It’s no surprise that financial institutions that service their customers’ everyday checking account needs also enjoy the coveted primary financial institution (PFI) status. And that status is highly sought after for good reason.
As a result of holding a customer’s deposit account, FIs can see an increase in access to customer data to inform offers and personalized services, the propensity to win referrals, future loans and future deposits, and the ability to meaningfully impact their customers’ financial wellness throughout their life. Once FIs have established themselves as the go-to for a customer’s checking account, they can then make their way to primary financial institution, or PFI, status.
Discover how a deposit accounts solution can make you top of mind for every consumer’s financial needs.
1. Clear path to top-of-wallet
FIs that have a successful deposit accounts solution are more likely to have their debit or credit card top of wallet in both the leather and digital card holder. Delivering a simple, streamlined process for consumers to not only open new accounts but also utilize them is critical — top-of-wallet status is dependent on that utilization, particularly for a customer’s direct deposit setup. Additionally, reducing friction in opening accounts creates more time and space to help onboard customers with direct deposit. Leveraging tools like switch kits can help reduce consumer effort to migrate away from where they bank today and begin using the new FI’s card sooner.
2. Measurable growth
As the checking account holder, FIs experience a number of derivative benefits. Customers who have a deposit account with an institution they trust are more likely to return to them with other financial needs. In fact, according to Raddon, with a primary checking account customer, credit unions are 37% more likely to gain future deposits, 17% more likely to gain future loans, and 10% more likely to gain referrals.
3. Bridging the digital divide
According to a report from PwC in 2021, 21% of surveyed consumers would prefer to open a new deposit account digitally but are unable to do so. A successful deposit accounts solution allows consumers to apply for a new account both online and at physical locations. This ensures customers are less likely to drop off in favor of their competition that does offer digital services. Catering to a wide range of customer needs, no matter where they prefer to open accounts, is necessary in bridging any digital gap.
4. Uninterrupted engagement
Part of establishing a deposit accounts solution that works is ensuring the consumer journey is seamless, engaging, and uninterrupted from conversion through activation and utilization. If customers have disjointed experiences (like with identity verification, a common hurdle to overcome), they’re more likely to abandon their application and look elsewhere. Additionally, seamless experiences reduce forced channel hopping, which can delay onboarding, frustrate customers, and create expenses in contact centers to bridge the gaps that exist in digital solutions today.
5. Cross-sell opportunities
With the data they gain from deposit accounts, FIs can proactively advise customers about other financial products they may need. In order to differentiate themselves from the competition, FIs must be a step ahead. That starts with rich, intuitive data that is only available from a highly utilized deposit account with recurring transitions, connected vendors, and more. These opportunities must also be contextual, relevant, easy to accept and fulfill, and simple to configure and manage. While holding a customer’s deposit account is the most important goal, what they do with the information from these accounts is just as crucial.
Partner with the right platform
Not only does a successful deposit accounts solution yield multiple business benefits, but it’s also the key to establishing lifelong customer relationships. By ensuring they have an easy, seamless, and accessible customer journey, financial institutions can also reach the highly coveted PFI status faster. And partnering with the right tech platform to help them establish a deposit accounts solution is one of the best ways to find success.
Blend is committed to providing products and services that help FIs deepen customer engagement and create lifelong relationships. Since Blend supports a deposit account solution that’s easy, intuitive, and personal, FIs can rest assured that they’re creating first-class customer experiences that are remembered.