Partnership to accelerate account funding and
promote deposits growth for Blend Deposit Account customers
Blend, the leading platform for digital banking solutions, today
announced a new partnership with Astra, the pioneer in instant
payments-as-a-service, to enhance the digital onboarding experience
for consumers looking to quickly and seamlessly fund their new
deposit account.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240805329548/en/
For Consumers: A More Frictionless Deposit
Account Opening Experience
One of the most common challenges preventing consumers from
funding their deposit account within a single session is the lack
of optionality and convenience in funding methods. Traditionally,
ACH transfers have been the primary method for account funding, but
as digital payment methods evolve, banks and credit unions are
increasingly offering debit card funding as a more convenient and
user-friendly alternative for consumers.
By eliminating the need to find and enter routing and account
numbers that are required with ACH transfers, debit card funding
offers a quicker and more seamless account funding process,
enabling consumers to activate new accounts for use in a single
session.
Additionally, consumers with limited funds face a higher risk of
overdrawing their accounts when using ACH, which can lead to
additional fees. Debit cards help avoid this risk by only allowing
transactions up to the available balance. Debit card transactions
typically also result in immediate or near-immediate access to
funds, while ACH transfers can take a few days to process.
For Financial Institutions: More Accounts
Funded, Faster
By integrating Astra’s Card to Account payment solution directly
within Blend’s Deposit Account application flow, Blend customers
are able to drive digital engagement beyond just the initial
application capture, helping to reduce abandonment rates and
increase the speed it takes for consumers to complete an
application. And for internal support teams, that means less manual
outreach and follow ups to get accounts fully funded, and more time
deepening customer relationships.
“Today consumers expect a frictionless, real-time product
experience, and that starts at account opening,” said Gil Akos,
Co-Founder and CEO of Astra. “Financial institutions and fintechs
need to deliver a best-in-class onboarding flow to win new
customers – instant account funding is the perfect solution,
leading to improved activation rates of 30% or better on day one.
We're proud to partner with Blend to offer this experience to their
customers.”
Benefits of card funding:
- Accelerated Onboarding: Allow new
accounts to be funded sooner by removing friction in the
application process.
- More Activated Accounts: Convert
consumer interest into more activated accounts by offering multiple
account funding options.
- Reduced Abandonment: Reduce the
likelihood of consumers abandoning the process by driving digital
engagement beyond just the application capture.
- Smoother Application Experience:
Consumers report a smoother application experience with
user-friendly funding options like debit cards.
- Less Manual Intervention: Support
teams spend less time doing manual outreach and follow-ups to get
accounts fully funded when consumers have multiple funding options
to choose from.
Strong Consumer Preference for Card
Funding
As shown through data from Blend’s vast customer base (which
includes 140 of the top 1000 depository institutions by deposit
assets as of Q2 2024), card funding is one of the most popular
options selected by consumers when opening up a new deposit
account:
- One of the nation’s largest credit unions by asset size and a
Blend customer, reported that 82% of their new deposit
accounts were funded using Astra card funding, significantly
outpacing four other available funding methods.
- Another Blend customer and one of the top 100 largest credit
unions in the United States showed that 66% of consumers
prefer Astra Card funding over other funding methods.
Availability
Card funding for Blend Deposit Accounts is now generally
available for all customers. With an activation timeline of just
2-4 weeks, financial institutions can quickly integrate this
feature into their account opening processes. If you are interested
in adding card funding to your deposit accounts, please visit Blend
Deposit Accounts for more information.
About Blend
Blend (NYSE: BLND) is the infrastructure powering the future of
banking. Financial providers— from large banks, fintechs, and
credit unions to community and independent mortgage banks—use
Blend’s platform to transform banking experiences for their
customers. Blend powers billions of dollars in financial
transactions every day. To learn more, visit blend.com.
About Astra
Astra offers advanced payment infrastructure, powering faster
transfers for fintech products, financial institutions, and
enterprises. Astra’s proprietary, vertically integrated API enables
developers to offer instant payments and accelerated bank
transfers, with built-in optimizations to reduce risk. For more
information, visit astrafi.com.
Forward-Looking Disclaimer
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements generally relate to future events, future
performance or expectations and involve substantial risks and
uncertainties. Forward-looking statements in this press release may
include, but are not limited to, our expectations regarding our
product roadmap, future products/features, the timing of new
product/feature introductions, market size and growth
opportunities, macroeconomics and industry conditions, capital
expenditures, plans for future operations, competitive position,
technological capabilities and strategic relationships, as well as
assumptions relating to the foregoing. The forward-looking
statements contained in this press release are subject to risks and
uncertainties that could cause actual outcomes to differ materially
from the outcomes predicted. In some cases, you can identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expect,” “plan,” “anticipate,” “could,” “would,”
“intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these terms or other comparable terminology that concern Blend’s
expectations, strategy, plans or intentions. You should not put
undue reliance on any forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by which such performance or results will be achieved,
if at all. Further information on these risks and uncertainties are
set forth in our filings with the Securities and Exchange
Commission. All forward-looking statements in this press release
are based on information available to Blend and assumptions and
beliefs as of the date hereof. New risks and uncertainties emerge
from time to time, and it is not possible for us to predict all
risks and uncertainties that could have an impact on the
forward-looking statements contained in this press release. Except
as required by law, Blend does not undertake any obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future developments, or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805329548/en/
Chloé Demeunynck Corporate Communications press@blend.com
Grafico Azioni Blend Labs (NYSE:BLND)
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Grafico Azioni Blend Labs (NYSE:BLND)
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