A community bank based in New York, Quontic Bank is modernizing its user experience and building unprecedented growth through its digital services.
As a CDFI, Quontic Bank is committed to serving low-income communities near its full-service branch and home mortgage office in Astoria, Queens. At the same time, Quontic has embraced innovation and become one of the first community banks to invest in digital banking.
To bring its digital offering to the next level, Quontic’s leaders decided to invest in a new online account opening platform with the goal of growing core deposits. The solution went above and beyond Quontic’s expectations, increasing the bank’s net conversion rate by 150 percent. Today, Quontic continues to lead the way with a digital brand that empowers customers of all backgrounds with accessible and easy-to-use financial products.
In 2018, Quontic was at a crossroads. With a balance sheet of 70 percent liabilities and 40 million in customer deposits, Quontic needed to increase core deposits according to an agreement with the Office of the Comptroller of the Currency (OCC). Rather than build additional branches or sell the bank, Quontic chose to pursue digital transformation.
Quontic’s goal was to use technology to scale its deposit operations quickly and raise $200 million in online deposits with minimal overhead. This transformation required some trial and error. Quontic uses FIS’ HORIZON core banking system, and decided to implement the vendor’s account opening platform as a starting point. However, this product had only a 20 percent conversion rate, requiring Quontic to increase its marketing spending and offer a high interest rate. At the same time, too many accounts were fraudulent or required manual intervention. It became clear that Quontic would need a new solution to become a truly digital-first bank.
When choosing a new partner for its digital transformation project, Quontic looked at six potential vendors. Stakeholders were quickly drawn to MANTL’s online account opening platform, which offers automated fraud prevention tools combined with data-based best practices. In addition, the company appreciated that MANTL would spearhead the integration with its FIS core.
After taking just 30 days to choose MANTL, Quontic Bank went live with the account opening platform on April 14, 2020. For Quontic, the key factors included:
Quontic is a community bank with a successful digital-first strategy. MANTL’s digital account opening software has made it possible to attract more checking relationships, which comprise 83 percent of new accounts with an average initial deposit of more than $45,000. Quontic has also been able to reduce marketing spend and lower its interest rate, as customers now actively seek out the bank online and are more likely to finish the application process.
At the same time, Quontic has raised $5 million in online deposits per month. The bank’s balance sheet is realigned, and 99 percent of its liabilities are core deposits. Quontic’s partnership with MANTL has allowed the bank to build a customer-first digital experience while solidifying its financial footing through digital growth.
Thanks to its digital transformation, Quontic can better serve local communities in a real way. The bank started the #BetheDrawbridge fund to support small businesses, with both the Quontic and MANTL teams working long hours over just three days to integrate this project with the platform. With MANTL as a partner, Quontic Bank is looking forward to a creative, successful future.
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