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Digital Escrow Subaccounting Solutions to Grow Commercial Deposits
Objective:
Due to recent economic uncertainties, banks across the U.S. have been challenged with managing their balance sheet liabilities. Encore Bank faced a similar hurdle as they recognized the need to grow their deposit base. To address this, the bank turned to ZSuite Technologies (“ZSuite”), a provider of subaccounting services for a variety of digital escrow verticals. Encore Bank sought a comprehensive platform that would solve their deposit-related challenges and grow their assets across various markets in multiple states. After an introduction from BankTech Ventures to ZSuite, Encore Bank found their solution.
Solution:
Encore Bank successfully implemented a niche deposit gathering strategy targeting title companies, law firms and the 1031 exchange market, leading to exponential growth in deposits. With a presence in eight states, including Florida, Texas, Colorado, and Tennessee, Encore Bank recognizes the importance of the commercial real estate industry and the mission critical component of 1031 exchanges in its operation. Understanding the unique demands and varying state regulations, ZSuite’s platform is able to provide guidance and state-specific solutions tailored for each bank branch. This enables Encore Bank to deliver a white-labeled, targeted approach that meets the needs of existing customers to increase stickiness, attracts new customers, and drives deposit growth.
“Conventional escrow and subaccounting processes are complex, manual, time-consuming and a compliance risk. We are thrilled to partner with ZSuite to offer our customers robust, innovative products that are a perfect fit for our business model.”
-Nikki Pfleger, Encore’s EVP Director of Business Banking Solutions
Risks & Controls:
The main challenge for Encore Bank lay in determining the method of product delivery within its treasury ecosystem. Each bank has a different organizational infrastructure and must determine whether it's a part of treasury operations or customer success. The ZSuite treasury team familiarized themselves with the product, developed sales strategies and established sensible pricing. Over time, the team established contacts with firms in their geography. Encore Bank also lacked a specialist with industry contacts, which could have accelerated the delivery of the digital escrow service. In response, ZSuite’s support and adaptability to the organization facilitated the sales cycle and accelerated growth. ZSuite was responsive and met Encore Bank where they were currently at.
Implementation:
Product: The complexity of implementation was managed by the ZSuite team, ensuring a seamless experience for the Bank with minimal lift. The solutions were labeled and easily integrated into the bank’s current tech stack.
Timing: Implementation took place in 2021, following an introduction from BankTech Ventures. Encore Bank became the 19th bank to onboard with ZEscrow, taking less than two months to stand up the platform.
Cost: ZSuite follows a subscription-based model for pricing, which is dependent on the number of accounts. This allows banks to avoid a large upfront cost and instead pay smaller costs as they bring in new business and accounts.
The ZSuite team is enhancing the data upload process through the use of APIs. Once completed, both the current method of batch file uploads and newly enhanced API connectivity method will be available to streamline the process for clients.
Looking Forward:
Encore Bank and ZSuite foresee a continued resilient and fruitful partnership. Regular meetings between the two parties have resulted in a robust pipeline of clients and system updates. Encore Bank views ZSuite as a partner rather than a vendor. They often attend prospect meetings together, with ZSuite providing additional insights on best practices and product expertise. Through ongoing collaboration, Encore Bank is well positioned for future growth and success.
To Get Connected:
Reach out to Kaitlyn Shevlin at kaitlyn@banktechventures.com to learn more or get connected with ZSuite directly by contacting Aaron Coleman at ZSuite at aaron@zsuitetech.com.
Encore Bank is a private, boutique bank with a commercial focus that couples talented bankers with innovative technology through a hospitality-inspired concierge approach. They offer personal, business, and association banking, as well as home loans. Encore Bank is located in Little Rock, Arkansas, they were founded in 1997. They currently have $4b in assets under management.
ZSuite Technologies provides a digital commercial escrow and sub-accounting platform to help financial institutions grow commercial deposits and expand business relationships. Property managers, law firms, municipalities, title companies, and other industries that heavily utilize escrow and sub-accounts provide a tremendous opportunity to grow sustainable, low-cost deposits for community banks. This value-added relationship can easily expand to lending opportunities increasing operational efficiency for banks and their clients. The platform can be easily integrated into a bank's existing tech stack.
