Did you know that 65% of surveyed institutions are categorized in the non-digital account opening segment? That means that the majority of their accounts are opened in the branch, a fact that in and of itself is unusual considering we live in an age of technological ubiquity. But it also means that they’re paying an acquisition cost of $138 rather than just $77 and that they’re also missing out on the fact that institutions with a high digital account opening rate are more likely to have higher revenue growth rates.
With statistics like that it’s clear the industry has a long way to go when it comes to executing digital transformation in a way that enables digital account opening to shine as a sales channel.
The flip side of that of course is the fact that banks still have a significant amount of potential to tap into when it comes to digital account opening.
Winning the fight to acquire, deepen and grow highly-engaged and profitable customer relationships all comes down to tapping into a formula for overcoming the enemies of a great experience.
Enemies of a great digital account opening experience
Real-life is messy and online applications are often started and then never finished as people get busy and distracted with other priorities.
Online bank applications often try to replicate every aspect of the branch process. As a result, lengthy applications are often abandoned in frustration.
Risk and compliance
Verifying the identity of a new account holder is necessary, yet challenging – especially for young applicant that haven’t established sufficient history with the credit bureaus. But requiring branch visits to prove identity aren’t the best solutions to the problem.
Lack of engagement
Just because a customer opened an account online does not necessarily mean they’re engaged. In fact, the opposite is often true, with those customers never activating the additional services that would enrich their experience and render them satisfied with the relationship.
To find out how banks are slaying these enemies, and for a sneak peak at the trends that will define banking priorities in the coming years, check out the ebook “The Future of Account Opening 2019.”