Alkami Technology, Inc. (Alkami) operates as a cloud-based digital banking solutions provider.
The company inspires and empowers community, regional and super-regional financial institutions ('FIs') to compete with large, technologically advanced, and well-resourced banks in the United States.
The company's solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues, and meaningfully improve operational efficiency, all with the support of a pr...
Alkami Technology, Inc. (Alkami) operates as a cloud-based digital banking solutions provider.
The company inspires and empowers community, regional and super-regional financial institutions ('FIs') to compete with large, technologically advanced, and well-resourced banks in the United States.
The company's solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues, and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. The company cultivates deep relationships with its clients through long-term, subscription-based contractual arrangements, aligning the company's growth with its clients' success and generating an attractive unit economic model.
In October 2020, the company acquired ACH Alert, LLC (‘ACH Alert’) to pursue adjacent product opportunities, such as fraud prevention and to expand its addressable market. In addition, in September 2021, the company acquired MK Decisioning Systems, LLC (‘MK’), a technology platform for digital account opening, credit card and loan origination solutions. In April 2022, the company acquired Segmint Inc. (‘Segmint’), a leading cloud-based financial data analytics and transaction data cleansing provider.
The company's domain expertise in retail and business banking has enabled the company to develop a suite of products tailored to address key challenges faced by FIs. The key differentiators of the Alkami Digital Banking Platform include:
User experience: Personalized and seamless digital experience across user interaction points, including desktop, mobile, chat and SMS, establishing durable connections between FIs and their customers.
Integrations: Scalability and extensibility driven by more than 300 real-time integrations to back-office systems and third-party fintech solutions as of December 31, 2024, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.
Deep data capabilities: Data synchronized and stored from back-office systems and third-party fintech solutions and synthesized into meaningful insights, targeted content, and other areas of monetization.
The Alkami Digital Banking Platform offers an end-to-end set of digital banking software products. The company's typical relationship with an FI begins with a set of core functional components, which can extend over time to include a rounded suite of products across account opening, marketing, data insights, card experience, money movement, customer service, business banking, financial wellness, security and fraud protection and extensibility. Due to the company's architecture, adding products through its single code base is fast, simple and cost-effective, and the company expects product penetration to continue to increase as the company broadens its product suite. As of December 31, 2024, the company's client base, on average, used 14 of the company's 34 offered products. The company's 2024 new client cohort has contracted, on average, for 20 of its offered products.
The company's target clients include the top 2,500 FIs by assets excluding those with assets greater than $450 billion ('megabanks'). The company had 272 FIs as Alkami Digital Banking Platform clients as of December 31, 2024.
The company primarily goes to market through an internal sales force. Given the long-term nature of the company's contracts for the Alkami Digital Banking Platform, a typical sales cycle can range from approximately three to 12 months, with the subsequent implementation timeframe generally ranging from six to 12 months depending on the depth of integration.
The company derives its revenues predominantly from multi-year contracts for the Alkami Digital Banking Platform that have had an average contract life of approximately 70 months as of December 31, 2024. The company continues to expand its sales and marketing organization focusing on new client wins, cross-selling opportunities and client renewals. The company had 20.0 million live registered users as of December 31, 2024.
Industry
The company’s addressable market consists of FIs with assets of $100 million to $450 billion representing over 250 million registered users. Within this market, the company targets the top 2,500 FIs by assets excluding megabanks.
Platform and Ecosystem
The Alkami Digital Banking Platform is a multi-tenant, single code base, continuous delivery platform powered by a true cloud infrastructure. The company's platform integrates with core system providers and other third-party fintech providers, and acts as the primary interaction point among consumers, businesses and FIs. The primary benefit of this model is to reduce the inefficiencies of traditional point-to-point integration strategies, instead offering a single point of integration allowing the company's clients' customers to navigate seamlessly across channels. This is critical to FIs as their models shift from physical to digital, enabling the creation of a digital community in the image of their broader brands and aligned with their strategic objectives.
The Alkami Digital Banking Platform maintains more than 300 integrations as of December 31, 2024. The company's third-party partnerships and integrations are a crucial element of the Alkami Digital Banking Platform, enabling FIs to choose from, and connect with, a broad array of third-party service providers essential to the curation of a customized digital experience. This depth of product configurability and optionality is made possible by the software adapters the company has built to standardize access to solutions offered by third-party vendors.
The Alkami Value Proposition
The company has designed its solutions to improve its clients' ability to achieve their core objectives, including new client growth, customer engagement, increasing and holding deposits, making loans, facilitating money movement, and lowering overall operating costs. Importantly, the company makes its clients more competitive against the megabanks, challenger banks, and other technology-enabled competitors.
