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Banks Target Account Opening Tech to Avoid Deposit Drift’s ‘Death by 1,000 Cuts’
- Consumer Financial Protection Bureau issued a final rule on data sharing, the age of open banking can get fully underway in the United States.
- FIs compete to be the key home for customers’ direct deposits, which are then used to fund loans, to gain account primacy.
- Deposit drift is a mounting pressure faced by FIs, which is a gradual migration of funds from traditional accounts, and banks need to focus on it, otherwise, they suffer death by 1,000 cuts.
- Older generations are looking for more flexible banking options, for FIs to extend personalized offers in real time, alongside a seamless, digitally-driven onboarding process.
- Banks and credit unions have a vested interest in gaining sticky, long-lived deposits.
- Amount last month announced the debut of its unified account opening and loan origination platform, providing client banks and credit unions with an integrated experience across deposit and lending products.
- There’s particular value in connecting those deposits into programs that offer SMBs and consumers loans tied directly to those deposit accounts.
- Amount helps client FIs wrap additional services around those deposits into what Eschweiler termed an “adaptive customer journey” that takes into account data points.
- From an opening perspective, that can really enhance real-time analysis to spot fraudulent activities during the process, providing an additional layer of security
- AI and Amount’s own historical data on accounts and lending helps FIs get in front of potential drift situations.
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