Maximizing Deposit Growth: The Key to Optimizing Pull-Through Rates

In today's competitive banking environment, acquiring new customers is only part of the growth equation. Ensuring that potential customers complete the application process-particularly the crucial funding step-is equally important. This is where the pull-through rate metric comes into play.

For banks and credit unions looking to grow their account base, optimizing this metric can significantly impact their success.

What Is Pull-Through Rate, and Why Does It Matter?

Pull-through rate measures the percentage of applicants who complete the funding process after starting an account application.

This metric is a clear indicator of how effective your account opening process is at converting applicants into fully funded customers.

A high pull-through rate signifies that your process is smooth, intuitive, and meets customer needs, directly contributing to better ROI on your deposit account products.

It's important to look at pull-through rate is not just a number; it's a reflection of the customer experience. That's why you should be dedicated to continuously iterating and improving your funding experience, ensuring your workflows are optimized to help your financial institution achieve higher pull-through rates.

Common Barriers to High Pull-Through Rates

Through extensive research, we've identified three key reasons why applicants might abandon the funding process:

1. Limited Funding Methods: Applicants may not see their preferred funding method, leading them to exit the process.
2. Option to Skip Funding: Offering an option to skip funding can reduce the urgency and importance of completing this step.
3. Lack of Awareness: Applicants might not realize their account will be closed if not funded within a specific timeframe, leading to confusion and drop-offs.

Strategies for Optimizing Pull-Through Rates

Inspired by our findings, we've implemented several key changes to help banks boost their pull-through rates:

Eliminating the Option to Skip Funding

One of the most impactful changes you can implement is removing the option to skip the funding step during the application process.

This simple adjustment ensures that applicants don't bypass the critical final step of account creation. By eliminating this option, you make it clear to customers that funding is not just a formality but a necessary action to activate their accounts.

This change also reinforces the importance of the process in the customer's mind. Without the ability to skip, applicants are more likely to stay engaged, completing the funding step on the spot rather than postponing it-something that often leads to abandonment.

This approach has been especially effective for banks looking to boost their funding rates and reduce the number of incomplete applications.

One of our partner lenders achieved a remarkable funding rate in the high 90% range simply by eliminating the option to skip funding, underscoring the importance of a well-designed funding flow.

Introducing Multiple Funding Methods

Customer preferences vary widely, and offering multiple funding methods is crucial to accommodating these diverse needs. This is why introducing a variety of options, including traditional methods like ACH (Automated Clearing House) and more immediate options like debit card funding can be so powerful.

Tailoring funding methods to different account types is another layer of personalization that can significantly improve the customer experience. For example, Certificates of Deposit (CDs) are often funded through ACH, while checking accounts may be more commonly funded via debit card.

By aligning funding options with the nature of the account, you begin to make the process intuitive and user-friendly, thereby increasing the likelihood that applicants will complete it.

Create Customized Messaging

Effective communication is essential to guiding customers through the application process. Implement customized messaging that clearly explains the benefits of immediate funding, such as instant access to online banking and the issuance of a debit card.

This messaging not only informs but also motivates. By highlighting the tangible benefits of funding their accounts right away, you create a sense of urgency and importance.

Integrate clear instructions and reminders at key points in the process, which reduces confusion and ensures that applicants understand each step's significance.

Automate Follow-Ups

Even with an optimized process, some applicants may still need a nudge to complete their applications.

To address this, make sure to introduce automated follow-ups for unfunded accounts. These follow-ups should be strategically timed and designed to be both helpful and persuasive, reminding applicants of the benefits of completing their account setup.

This automation reduces the burden on bank staff, who would otherwise need to manually track and follow up with each applicant. Instead, the system takes over, ensuring consistent communication and increasing the likelihood that applicants will return to finish their applications.

As a result, banks can focus their resources on other critical areas while still achieving higher pull-through rates.

The Power of Data in Driving Results

Our extensive customer base at Blend generates a massive volume of application data daily, which we analyze to uncover key trends and behaviors.

This data-driven approach allows us to pinpoint exactly where customers are dropping off and why, giving us the insights needed to make targeted improvements. By leveraging these data insights, we've been able to refine the account funding process, optimize pull-through rates, and ultimately help banks achieve significant growth and profitability.

Conclusion: Elevate Your Bank's Growth with Optimized Pull-Through Rates

Optimizing your pull-through rates is not just about improving a single metric-it's about enhancing the entire customer experience, driving greater account funding success, and ultimately fueling your bank's growth.

By eliminating friction in the funding process, offering multiple funding methods, utilizing customized messaging, and implementing automated follow-ups, you can significantly increase the likelihood that applicants will complete their journey and become fully funded customers.

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