The banking industry has seen unprecedented outflows of deposits and these outflows were especially pronounced in commercial deposits. Mid-sized banks lost 1.9% of total deposits in Q1 of 2023 alone. Adding to the stress of deposit outflows, the cost for raising deposits is going up across the banking industry.
Like consumers, business owners expect to interact with a similar level of technology in their banking relationships as they do in their everyday life. However, the challenge remains that opening a business account is complex with numerous points of friction. It’s not uncommon for staff to rely on lengthy manuals, paper “cheat sheets,” and inefficient back and forth with BSA teams to navigate the process. This limits a bank’s ability to scale business account origination across branch-networks and is heavily dependent on in-person servicing.
The Digital Pathway Forward
To attract the next generation of business operators, banks should focus their commercial deposit strategy on scalable customer-centricity. This requires banks to offer a digital application experience that takes into account the complexities of businesses of all sizes, industries, ownership structures and risk profiles. Staff should also be equipped with tools that enable them to do their jobs more efficiently while meeting regulatory requirements, whether they work from a branch, their homes, a call center, or are out in the field.
The Power of MANTL Commercial Account Origination
MANTL brings first-of-its-kind technology that enables you to support account opening fully online, fully banker-led, or any combination of the two. Our omnichannel approach creates a synergistic relationship between online and offline experiences to cost-effectively serve businesses of all complexities.
In practice, this looks like automated workflows for data and document collection that builds on itself as the system gathers information from the applicant. MANTL offers easily configurable KYC/KYB decision waterfalls and a tagging system that explains why accounts are flagged for EDD. Our technology provides a timestamped record of every engagement and decision that takes place for easy auditing. Lastly, our sleek digital experience makes it possible to collect information from all beneficial owners and stakeholders remotely and simultaneously as required.
Banks are using this synergy to their strategic advantage. For example, some choose to encourage sole proprietors and small businesses to open accounts in a more self-service fashion to lower the cost of originating smaller accounts. While others are using their newly acquired digital capabilities to attract out-of-market business accounts and test the viability of new markets prior to branch building. MANTL customers are delightfully surprised by the opportunities the platform unlocks to take their growth to new levels.
Schedule a demo to see MANTL Commercial Deposit Origination for yourself.
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