Game-changer: Blend and Astra team up to revolutionize account funding

In a move set to revolutionize the banking industry, Blend, the leading platform for digital banking solutions, has partnered with Astra, the pioneer in instant payments-as-a-service, to enhance the digital onboarding experience for consumers. This partnership aims to streamline the process of funding new deposit accounts, addressing a common hurdle that often frustrates new customers.

Enhanced Onboarding Experience

One of the significant challenges in funding deposit accounts is the lack of convenient and versatile funding methods. Traditional ACH transfers, though widely used, often come with the hassle of entering routing and account numbers and can take several days to process. In contrast, debit card funding offers a quicker and more seamless account funding process. By eliminating the need for routing and account numbers, debit cards allow consumers to activate new accounts in a single session, providing near-instant access to their funds and reducing the risk of overdrawing their accounts.

This innovative approach, facilitated by Astra’s Card to Account payment solution, is integrated directly within Blend’s Deposit Account application flow. This integration not only speeds up the funding process but also enhances digital engagement, reducing abandonment rates and decreasing the need for manual follow-ups by support teams.

For Financial Institutions: Faster Funding and Better Engagement

Financial institutions stand to benefit significantly from this partnership. By adopting Astra’s payment solution, banks and credit unions can offer a more user-friendly and efficient onboarding process. According to Gil Akos, Co-Founder and CEO of Astra, “Today consumers expect a frictionless, real-time product experience, and that starts at account opening. Instant account funding leads to improved activation rates of 30% or better on day one.” This partnership aims to meet these high consumer expectations by providing a best-in-class onboarding flow that fosters customer loyalty and satisfaction.

Data from Blend’s extensive customer base, which includes 140 of the top 1000 depository institutions by deposit assets as of Q2 2024, shows a strong consumer preference for card funding. For instance, one of the nation’s largest credit unions reported that 82% of their new deposit accounts were funded using Astra card funding, significantly outpacing other available methods. Another top 100 largest credit union in the United States indicated that 66% of consumers preferred Astra card funding over other options.

Market Impact and Consumer Preference

The benefits of this partnership extend beyond faster account funding. The streamlined process leads to more activated accounts, reduced abandonment rates, and less manual intervention by support teams. Consumers enjoy a smoother application experience, with multiple funding options to choose from, enhancing their overall satisfaction with the onboarding process.

This collaboration also supports Blend’s broader mission to drive digital engagement and improve operational efficiency for financial institutions. By integrating instant payment solutions, financial institutions can focus more on deepening customer relationships and less on the administrative tasks of account funding.

Revolutionizing Account Funding

Industry experts have praised this partnership for its potential to set new standards in the banking sector. The ability to offer instant account funding addresses a critical pain point for both consumers and financial institutions. This innovation is expected to lead to higher activation rates and increased customer retention.

The general availability of card funding for Blend Deposit Accounts means that financial institutions can quickly integrate this feature into their account opening processes, typically within 2-4 weeks. This rapid deployment ensures that banks and credit unions can keep up with consumer demands for faster, more convenient banking solutions.