Constant economic changes, evolving customer expectations, emerging technology, and other market challenges have forced banks to be even more innovative in their strategies to achieve business goals. Building on – or expanding upon – commercial services like escrow management is often an untapped strategy. Many banks are still relying on siloed data systems and manual processes (including labor-intensive, error-prone spreadsheets) to track and add sub-accounts.
The rising competition from fintech startups leveraging technology to create unique customer experiences has forced large banks to respond by innovating themselves. Large banks frequently embrace technology as a key strategic differentiator for long-term success. Community banks are making headway in providing personalized customer experiences to compete with larger banks, but challenges remain.
The good news is that by utilizing a deposit escrow management system as part of a digital strategy, you can support strategic commercial banking growth. Here are three ways it can help you today:
In a recent survey, 38% of bankers said that reducing paper-based processes remains one of their top challenges. And it’s estimated that companies lose 20-30% of their revenue to inefficiencies every year – a lot of it laid at the feet of difficult-to-use systems.
By utilizing deposit escrow management software, you’ll be able to say goodbye to manual account processing (and spreadsheets!) and maximize your bank’s operational efficiency. You can also:
Deposit escrow servicing requires special regulatory, conditional interest accrual and payment options, accounting, transaction operations, and reporting not easily accommodated in standard depository systems. With the right deposit escrow management software, you can satisfy these unique requirements. New escrow account types can also be created quickly with no programming, helping your bank service a wide variety of customers.
Finally, escrow management software can give you flexibility to be more responsive to the market with convenient features that you control, including comprehensive reporting (including alerts and activity reports), statements (master and sub-accounts), exportable transaction history, BAI interface files, and federal tax withholding reports.
Incorporating deposit escrow management software into your bank’s digital strategy represents a prime opportunity to drive revenue that you don’t want to miss. You can:
Not only will your bank be on the fast track to revenue through fees and new net interest income, you’ll reduce the operating costs of account opening, allocating deposits, and servicing times for escrow management. It’s a win-win.
While improving your overall efficiencies and driving new revenue by harnessing the latest escrow management technology, you’ll be well-positioned to penetrate new markets and strategically grow your commercial base. You can also strengthen existing banking relationships.
No matter your bank’s size, deposit escrow management software:
You’ll gain the ability to support customer self-servicing of escrow accounts via an internet banking application on a web server at your bank, or as a hosted solution. Your customers, in turn, will gain helpful self-service options that save you time and money, including convenient online access to master escrow accounts and sub-accounts. Customers can add new escrow sub-accounts as well as edit, close, reopen, or delete sub-accounts. They can also view any pending transactions, allocate or reallocate deposits, and quickly transfer funds between sub-accounts and a master account.
And you can easily serve customers with a wide variety of escrow accounts like:
Last but not least, your customers will benefit from increased security and a superior audit trail. A deposit escrow management system provides multiple levels of security for both your bank and customers’ employee access limits. Your bank can also choose to limit the features available to selected customers.
Banks that want to overcome competitive challenges and grow their commercial base will always face hurdles. By investing in deposit escrow management software as part of your go-forward digital strategy, you can increase revenue through fees and net interest income, improve efficiencies for you and your customers, and strengthen your market position.
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