Developed and launched via Alkami’s AI Predictive Modeling solution, the Engagement AI Model seeks to enable financial institutions to grow relationships with their most engaged account holders.
Based on the information detailed in the announcement, the model combines artificial intelligence (AI), machine learning (ML), and Alkami’s proprietary Key Lifestyle Indicators (KLIs) with the goal of empowering financial institutions to identify account holders who showcase behaviours that are most likely to lead to retention and account growth, and further increase their engagement with products, service offerings, and digital channels.
Financial institutions can leverage an attrition model to identify account holders that have an increased risk of leaving, offering the institution the possibility to develop win-back strategies. The press release highlights that according to Alkami's internal research, account holders who score the highest risk for attrition are, on average, 15 times more likely to leave a financial institution as opposed to account holders who score as being highly engaged. Alkami’s Engagement AI Model inverts their attrition model so that financial institutions are enabled to focus their time and budget where it most matters, namely in retaining and growing their engaged account holders.
When commenting on the announcement, Mark Leher, director of product management at Alkami said that when the company looked at the full spectrum of attrition scoring, the research indicated that attrition is significantly lower among those account holders that are highly engaged. This propelled the company to develop 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 behaviour a customer or member engages in) to best predict which are the behaviours that drive incremental engagement.
Further adding on this, the spokesperson advised that the model carries out assessments of the entire universe of a financial institution’s account holders daily looking to help identify those account holders exhibiting behaviours that, historically, have led to deeper engagement. Per the company’s official statement, this enables the financial institution to auto-surface highly relevant campaigns that are increasingly effective at driving growth. This is believed to not only save on account acquisition costs but to also empower the financial institution to engage with those that are considered more likely to act on a targeted campaign.
As a cloud-based digital banking solutions provider for banks and credit unions, Alkami announced in July 2023 that IC Credit Union has chosen the Alkami Digital Banking Platform to further its tech stack transformation.
In June of the same year, the company made public a separate collaboration, namely with Texas-based Lone Star National Bank which sought to assist the latter in bettering the customer experience while also positioning the bank for long-term growth. Additionally, the bank also selected the Alkami Digital Banking Platform to leverage it towards its digital transformation.
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