Blend Labs (BLND) Wells Fargo 8th Annual TMT Summit Conference summary

Origins and mission

• Inspired by outdated technology in mortgage banking post-2008 crisis, the company was founded to modernize mortgage origination using real-time data and digital processes.

• Initial focus was on large banks, expanding later to consumer banking due to similar technology gaps in personal loans and credit cards.

• Success-based pricing model charges per funded loan or opened account, with consumer banking growing over 50% year-over-year.

Product innovation and platform expansion

• Platform integrates all key mortgage process elements: credit, income, assets, property, title, and insurance.

• Acquired a title company to control a critical process step, with ongoing innovation despite market headwinds.

• Add-ons like digital closing and homeowner's insurance have increased revenue per loan from the $60s to high $90s in three years.

• Blend Builder platform enables rapid product development and localization, supporting both domestic and potential international growth.

Market share, competition, and customer base

• Achieved 20% market share in U.S. mortgages, with 4x growth in customer base since 2019 despite industry downturn.

• Top-tier banks mainly choose between in-house solutions or this platform; mid-market faces competition from nCino/SimpleNexus.

• Exploring scalable solutions for smaller lenders and credit unions, which represent a significant market segment.