digital communities. It helps clients transform through retail and business banking, digital account opening, payment security, and data analytics and marketing solutions.

TechFin, not FinTech

In April, we told you about how Alkami presented a new concept at its annual Co:lab 2023 conference in Grapevine.

Drawing a distinction from the FinTech industry, Alkami unveiled its “TechFin” concept: “a technology company that builds financial solutions, with Alkami’s end goal to provide the primary digital banking sales and service platform” for financial institutions.

Alkami's new CEO Alex Shootman will take the helm of the fast-growing fintech.

Alkami CEO Alex Shootman

In his kickoff keynote at the event, CEO Alex Shootman said Alkami will deliver this by “focusing investment in three key areas: extending the user experience and reliability of the digital banking application, expanding the capabilities within the Alkami platform, and unleashing the power of data for each of our [financial institutions].”

Alkami Technology was founded in 2009 by Stephen Bohanon, Gary Nelson, and Troy Lindsey with a vision to revolutionize the digital banking landscape. In April 2021, Alkami Technology went public, listing on the NASDAQ under the ticker symbol “ALKT”.  Shootman was named CEO of the cloud-based digital banking solution provider in 2021 after its IPO.

One of Alkami’s strengths has been its ability to integrate its digital bank solutions with a variety of third-party applications and services.

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