Blend Product Minute: Debt Consolidation for Consumer Banking

The Challenge:
Borrowers often struggle with managing multiple loans with varying interest rates and due dates, leading to confusion and financial stress. Lenders, on the other hand, miss opportunities to deepen customer relationships and drive meaningful financial impact by not proactively addressing debt consolidation needs, and making it easier for customers to control their finances. 

The Solution:
Blend's Consumer Banking embedded debt consolidation solution empowers borrowers by providing a clear, consolidated view of their debt obligations within the loan application process. This transparency enables informed decision-making and promotes financial wellness. For lenders, this translates to increased utilization, stronger customer relationships, reduced risk, and streamlined operations.  

Solution Highlights:

• Embedded Experience: Debt consolidation is seamlessly integrated into the Blend loan application flow, providing a holistic view of borrower tradelines and real-time calculations of potential savings.  
• Self-Selection: Borrowers can self-select debts for consolidation, promoting transparency and control over their financial decisions.  
• Financial Wellness Focus: The solution goes beyond just offering a feature; it actively promotes financial wellness by educating borrowers and empowering them to take control of their debt. 

Lenders using Blend's embedded debt consolidation solution can see up to a 60% increase in debt consolidation volume through self-selection. This increase in volume translates to deeper customer relationships, reduced risk, and streamlined operations for lenders.

For more information about this capability, get in touch with your Customer Success Manager or schedule time to talk with us.

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