How Digital Leaders Grow Revenues 5X Faster
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What percentage of banks are at the highest digital maturity and how does it affect revenue growth?
13%. That's how many banks and credit unions in this country are operating at the highest level of digital maturity, according to Alchemy's latest retail banking digital maturity research. Of every 100 institutions, only 13 operate at that highest level of maturity. And those 13 grew average annual revenues at five times the rate of their less mature peers. Not 5% more, five times more. And here's what most banking executives misunderstand about those 13. They're not the largest institutions on the map. And one third of them actually have less than $500 million in assets. Meanwhile, Over 10% of the least digitally mature institutions have more than $5 billion in assets. In other words, digital maturity isn't correlated to size.
It tracks with how an institution thinks. If your approach still treats digital maturity as a matter of how much you can spend, you're asking the wrong question. The research breaks the industry into four segments.
Why doesn’t digital maturity correlate with asset size in banking?
At the least mature end is patiently exploring. Then comes innovation ready, then digital forward, And the most mature end, data first, is the 13% that I mentioned at the start. Most executives watching this already know which bucket they're in. What matters more is that these segments are not static. In one year, patiently exploring decreased from 14% of the industry to only 7%. And half of that group advanced. Digital Forward increased from 38% to 44%, while Data First increased from 9% to 13%. Some of those institutions did not move only one level. They jumped two segments and sometimes three in a single year, and some fell. In other words, The segments describe where an institution sits now, not where it has to stay.
Also, the definition of digital maturity has evolved, and most financial institutions have not kept pace. If you still think this is about your mobile app and your account opening flow, you're only measuring a fraction of what matters. Three factors distinguish the most mature institutions from everyone else today, and only one of them directly involves consumers.
What are the four segments of the Digital Maturity Model and how do institutions move between them?
The first is fraud and cybersecurity posture. The most mature organizations build fraud prevention into every digital interaction from the very start. Almost all now offer real-time fraud alerts and active card controls, and most are educating their customers on fraud prevention during the onboarding process. Mature organizations address fraud at the very beginning of developing new capabilities, not after they're already in place. That timing is the whole difference. The second factor is employee experience. The most digitally advanced institutions stopped treating user experience as a consumer-only issue. More than half of our top tier institutions say their employees have an above average digital experience within the bank.
Among the least mature, that number is only 2%. When your own staff can't operate systems efficiently, there's a limit to how good that customer experience can ever become. The third factor is data activation. which is where the gap is widening the fastest due to generative AI. The most mature organizations use data to automatically deliver targeted offers in real time during a customer's digital experience. The least mature are still trying to break down data silos. You know, I can hear your pushback already. We lack the budget.
Which three factors separate the most mature banks from the rest?
We don't have the talent or the bandwidth. I've been in this industry for almost a half a century, and I've heard every version of that since the beginning of my time in the industry. The institutions at the top of the maturity curve face the same constraints as everyone else. They simply made different choices with what they had. They set different priorities, they hired for different skill sets, and they chose different partners. They shifted their focus to the things that compound, and they stopped funding the things that didn't. The real question is what it costs to stay where you are while your peers are moving forward. And as that gap winds, it stops being a growth question and starts becoming a survival question.
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Chapters
7 chapters
1
What percentage of banks are at the highest digital maturity and how does it affect revenue growth?
0:00–1:07
2
Why doesn’t digital maturity correlate with asset size in banking?
1:07–2:26
3
What are the four segments of the Digital Maturity Model and how do institutions move between them?
2:26–3:52
4
Which three factors separate the most mature banks from the rest?
3:52–5:23
5
How do fraud prevention, employee experience, and data activation drive digital maturity?
5:23–6:42
6
What can we learn from Quantic Bank’s digital‑first transformation?
6:42–8:07
7
What actionable steps should banking leaders take this week to improve digital maturity?
8:07–9:26