Deposits are critical to the health of financial institutions. They enable banks and credit unions to offer lower rates for lending than competitors and invest in new services while staying profitable. Plus, for many institutions like a credit union, opening an account is a requirement for new members before they can take advantage of lending products. However, the deposit account opening experience at most banks is still rooted in the past, requiring branch visits and manual document collection and verification.
That’s about to change.
Today’s deposit account market conditions
Over the last few years, lending startups have begun to use deposit accounts to deepen their customer relationships — and most of these startups have no physical locations at all. At the same time, major financial institutions have made huge investments in digital solutions to improve customer acquisition. As a result, mobile-first experiences for opening deposit account are becoming the expectation, and not just a “nice-to-have.” Smaller institutions, meanwhile, have struggled to offer digital-first experiences as seamless as those created by larger competitors.
Blend recognizes this, and after spending the past six years building intuitive products that simplify the process of getting a mortgage, we’re bringing the same thinking to the experience of opening a deposit account.
Why Blend is building deposit account technology
Building a deposit account product that integrates with Blend’s Mortgage or Home Equity products is a natural progression — we are here to power frictionless, compliant, and more accessible consumer lending experiences and believe deposit accounts are an important piece of this puzzle.
This integrated solution is built on the same platform as our home lending products and simplifies the process by creating functionality to pre-fill applications so that customers don’t have to fill out multiple applications to satisfy multiple financial needs. And when a financial institution offers a discount for opening up a deposit account, the consumer benefits from a better rate — and that increases their likelihood of moving forward with the offer. The result is a happy consumer who now has a reason to engage online with the institution beyond their automatic monthly loan payment.
Forming that long-term engagement is what deposits are all about. They create a channel through which financial institutions can more easily market other products to their customers and provide more value.
The future of deposit account opening
Financial institutions know that the deposit account process is a compliance Rubik’s Cube, often requires in-branch visits, and isn’t intuitive. It’s more difficult than it needs to be, and that needs to change. We are excited to embark on the deposit account adventure with our customers because we know that the problems we are tackling and Blend’s products will help any financial institution cost-effectively acquire more customers and create loyal customers for life.