SAN FRANCISCO--(BUSINESS WIRE)--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.
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.
