The Texas-based digital banking platform provider could raise up to $250 million in the IPO, likely bringing its valuation to $3 billion, per the Dallas Morning News. It will invest the proceeds into growth and capital expenditure initiatives, as well as in the development of new or improved solutions.
Alkami caters to smaller financial institutions (FIs) that are feeling the pressure of heightened digital expectations. Nearly three-quarters of US banking customers use some form of digital banking, and adoption is expected to continue to rise over the next several years. In response to these changing consumer habits, incumbents large and small have needed to prioritize modernizing their digital platforms. Digital-native neobanks focused on particular niches, such as Holvi and First Boulevard, are also stepping up and threatening to pick off the types of customers smaller banks usually serve. The most sizable FIs tend to have the necessary budgets to build and maintain a robust digital platform in-house, but smaller institutions with less cash often need to look beyond their own walls for assistance.
Smaller FIs should partner with digital banking platform providers like Alkami instead of relying completely on core providers to remain agile. In Insider Intelligence’s recent Innovation Strategies at Small and Midsize FIs report, we took a deeper dive into why—here are two key reasons:
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