The 4 Challenges of Digital Bank Account Opening (and How IgniteConnex Overcomes Them)!
Written by Jeanne Moore
Implementing a digital bank account opening solution at your financial institution is no longer just a nice option to offer your customers but a necessity if you want your institution to thrive. Studies show that institutions that made digital onboarding available to their customers experienced market growth of 16%. In contrast, institutions that did not offer robust digital options saw their revenue growth decreased by 9% year over year.
Digital bank account opening solutions make opening an account quick and easy. That way, customers are more likely to engage with your financial institution, and you can experience lower application abandonment rates overall. To make the account opening process simple for your customers, it’s up to you to build a secure, user-friendly system that fully integrates with your institution’s existing technology. Here are four challenges you may face when implementing new digital bank account opening technology and how IgniteConnex can help you overcome them.
1. Meeting Security and Privacy Standards
Customers trust you to protect their money from hackers and potential fraud. This means your institution needs to verify that the person opening a new account is who they say they are and validate that the same person is accessing the account each time a new transaction occurs.
During the in-person onboarding process, you would have the customer present documentation proving their identity and then provide them with a PIN or other input key so they can access their account. Unfortunately, traditional account opening methods that require customers to travel to the bank or financial institution can slow down your application process. Offering digital bank account opening solutions can increase account opening metrics for your business.
IgniteConnex is a digital bank account opening solution that can make the identity verification process quick and simple for your customers. We integrate with a number of authentication databases that reliably verify and validate applicants’ identities in just moments, so you can quickly open accounts without fear of fraud.
2. Lengthy Application Processes
Building a digital onboarding system is more than just uploading the forms from your in-person application process into an app; the overall process can be streamlined to take less than 10 minutes and ideally less than 5. Any longer than that and around 40% of applicants will abandon the process.
Long forms that ask customers for a lot of information or an identity verification system that requires them to upload documents and then wait for manual approval can slow down the onboarding process and drive customers away.
IgniteConnex provides a streamlined account opening solution that collects only the information you absolutely need from your customers to ensure a quick and secure process. Using IgniteConnex technology, you can set your customers up with a new account in only a few minutes, giving you a competitive advantage and posing your institution for more sophisticated growth.
3. Customers Can’t Continue the Application
Sometimes, circumstances might prevent customers from finishing their account application in one session, or the customer might have a question that requires an in-person visit or phone call to your branch location. When an application has already been initiated on their mobile device, it is incredibly frustrating to arrive at your in-person location for help and find that they have to start a whole new application.
What is omnichannel account opening and why is it crucial?
Omnichannel account opening is when a customer starts the account application process in one channel, like over the phone or online, and then finishes through another medium, such as in person. This decreases application abandonment by allowing customers to ask questions or seek guidance and then return to the application where they left off instead of starting over again.
IgniteConnex integrates with your legacy systems so that customers can access their application without having to start the application from the beginning again. This addresses the customer need and can act as a feature to increase account openings over time.
4. A Digital Onboarding Interface That Is Difficult to Navigate
The appeal of digital bank account opening for your customers is that it should be quicker and easier than in-person or legacy systems. However, if your application system is challenging to navigate or confusing for your customers, you lose that advantage. Remember that you want your customers to set up their new account in around five minutes, so you don’t have time for them to be confused about what the application is asking for or have to stop and look up answers.
Typing large amounts of information on a smartphone keyboard is tedious, so enabling automatic data entry and short answers whenever possible can make account opening via mobile a more pleasant experience.
IgniteConnex is a scalable digital bank account opening solution designed by bankers for bankers. Our technology prioritizes high-speed and low friction with an excellent user experience to make opening a new account painless for your customers and help your institution bring in more revenue.
- Implementing a digital bank account opening process is essential but poses challenges for your institution.
- Typical identity verification processes that ensure security is time-consuming and more likely to lead to abandoned applications.
- The ability to revisit in-progress applications can increase account open rates over time.
- IgniteConnex combines security for your institution with a quick, easy user experience for your customers so you can see real financial growth.
Choosing The Best Digital Bank Account Opening Solution
IgniteConnex provides the most secure, user-friendly digital bank account opening technologies designed by bankers for bankers. We can help kickstart financial institutions’ digital transformation by enhancing the account opening experience and approval process for new customers. Access a cost-effective digital onboarding solution that can offer your financial institution enhanced security, a good return on investment, and scalable growth. Schedule a Demo to learn more!
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