BROOKFIELD, Wis.–The number of digital banking users continues to grow, delivering significant benefits to financial institutions that offer these services, according to a “digital engagement intensity study” released by America First Credit Union and Fiserv.
The study found the average year-over-year organic user growth of 9% in digital banking, “demonstrating the strong ongoing demand for these services,” Fiserv said.
“The world is experiencing a dramatic shift in digital expectations, creating pressure for banks and credit unions to offer new and differentiated capabilities, and integrate them seamlessly,” said Whitney Stewart Russell, president of Digital Channels at Fiserv, in a statement. “Consumers have a high degree of trust in the ability of financial institutions to securely hold and move their money, yet consumers have shown they are willing to make tradeoffs when a financial institution can’t meet their needs. As we move past the pandemic and people become more selective about the digital services they use, we’ll see the trust factor rise in importance. If financial institutions offer the services consumers want, consumers will choose to do business with them.”
Delivering Value
According to Fiserv, digital banking usage has been shown to drive customer loyalty and provide a host of other benefits.
Fiserv and America First Credit Union said they embarked on the digital engagement intensity study to “understand how members engaged with the institution’s digital banking products. Across the board, the study found that digital banking users deliver higher value to AFCU, with a strong correlation between digital engagement and net profit, product holdings, balance growth and transaction activity.
“During the study period, net profit for digitally engaged members was 29% higher than for non-digitally engaged members,” the organizations said. “Digitally engaged members also had more deposit and loan products with AFCU and 48% higher deposit balances.”
Meeting Evolving Expectations
In releasing the findings, Fiserv reported it is accelerating digital journeys to enable financial institutions to meet evolving consumer expectations.
“Experience Digital from Fiserv, powered by open banking APIs, unites the best digital and fintech journeys to accelerate financial institutions’ digital roadmaps and meet consumer expectations through a simple, seamlessly connected digital ecosystem,” the company said.
Fiserv said it offers two suites—Configure and Create—that give financial institutions either a turnkey or customizable approach to meet their unique needs. Fiserv said it also provides banks and credit unions with complementary groups of data-rich tools that are designed to grow customer acquisition and wallet share, increase digital engagement and lower costs through increased efficiencies.
“With our digital banking platform, we’re getting a top-notch digital banking solution in an ASP environment. The integration is seamless because they are all Fiserv products. Plus, Fiserv is focused on keeping the platform strong and robust,” said Kim Ervin, President and CEO at Staley Credit Union, which uses the Configure suite.
The Digital Journey
In addition, Fiserv said it offers CardHub, which it said is a next generation digital solution that enables a single, connected card management experience to help financial institutions meet cardholders’ rising digital expectations with features like advanced alerts and controls, spend insights, and card on file management.
“In the past 18 months, CardHub has experienced significant growth, and banks and credit unions that have implemented the solution have on average seen four times more growth in consumer adoption of CardHub over their previous digital card management solution,” Fiserv said.
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