For many community and regional financial institutions, choosing to switch digital banking platforms is seen as more than a technology upgrade, but a career-defining decision. The stakes are high, timelines are often tight, decisions can seem complex and the path forward can be difficult to navigate. The truth is bank leaders are not making this decision, which needs to be collaborative and planned, every day. But when the decision is made with clarity, the outcome can transform both the institution and the digital banking experience.
So, what separates the successful switchers from those who stalled or had a poor experience?
Alkami surveyed digital banking decision-makers who in the last three years entered into a platform conversion project and who ended up with different outcomes. The research revealed interesting insights on what worked, what didn’t and what financial institutions can do to move forward with confidence.
Accelerating the Digital Experience
Across the board, the primary reason institutions decided to switch digital banking platforms wasn’t because of dissatisfaction with their provider, but ambition for the future.
Seventy-four percent of digital banking decision makers cite improving the customer experience as the top reason for them to consider exploring new digital banking platform providers. As primacy is on the table, regional and community financial institutions must commit to the new mindset that the digital experience is the brand experience. Bank leaders are foundationally building the future vision for digital channels and reframing the engagement behaviors.
Research shows the importance of digital banking. Americans conduct the majority of their mobile and online banking at their primary financial institutions. If financial institutions don’t modernize their platform and tools, they risk churn. Alkami’s 2025 Generational Trends study highlighted that half of all digital banking users say they would switch providers if another offered a better user experience, and 31% have already taken that step.
Three Categories of Platform Conversions
Financial institutions typically fall into three categories when it comes to platform conversions:
- Successful switchers. These institutions complete the journey with positive outcomes. They engage the right teams, align their switch plans with long-term strategic goals and focus on the holistic digital banking experience rather than short-term wins.
- Bad switchers. These institutions experience or complete the conversion but have challenges along the journey. They often emphasize executive-led decisions over input from cross-functional stakeholders, focus narrowly on cost and lack full internal alignment or readiness.
- Failed switchers. These institutions begin the process but can’t reach the finish line. Most get stuck during planning or evaluation due to resource gaps, unclear goals or underestimating complexity.
One of the clearest predictors of success? Whether an institution took the time to understand their own needs first.
What Successful Switchers Did Differently
Financial institutions that completed their conversion successfully approached their evaluation journey with a detailed plan. Here’s what they consistently got right:
- 1. Involved IT and digital teams early. By engaging IT and digital experience teams from the onset, these financial institutions were able ground their decisions in technical realities rather than assumptions.
- 2. Built a true needs assessment. Instead of jumping directly into a business case, successful switchers conducted a full evaluation of their current limitations, future goals and strategic priorities. They looked beyond features to understand what they truly needed.
- 3. Learned from peer institutions. The most common regret among those who embarked on a conversion was not talking to others who had recently switched. Peer feedback often served as a reality check, helping institutions refine their expectations and identify potential blind spots.
- 4. Focused on key performance indicators. Success wasn’t measured by leadership satisfaction or upfront cost savings. It was benchmarked by improvements in user experiences, operational efficiency and revenue growth.
Embrace the Transformation With Vision
Switching platforms can be transformational and successful with the right plan. What matters most is how institutions approach the decision. That’s not about a vendor. It’s about vision.
When considering a digital transformation, tap into insights from those who have recently converted to set the foundation for a successful switching experience.
