NEWARK, DE — Prismm is rolling out a beneficiary-designation tool for banks and credit unions aimed at helping financial institutions retain deposits as an estimated $124 trillion in wealth changes hands over the next two decades.
The estate orchestration infrastructure company’s Prismm Designate integrates beneficiary designation into the account-opening process, giving institutions a way to identify potential future account holders before assets transfer.
The platform keeps beneficiary information aligned with a financial institution’s systems and can identify existing accounts without beneficiaries on file. It also allows institutions to quantify deposits associated with accounts lacking beneficiary designations.
The product addresses a retention risk for banks and credit unions when an account holder dies and assets transfer to beneficiaries who may have no existing relationship with the institution.
“Banks and credit unions spend enormous effort winning a customer and almost none preparing for the day that customer’s money passes to someone else,” Prismm founder and CEO Martha Underwood said. “The institutions that thrive through the wealth transfer will be the ones that already know the beneficiary.”
Prismm is positioning earlier beneficiary identification as a way for financial institutions to establish relationships with the next generation of account holders while reducing the administrative burden associated with settling accounts after a customer’s death.
Prismm Designate also gives institutions a mechanism to identify their exposure to potential deposit outflows by determining which existing accounts do not have beneficiaries on file.
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