The technology that powers the company's platform is foundational to its success and ability to deliver a distinct value proposition to the company's clients, characterized by the following:
Premier User Experience: The Alkami Digital Banking Platform enables the company's clients to leverage technology to deliver a premier user experience. The experience the company builds, and that its clients deliver, is validated by the company's clients' market-leading app ratings, which are, on average, higher than each of the company's main competitors and reflect the level of customer satisfaction associated with leading technology brands.
Versatile Platform: The company's product breadth, depth of integrations, partner network and configurability enable the company's clients to more precisely match the company's products to suit the objectives of their digital offering. For the company's clients, this allows a degree of flexibility that is critical to their pursuit of differentiation without the technical burden and higher cost of custom software. For the company's business, this approach is tremendously scalable, enabling the company to serve larger and smaller institutions alike from a single platform, with a full product suite across both retail and business banking operations.
Velocity of Innovation: The company's ability to win and retain clients is a function of consistently striving to offer a platform with products and configurations that exceeds those of the company's competition. The company's multi-tenant architecture, combined with continuous delivery, allows the company to implement new and existing features in lockstep with the company's clients' evolving needs. The company's technological infrastructure provides a speed-to-market advantage which often allows the company to remain a step ahead of competitors who operate single-tenant or other legacy architecture.
Fraud Mitigation: The company's clients seek to achieve a balance between convenience and safety that is required in a digital banking solution. Biometric and multi-factor authentication, combined with machine learning wrapped in a leading user experience, creates a more secure user experience. Platform security capabilities such as card management and true real-time alerts further help to mitigate fraud and develop a relationship of trust between the company's clients and their customers.
The Alkami Digital Banking Platform delivers tangible results to clients, including increased registered user growth, increased product usage, operational efficiencies and customer retention.
Growth Strategies
The company's strategies are to deepen existing client relationships; win new clients; broaden and enhance product suite; and select acquisitions.
Solution
The Alkami Digital Banking Platform provides FIs with a complete digital banking solution designed to facilitate and meet the needs of both retail and business users. The company delivers its platform through a purpose-built, true cloud SaaS solution, enabling the company's clients to avoid costly and disruptive system-wide maintenance windows, as well as testing projects during upgrades, which is typical of single-tenant platform solutions that are prevalent in large parts of the industry.
The company's clients choose the Alkami Digital Banking Platform to:
Onboard new registered users efficiently.
Engage registered users with self-service functions, proactive alerting and financial insights.
Grow revenues and registered users through new product and service offerings.
Guard registered user data and interactions to mitigate fraud.
The company delivers this value proposition through the following 10 product categories, encompassing 34 products and more than 300 integrations as of December 31, 2024:
Digital Account Opening: Allows the company's clients' customers to open new deposit accounts, including checking, savings, CD and Money Market accounts. This offering enhances many of the company's clients' digital platforms and gives them the opportunity to digitize and replace many of the processes which formerly required a physical branch visit.
Marketing: Enables clients to deliver tailored, relevant and timely content via targeted marketing campaigns and educational outreaches to their customers. The company's acquisition of Segmint added unique data models and customer segmentation tools (Key Lifestyle Indicators or 'KLIs') to the company's platform's capabilities, enabling the company's clients to creatively segment and refine their marketing campaigns.
Data Insights: Enables clients to build internal analytical tools. The company's acquisition of Segmint added unique data models and customer segmentation tools (primarily KLIs) to the company's platform's capabilities, enabling the company's clients to better understand, model, and predict their customers' preferences, lifestyle, and financial needs.
Card Experience: Includes features that allow for cardholder alerts and control preferences, card account maintenance features for self-service, and digital card capabilities.
Money Movement: Includes fully integrated money movement tools to increase deposits, facilitate payments and transfers, and drive consistent user engagement. The Alkami Digital Banking Platform seamlessly integrates third-party services into a consistent digital banking experience that is portable across multiple user interfaces.
Customer Service: Includes a suite of products digitizing and streamlining communications around largely administrative functions. Products range from basic SMS and push notification capabilities to digital authentication and chat and conversational tools, both digitally as well as by human interaction.
Business Banking: Through real-time insight into cash position and the company's data capabilities, it equips clients to compete for businesses of all sizes—all while simplifying the back office with a single platform, which offers an industry-leading user experience. The company's business banking solution includes comprehensive payment and receivable solutions, sub-user permissions management, automated billing, payment fraud prevention, and actionable reporting, all built into a secure and scalable platform.
