Blend builds a future where proactive finance rekindles the primary banking relationship
By Rachael Green, Benzinga
San Francisco, Calif. –News Direct– Blend Labs Inc.
In a market where the average household has approximately five different relationships with financial providers, financial institutions have become keen to find strategies that incentivize consolidating financial products with a single financial institution.
This financial fragmentation is due in large part to the rise of technology enabling innovative and intuitive financial products that allow customers to make more informed decisions and be more proactive about their financial health.
Blend Labs Inc. (NYSE: BLND), a provider of data-driven banking software, says financial institutions are at a crossroads where they must either adapt to this new distributed reality or commit to integrating new way to improve the user experience and promote loyalty. . That’s why it has developed a consumer banking platform that enables banks to offer customers personalized, convenient and streamlined features.
To counter financial fragmentation, banks must embrace proactive finance
Proactive finance is one of the latest banking trends. It is an approach that leverages data and technology to offer financial products based on a customer’s behavior, current financial situation, and other clues that can tell banks what kind of products the customer might need right now.
For example, when the value of an owner’s property increases, the bank may contact the customer to inform them and then offer information and next steps they could take based on that information, such as request of one home equity line of credit or cash refinance to fund renovations or a down payment on a second home.
Blend is preparing for a future in which banks could proactively send mortgage pre-approval, with an abbreviated list of the few options that best suit those specific customers — like showing VA home loans to current or former military personnel or the FHA and other low down payment options for first time home buyers.
While this future of proactive delivery is still in development, lenders are already leveraging Blend to minimize time-consuming data entry and maximize operational efficiency. The database that will enable proactive finance is already hard at work simplifying application workflows, pre-populating information and automatically validating data, allowing consumers and lending teams to focus on the things that matter most. important.
This approach disrupts the traditional transactional nature of banking in which banks wait for customers to make a direct request for a certain product or service before offering it. This kind of consistent and streamlined proactive banking experience, according to Blend, is key to rebuilding that primary banking relationship with customers.
How Financial Institutions Leverage Proactive Funding
As promising as proactive funding approaches are, the question of implementation remains a challenge. While some financial institutions are investing in data restructuring or implementing new staff training that emphasizes personal service, this is not always enough.
Mix of cloud-based software offers a third approach to implementation: leveraging technology that can both anticipate and meet each customer’s needs. For customers, the platform eliminates much of the manual work of filling out applications by allowing the bank to pre-populate forms using data it already has. For banks, digital tools like Blend Income Verification and the Remote Online Notarization Platform reduce much of the redundancy and delays in the application process so customers can be approved — and funded — faster.
Independent Bank Corp. (NASDAQ: INDB), subsidiary Rockland Trust Bank was able to shave seven days on the average processing time for its customers’ requests, for example. Similarly, Blend has helped Bank of Montreal (NYSEARCA: FNGU) BMO Harris Bank subsidiary cut five days out of its mortgage application and home equity cycles.
Going forward, the platform aims to give banks the artificial intelligence (AI)-powered tools they need to create a more personalized and proactive banking experience by helping customers understand their current financial situation and sending good offers at the right time.
This data and AI will strengthen the relationship between customers and banks by making it easier for customers to get all the financial services and support they need from one institution and on one intuitive platform.
The proactive financial approach that Blend will enable also allows banks to better anticipate a customer’s needs so that they can send offers and recommendations that help that customer better understand the type of options available, including options he might not have been able to ask for.
Powering the future of bankingBlend is the infrastructure that powers the future of banking. Financial service providers, from the largest banks, fintechs and credit unions to community and independent mortgage banks, are using Blend’s platform to transform their customers’ banking experiences. Blend powers billions of dollars in financial transactions every day.
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This article 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 article may include, but are not limited to, our expectations regarding our product roadmap, future products/features, timing of new product/feature introductions, market size and opportunities. growth, macroeconomics and industry conditions, capital expenditures, plans for future operations, competitive position, technology capabilities and strategic relationships. The forward-looking statements contained in this article are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results. Further information about these risks and uncertainties is set forth in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this article are based on information available to Blend and on assumptions and beliefs as of the date hereof. Except as required by law, Blend undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
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