Amount Targets ‘Deposit Drift’ With Account Opening Platform

Banking technology firm Amount has introduced its unified account opening and loan origination platform.

The new solution is designed to help banks and credit unions reduce costs, streamline operations and improve customer/member experience, the company said in a Tuesday (Oct. 15) news release.

“According to a 2023 survey by the American Bankers Association, 8 in 10 consumers agree that they have multiple options when selecting products and services such as bank accounts, loans, and credit cards,” Amount said in the release.

“Yet, the finding also suggests this may contribute to the complexity of managing accounts across different providers. As customer expectations evolve, financial institutions are expected to deliver seamless, personalized services across all touchpoints.”

The platform, per the release, offers benefits such as a way for financial institutions to minimize “deposit drift.” By providing an integrated experience across deposit and lending products, banks and credit unions (CUs) can help ensure customers and members keep their funds with that institution, rather than looking for alternatives.

The platform also offers a single, unified interface for opening deposit accounts and applying for credit, and centralized data management and automating workflows to accelerate account opening and loan processing times by up to 50%, the release added.

PYMNTS spoke earlier this month with Amount CEO Adam Hughes about the struggle banks and CUs face in serving smaller businesses.

“Eighty percent of small business owners say that having world-class, digital capabilities is extremely important and, frankly, expected from their bank,” Hughes told PYMNTS’ Karen Webster, noting that when small businesses start looking for the right lending experience, digital is “table stakes at this point.”

This expectation on the part of business owners is driven by convenience and quick access to credit, as well as the need for other financial tools, such as deposits. But small business banking is fragmented, with many financial institutions struggling to meet these customer expectations.

“Some of the biggest banks in the country are taking weeks to fund a small business client,” Hughes said, pointing to the challenges presented by manual, paper-intensive processes.

The reason? Businesses may want solutions fast, but legacy banks often move slowly. But that pace may no longer be acceptable amid competitive pressures from faster-moving FinTechs.

“Banks need to deliver that superior digital experience and those efficient workflows to make sure that their small business clients are getting the experience they want, as well as to ensure the banks are delivering that product in a highly profitable fashion,” Hughes said.