Prismm is targeting the massive liquidity shifts expected during the upcoming great wealth transfer by launching Prismm Designate. This new capability integrates beneficiary identification directly into the account-opening workflow for banks and credit unions. The move aims to mitigate deposit outflows by establishing connections with heirs long before assets actually transition between generations.
Prismm Designate Integration Strategy
The new solution, Prismm Designate, embeds beneficiary designation into the initial account-opening process to ensure data is captured at the earliest possible stage. By automating this step, the platform keeps beneficiary information synchronized with existing institutional systems. Beyond new accounts, the tool allows financial institutions to scan their current books to identify existing accounts that lack beneficiary designations on file. This capability enables banks to quantify their specific deposit exposure regarding future transfers. Prismm positions this as a method to reduce the operational burden typically associated with settling accounts following a client's death, while simultaneously providing a structured path for engaging the next generation of depositors.
Addressing the $124 Trillion Transfer Risk
Financial institutions face a significant retention challenge as an estimated $124 trillion in wealth is projected to change hands over the next two decades. Without proactive beneficiary identification, banks risk losing these assets to competitors when original account holders pass away. Prismm is positioning its infrastructure to bridge this gap by making beneficiary data a default component of the onboarding experience. By identifying heirs years in advance, institutions can attempt to build early relationships with future wealth holders. This strategic focus addresses the fragmentation inherent in traditional inheritance processes, attempting to transform a reactive settlement event into a proactive client acquisition and deposit retention opportunity.
Key Takeaways
- Prismm Designate integrates beneficiary identification into the account-opening process for banks and credit unions.
- The platform enables institutions to identify accounts lacking beneficiaries and quantify related deposit exposure.
- An estimated $124 trillion in wealth is expected to transfer hands over the next 20 years.
FinanceInsyte's Take
In our view, Prismm is moving to solve a critical "leaky bucket" problem in retail banking. As the $124 trillion wealth transfer approaches, the primary risk for institutions is not just the loss of assets, but the loss of the client relationship itself. By shifting beneficiary capture from a reactive settlement task to a proactive onboarding requirement, Prismm is providing the infrastructure necessary to secure the next generation of deposits before the transfer occurs.
Questions & Answers
How does Prismm Designate impact the account-opening workflow?
The solution incorporates beneficiary designation as a default component during the initial account-opening process, ensuring that beneficiary data is captured and aligned with the institution's existing systems from the start.
What specific risk does this tool help banks quantify?
Prismm Designate allows financial institutions to identify accounts that currently do not have beneficiaries on file, enabling them to quantify their specific deposit exposure regarding future wealth transfers.
What is the primary market driver for this new product?
The product is driven by the projected transfer of $124 trillion in wealth over the next two decades, which creates a significant risk of deposit outflows if institutions fail to establish relationships with heirs.
How does the platform address operational challenges in estate settlement?
By capturing beneficiary information earlier and maintaining it within institutional systems, the platform aims to reduce the operational burden required to settle accounts after a client's death.
Source: getprismm.com
