Alkami's 2024 Telemetry Data Report Highlights the Effects of a High Interest Rate Environment on Consumers, Financial Institutions

Core Insights - The 2024 Alkami Telemetry Data Report reveals significant impacts of the high interest rate environment on U.S. consumers and financial institutions, with over two-thirds of Americans reporting a decline in their standard of living [1][2]. Consumer Trends - 67% of digital banking Americans indicate that rising interest rates have significantly affected their standard of living, and 59% are living paycheck to paycheck [2]. - Mortgage originations have decreased sharply, with a 72.5% decline in December 2023 compared to December 2020, while mortgage loan principal has increased by 42% during the same period [2]. - The average drawn balance on Home Equity Lines of Credit (HELOCs) rose by 31.7% from December 2021 to December 2023 [2]. - New car buyers in December 2023 are paying $323 more per month for auto loans, a 57.1$2,376 in 2023, marking a 19% increase over pre-pandemic levels [2]. - There were 5.17 times more Buy Now Pay Later (BNPL) users in 2023 compared to 2019 [2]. Implications for Financial Institutions - The report highlights trends in consumer deposits and credit products, emphasizing the need for regional and community banks and credit unions to adapt to changing consumer behaviors [2]. - Financial institutions can leverage Alkami's tools, such as the Digital Sales & Service Maturity Model Assessment, to enhance customer loyalty and improve digital banking experiences [3].