Financial Wellness: Aggregates and synthesizes information that client customers need in order to make informed financial decisions. This includes basic account aggregation, credit score monitoring, transaction data enrichment, home value tracking, savings goals, and access to third-party financial management products. Users are able to make healthier financial decisions, while the company's FIs gain valuable insights, enabling them to drive targeted marketing and product origination.
Security & Fraud Protection: Includes risk-based multi-factor authentication and suspicious transaction monitoring, as well as multi-channel payment fraud prevention and information reporting tools. The company's acquisition of ACH Alert (ACH Alert, LLC) enhanced its platform's capabilities in this product category.
Extensibility: Enables clients to embrace and extend the Alkami Digital Banking Platform using its software development kit (SDK) and application program interfaces (APIs). This includes the ability to integrate with internal systems and the broader fintech ecosystem, modify and customize workflows, and elevate the look and feel of the Alkami Digital Banking Platform.
Technology and Architecture
The company's platform is true cloud and entirely hosted and delivered on Amazon Web Services (AWS). The benefits of this infrastructure include resiliency, reliability and increased security; the company achieved an average of 99.9% uptime in the year ended December 31, 2024. True cloud infrastructure is also remarkably scalable, allowing the company to pursue its growth objectives without technological limitation.
The company's technology is predominantly differentiated by the speed-to-market with which the company can deliver innovation on the back of a true cloud infrastructure with the combination of the following architectural pillars:
Multi-Tenant Architecture: The company builds its platform from the ground up as multi-tenant. This enables the company’s clients to share in economies of scale enjoyed by large FIs, optimizing for speed, efficiency, reliability and increased security. Importantly, this model also enables the company to avoid a growth tax, or additional resource burdens arising from high growth upon a single-tenant platform. New clients can be efficiently on-boarded, new client customers can be seamlessly added and product upgrades and updates can be delivered quickly.
Single Code Base: The company's single code base is built upon a microservices architecture that leverages the company's multi-tenant model, compounding the efficiency of the company's infrastructure and software development lifecycle, regardless of the size, structure or complexity of the client. By maintaining a single code base, the company is able to quickly and continuously deploy new code to the company's entire client base, supporting many platform releases per year. With a microservices architecture, the company can support zero-downtime deployments, reduced testing complexity, automation and extensibility.
Continuous Delivery Model: The combination of a multi-tenant architecture and single code base is made more powerful when combined with continuous software delivery, enabling the company to update its entire client base at frequent intervals. This speed and execution enables the company's clients to confidently grow and compete with many of the most technologically advanced FIs in the world.
The company synchronizes, typically in real-time, the systems and modules into which the company integrates while also accumulating a data warehouse that can be synthesized into actionable insights and business intelligence. FIs need access to accurate and complete data. These timely insights extend across administration, marketing and strategy, informing decision-making for FIs and increasing user stickiness. For instance, the company's clients can identify users with a credit card or loan from another FI and market targeted, competing products to these users. This granular level of insight allows Alkami clients to digitally and systematically drive growth through smarter marketing and forecasting.
The vast majority of the company's technology is invisible to its clients' customers; however, the company's premier user experience delivered in partnership with the company's clients is highly visible. This includes an ease of use and seamlessness that begins with on-boarding, and extends through general usage, such as balance inquiries, moving money, monitoring credit, managing cards and executing transactions, such as deposits, loans and payments. Across the company's clients' customer base, the average registered user logged onto the digital application three times per week, in 2024, providing the company's clients more opportunities to engage with their customers than a physical branch-based relationship, further highlighting the motivation for the company's clients to promote client customer digital adoption.
The company's security infrastructure combines security and services from AWS with the company's own security protocols and integrations. This includes network traffic inspection, endpoint detection and response and automated patching and encryption of data, both at rest and in transit. In a world where the company's clients receive hundreds of millions of access requests per month from unverified sources, the company's security infrastructure is a key element of the company's value proposition, particularly against new entrants.
While the company's products and solutions are highly configurable, in certain instances the company's clients will request custom development and other professional services, which the company provides. These are generally one-time in nature and involve unique, non-standard features, functions or integrations that are not as broadly desired across the company's client base.
Clients
As of December 31, 2024, the company served 272 FIs through the Alkami Digital Banking Platform and over 750 clients when including unique clients only subscribing to one or a combination of ACH Alert, MK or Segmint products. The company’s clients include community, regional and super-regional credit unions and banks across both retail and business banking. While the company’s original product suite was retail focused, as the company enhanced its product suite to include greater depth of functionality for business banking in particular, the company significantly expanded its addressable market as FIs increasingly seek a single digital banking platform for all their retail and business banking needs.
