SAN FRANCISCO, CA / ACCESSWIRE / May 11, 2023 / Last December, Gartner predicted that 60% of financial institutions would be looking for compound economy solutions by 2024. Instead of off-the-shelf technology, composable software provides users with a library of pre-built modular components that each perform specific functions. This allows users to pick and choose the components they want to build their own custom solutions without having to code.
It also gives users the flexibility to add and remove components as they go, making it a much more flexible and sustainable solution to keep up with the ever-evolving technological world. For financial institutions, this flexibility can translate into as much as a 30% increase in revenue, according to Gartner.
That has turned this new technology trend into a fast-growing market. The Grand Review estimates that the global market for composable infrastructure is growing at a compound annual growth rate of 50.4% and will exceed $101 billion by 2030.
Now, Mixture (NYSE:BLND) brings modular flexibility to the origination process for banks launch of its composable origin technology. The new technology is available in the company’s Blend Builder platform, which already offers composable solutions for a range of consumer banking products such as deposit accounts, credit cards and car loans.
Blend’s composable origins make digital transformation possible for a traditionally complex process
The origination process can be cumbersome. It involves several departments in the bank which will often each have their own set of workflows and processes. While digital origination solutions exist, they don’t always offer the level of customization or integration needed to easily coordinate all of these separate workflows and processes.
That’s why Blend was launched Blend Builder, its composable origin platform. Rather than a ready-made solution, Blend Builder breaks down the origination process into a set of modular components, called blocks. This includes blocks for things like pricing, revenue verification, and closing, among others.
By dragging and dropping these blocks, users can build their own customer-origin products without the need for coding. For banks, this flexibility makes it easier to build a more streamlined user experience for customers, but it can also help reduce costs by eliminating inefficiencies and make it easier to scale by adding or removing individual components as needed rather than building a completely new system from scratch.
The offering is part of Blend’s overall transition from a multi-point solution to a single-platform business model as it capitalizes on the high growth potential of the composable technology market. In January, Blend announced that it allocated more of its operating expenses to Blend Builder as part of a larger set of strategic initiatives to curb costs and bring in more revenue.
The platform generates revenue from a base subscription fee as well as success-based transaction fees. The company expects that the improved platform together with the other strategic initiatives will improve the gross margins for the company already in the second half of this year.
Selected image of Paul Hanaoka on Unsplash.
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SOURCE: Blend Labs Inc.
