Credit union continues to bolster its members' digital banking experiencePLANO, Texas, July 2, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced that Mountain America Credit Union (MACU), a top credit union based in Utah, has extended its partnership with Alkami for five more years continuing to leverage the TechFin's digital banking platform and Data & Marketing Solutions.S ...

Core Insights - The 2024 Alkami Telemetry Data Report reveals significant impacts of the high interest rate environment on U.S. consumers and financial institutions, with over two-thirds of Americans reporting a decline in their standard of living [1][2]. Consumer Trends - 67% of digital banking Americans indicate that rising interest rates have significantly affected their standard of living, and 59% are living paycheck to paycheck [2]. - Mortgage originations have decreased sharply, with a 72.5% decline in December 2023 compared to December 2020, while mortgage loan principal has increased by 42% during the same period [2]. - The average drawn balance on Home Equity Lines of Credit (HELOCs) rose by 31.7% from December 2021 to December 2023 [2]. - New car buyers in December 2023 are paying $323 more per month for auto loans, a 57.1% increase compared to December 2019 [2]. - The number of Certificate of Deposit (CD) openings in Q1 2023 was 10.8 times higher than in Q4 2021, with 87.7% of CD balances maturing by the end of 2024 [2]. - Average credit card payments have risen to $2,376 in 2023, marking a 19% increase over pre-pandemic levels [2]. - There were 5.17 times more Buy Now Pay Later (BNPL) users in 2023 compared to 2019 [2]. Implications for Financial Institutions - The report highlights trends in consumer deposits and credit products, emphasizing the need for regional and community banks and credit unions to adapt to changing consumer behaviors [2]. - Financial institutions can leverage Alkami's tools, such as the Digital Sales & Service Maturity Model Assessment, to enhance customer loyalty and improve digital banking experiences [3].

Video campaign demonstrates the role financial institutions play in account holders' financial journeys PLANO, Texas, June 12, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., announced it's releasing a video campaign highlighting the importance of community financial institutions in the daily lives of their account holders and members. The campaign was developed in partnership with Northw ...

Core Insights - Alkami Technology, Inc. has reported a 76.5% increase in new contracts for its Data & Marketing Solutions from 2022 to 2023 compared to the previous two years, indicating strong demand from financial institutions seeking to enhance their digital banking capabilities [1] - Financial institutions utilizing Alkami's solutions achieve an average return on investment (ROI) of 13 times, showcasing the effectiveness of these tools in driving user engagement and marketing success [1][2] Company Overview - Alkami Technology, Inc. is a prominent provider of cloud-based digital banking solutions for U.S. financial institutions, focusing on enabling clients to grow confidently and adapt quickly in a competitive market [5] - The company offers a range of solutions including transaction data cleansing, customer insights, marketing automation, and AI predictive models, all designed to enhance the digital banking experience and improve customer engagement [2][4] Industry Trends - There is a growing trend among U.S. financial institutions to become more digitally mature, with an emphasis on data-driven decision-making in marketing and operations [3][4] - The integration of data into marketing strategies is becoming essential for financial institutions to provide personalized experiences and drive revenue growth [4]

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Group 1 - Alkami Technology, Inc. is a leading provider of cloud-based digital banking solutions for financial institutions in the U.S. [2] - The company will present at the William Blair 44th Annual Growth Stock Conference on June 4, 2024, with CEO Alex Shootman and CFO Bryan Hill participating [1] - A webcast and replay of the conference will be available on the company's investor relations website [1] Group 2 - Alkami enables clients to grow confidently, adapt quickly, and build thriving digital communities through its services [2] - The company's offerings include retail and commercial banking, digital account opening, and data and marketing solutions [2]

Core Viewpoint - Alkami Technology (NASDAQ:ALKT) is recommended as a buy due to its large market potential and opportunities for upselling products in the digital banking sector, which is seen as a necessary evolution for financial institutions [2][11]. Business Overview - ALKT provides white-label banking solutions to US-based credit unions and small to mid-size regional banks, operating on a 100% cloud-based platform that integrates with third-party fintech services [3]. - In 1Q24, ALKT reported revenue of $76.1 million, a 26.9% increase year-over-year, surpassing the consensus estimate of $75.6 million, driven primarily by a 27% growth in subscription revenue [3]. - The number of live users grew from 17.5 million in 4Q23 to 18.1 million in 1Q24, reflecting a ~19.8% annual growth [3]. - Gross margins improved by 360 basis points to 61.7%, and EBIT improved from -$4 million in 1Q23 to $3 million in 1Q24, with margins at approximately 4% [3]. Market Potential and Upsell Opportunities - ALKT targets financial institutions with assets ranging from $500 million to nearly $50 billion, representing over 250 million potential users [5]. - A survey indicated that 81% of users access banking services online daily, highlighting the increasing demand for ALKT's solutions [5]. - ALKT offers 32 products with a blended Average Revenue Per User (ARPU) of $58, but there is potential to more than double this ARPU as the average product per client is only 13 [5]. - Management noted an increase in the average number of products sold per order, from 10 in 2018 to 18 in FY23, indicating a growing acceptance of ALKT's offerings [5]. Margin Expansion - ALKT is experiencing gross margin expansion, with management expecting an increase of over 200 basis points in FY24 due to improved operations and lower hosting costs [8]. - New businesses are being acquired at a gross margin of 67%, while renewal businesses are at 70%, indicating strong potential for further margin improvement [8]. Valuation - Based on a forward revenue approach, ALKT is valued at approximately $36, with a projected growth rate of 27% over the next two years [9]. - The valuation has improved from -4.5x to 7.3x since June 2023, and it is expected to continue trending upwards as revenue grows and EBIT margins improve [9].

Core Insights - Millennials are 56% more likely to grow their relationship with their primary financial institution over the next twelve months compared to Gen Xers and baby boomers [1][3] - The study highlights significant financial trends among millennials, including their response to the rising interest rate environment and their financial provider preferences [2][3] Financial Trends and Preferences - 73% of millennials report that the rising interest rate environment has significantly impacted their standard of living, a higher percentage than Gen Xers and baby boomers [2] - 65% of millennials feel they are living paycheck to paycheck [2] - Over 25% of millennials believe that buying a home hinders wealth accumulation rather than building it [2] Opportunities for Financial Institutions - 30% of millennials plan to increase the number of financial providers they engage with over the next twelve months, which is 2.5 times more than Gen Xers (14%) and baby boomers (8%) [3] - Millennials hold 14% and 28% more products with their personal financial institution compared to Gen Xers and baby boomers, respectively [3] - The study indicates that millennials are significantly more likely to switch financial providers for a better digital banking experience [4] Strategic Recommendations - Financial institutions should prioritize enhancing their digital sales and service platforms to attract and retain millennial customers [4] - There is a strong demand among millennials for personalized digital banking experiences, which financial institutions must address to remain competitive [4][5] Research Methodology - The study was conducted in partnership with The Center for Generational Kinetics, involving 1,500 participants weighted to the 2020 US Census for demographic accuracy [4]

Recognizing visionary financial institutions shaping the future of banking throughprogressive digital strategies PLANO, Texas, May 9, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., announced as a part of its 2024 Co:lab programming, the four honorees of the company's annual FIsionaries™ Awards that highlight innovative initiatives through Alkami's FIsionaries™ podcast. Sponsored by Alkam ...

The company proudly honors TechFin developers recognized for their innovation in digital banking PLANO, Texas, May 8, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., announced the success of its first external TechFin Hackathon, held as part of the Alkami Co:lab 2024 programming. Combining Alkami bank and credit union clients, fintech partners, and system integrators, the event provided a ...