The company's target client base includes the top 2,500 FIs by assets, with the exception of the megabanks.
The company's typical FI relationship begins with a subset of the Alkami Digital Banking Platform as part of a SaaS subscription contract, with an average contract life for those contracts of approximately 70 months as of December 31, 2024.
Sales and Marketing
The company's sales team includes representatives focused on new platform sales, a cross-sell team and client success managers. This team is responsible for outbound lead generation, driving new business and helping to manage account relationships and renewals, further driving adoption of the company's solution within and across lines of business. These teams maintain close relationships with existing clients and act as advisors to each FI to help identify and understand their unique needs, challenges, goals and opportunities.
The company utilizes a dedicated sales team in order to drive additional adoption of products within existing clients. In addition to identifying opportunities to extend the company's relationship with clients within the product suite, this cross-sell team is also responsible for identifying and addressing pain points with the company's existing solution and sourcing new ideas for additional product capabilities, whether developed internally or through partnership.
The company's client success team is responsible for nurturing relationships holistically throughout the duration of the contract, ensuring that the company understands their needs in real time and that the company's clients are deriving maximum value from the Alkami Digital Banking Platform. Importantly, this team supports retention and deepens the relationship with the client, providing the company with the best opportunity to renew clients upon contract expiration, often coupled with an extension of the relationship to additional products.
The company's marketing team oversees all aspects of the Alkami brand, including public relations, digital marketing, social media, product marketing, graphic design, conferences and events. The company's marketing efforts are focused on promoting direct sales, inbound lead generation and brand building. The company leverages online and offline marketing channels through digital marketing, account-based marketing, social media, and events, among other tactics.
Competition
The company competes against a number of companies, including Candescent, Q2 Holdings, Inc. and Temenos AG in the online, consumer and small business banking space. The company also competes with core processing vendors that also provide digital banking solutions such as Fiserv, Inc.; Jack Henry and Associates, Inc.; and Fidelity National Information Services, Inc.
Government Regulation
The company is a technology service provider to FIs in the United States that are subject to regulation, supervision and examination by a number of regulatory agencies, including the Office of the Comptroller of the Currency (the 'OCC'), the NCUA, the Board of Governors of the Federal Reserve System (the 'Federal Reserve'), the Federal Deposit Insurance Corporation (the 'FDIC'), and other federal or state agencies that regulate or supervise FIs in the United States.
The company is subject to disclosure, annual reporting and other requirements imposed by the National Credit Union Administration (NCUA).
In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 'Dodd-Frank Act') granted the Consumer Financial Protection Bureau (the 'CFPB') authority to promulgate rules and interpret certain federal consumer financial protection laws, some of which apply to the solutions the company offers to its clients.
The company's solutions must enable its clients to comply with applicable legal and regulatory requirements, including, without limitation, those under the following laws and regulations: the Dodd-Frank Act; the Electronic Funds Transfer Act and Regulation E; the Electronic Signatures in Global and National Commerce Act; usury laws; the Gramm-Leach-Bliley Act (‘GLBA’); the Fair Credit Reporting Act; laws and regulations against unfair, deceptive or abusive acts or practices; the California Consumer Privacy Act of 2018 (‘CCPA’) and other federal, state and international data privacy, security and protection laws and regulations; the Privacy of Consumer Financial Information regulations; the Bank Secrecy Act and the USA PATRIOT Act of 2001; the FFIEC IT Handbook and related booklets, statements and guidance, including the Guidance on Supervision of Technology Services Providers and the Guidance on Outsourcing Technology Services promulgated by the FFIEC; the OCC’s ‘Third-Party Relationships: Risk Management Guidance’; the NCUA’s Guidelines for Safekeeping of Member Information; the Federal Credit Union Act; and other federal, state and international laws and regulations.
In the ordinary course of the company's business, the company and its clients using its solutions access, collect, store, use transmit and otherwise process certain types of data, including personal information ('PI'), which subjects the company and its clients to certain privacy and information security laws in the United States and internationally, including for example, the Gramm-Leach-Bliley Act (GLBA), the California Consumer Privacy Act of 2018 and other state privacy regulations, and other laws, rules and regulations designed to regulate consumer information and data privacy, security and protection, and mitigate identity theft.
History
Alkami Technology, Inc. was founded in 2009. The company was incorporated in 2011.
