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1、BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 1JANUARY 2023Best Practices for Successful Digital Account Openingbanking transformedwhite paperby:Jim Marous BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transfo

2、rmed White Paper.All rights reserved.PAGE 2Copyright 2023:Banking Transformed White Paper(ISSN 2375-3455)is published by DBR Media LLC,8803 Brecksville Rd.,STE 7-223,Brecksville,OH 44141,USA.Phone:+1(216)218-4257 White Paper Special Edition January 2023Publisher:Jim Marous,Creative Director:Carol An

3、n RyanWARNING:Federal copyright law prohibits copying or distributing this report in part or in its entirety.(2023)Jim MarousOwner and CEO,Digital Banking Report Host,Banking Transformed PodcastDigital capabilities and functionality are impacting every aspect of the banking industry.As banking execu

4、tives prioritize digital investments,there is no better place to start than with the new account opening process.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 3More than ever,consumers want to partner with banks and credit unions

5、that can simplify their daily lives and improve their financial wellness.There is little patience for time-consuming online or mobile processes in a world where groceries,apparel,electronics,cars,or even a house can be purchased in a matter of minutes.Research shows that most financial institutions

6、are losing more business than they generate due to outdated back-office processes that have not been automated for a digital future.Opening a new relationship with a financial institution needs to reflect consumer demand for digital engagement that is fast and intuitive.As branches are used less for

7、 routine transactions that can be handled digitally and used more for engagements that are more complicated if at all,banking must respond accordingly.With this as the“new Letter from the AuthorJim Marousnormal,”organizations need to support humanized digital options better than they do currently.Ou

8、r research has found that unless a financial institution can open a new account or complete a new loan application in less than five minutes,the potential for the consumer to abandon the account opening increases to as much as 60%or more.In fact,faster account openings have been proven to reduce aba

9、ndonment rates down to 25%or less.In other words,if organizations can eliminate unnecessary steps and streamline account opening,they can double or triple the number of new relationships.Digital account opening must be re-imagined to reflect the simplicity consumers have encountered when they have o

10、rdered from Amazon,opened a new Apple card,watched a movie on Netflix,or had groceries delivered by Instacart.Wanting consumers to visit branches to open a new account or apply for a loan is not a winning strategy.Unless processes are improved,potential new customers will be lost,and costs of operat

11、ions will remain elevated.Financial institutions must embrace a customer-first,data-driven strategy that will make seamless digital engagement the primary mission.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 4Letter from the Auth

12、orBottom line,if someone cant open an account without stepping foot inside a branch,then you dont really offer digital account opening.Many financial institutions realized that minor modifications to current account opening and loan application processes were not enough.They decided to start with a

13、blank sheet of paper and to only add a request for information from the consumer if it wasnt available anywhere else.So,if a consumer already had an account with the bank or credit union,most of the information that was normally requested was already filled in.For organizations that may struggle wit

14、h letting go of legacy processes,there are many third-party providers that can help to improve the digital account opening process.These firms can help remove friction,increase engagement,and improve customer satisfaction using time-tested tools and strategies.Many of these providers can fix digital

15、 account opening processes in less than six months.Digital banking transformation is not simply enabling a consumer to transact using a digital device.It requires a rethinking of all processes and operations for a digital experience that compares to the best in all industries.This process begins in

16、the back-office and impacts all components of digital engagement.We appreciate the sponsorship of this white paper by Newgen Software.It is hoped that the findings help organizations deliver the new account opening experiences that consumers crave and that can improve revenues and efficiencies for b

17、anks and credit unions.Jim MarousOwner&CEO,Digital Banking Report Host,Banking Transformed PodcastBEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 5New deposit and loan relationships are the foundation for growth of financial institu

18、tions.Beyond marketing and aggressive offers,stream-lined digital account opening processes have the biggest impact on sales efforts.More than ever,consumers must be able to finish the entire process on their smartphone in a matter of minutes.Meeting the Needs of Increasingly Digital ConsumersDigita

19、l and in-person account openings follow the same basic steps:The bank or credit union collects the applicants data,verifies the applicants identity,approves the application,collects a signature from the new customer,and allows the customer to fund their account.The difference between digital account

20、 opening and what has been done by banks in the past is not just providing the ability to handle all the steps digitally,but also a complete reimagining of steps for a digital world.This includes,but is not limited to,user experience driven responsive design,the need for simplified staging,as well a

21、s mobile identification verification.Done well,digital account opening eliminates a massive amount of keystroking by the customer by pre-filling components of the process from insights already available through primary or secondary sources.Most importantly,a digital account opening process should be

22、 able to be completed entirely on a mobile device in less than 5 minutes.Mobile device touch screens and cameras,in addition to the inherent portability of mobile devices,call for the addition of new,mobile specific features such as data capture and document upload via the device camera,touch signat

23、ures,and location tracking for reporting and other functions,like fraud prevention.Digital account opening,at the basic level,should have the ability to perform the following:1.Capture and/or auto-fill basic personal identity information.2.Qualify applicants from a risk/fraud perspective.BEST PRACTI

24、CES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 63.Verify applicant identity(usually through third-party data sources).4.Fund digitally in real-time(usually with either a debit/credit card or with mobile deposit capture).5.Integrate with the c

25、ore banking system.Beyond the five core features,additional features should be included in any best-of-class digital account opening process:Contextual pre-qualification for,and cross-sell of,additional products and services using collected internal and external insight.Online and mobile banking sin

26、gle sign-on(bypassing data entry and identity verification steps).Ability to save and resume digital account opening at any point in the process(supporting multichannel integration).Electronic signatures(replacing signature cards).Ability to upload photos of supporting identification documents for d

27、igital storage(business agreements,etc.).As we look at the future of digital account opening,the building of a mobile account opening process at speed and scale should drive the processes required for online account opening and even branch account openings.“Most top banks and credit unions offer onl

28、ine account opening,yet mobile-optimized digital account opening capabilities,where a branch engagement is not required and where an account can be opened seamlessly within 3-5 minutes,is still not commonplace.”Digital Account Opening(DAO)TrendsMost top banks and credit unions offer online account o

29、pening,yet mobile-optimized digital account opening capabilities,where an account can be opened seamlessly within 3-5 minutes without any branch engagement,is still not commonplace.As mobile banking functionality and customer acceptance of mobile banking has continued to increase,not being able to o

30、pen a new account quickly and easily on a mobile device has had a dramatic negative impact on account opening success.Digital account opening(DAO)is performed by incumbent banks(some of which have digital-only components),digital challenger banks,and big tech firms who are increasingly entering the

31、battlefield.These firms have eliminated friction out of the process and simplified onboarding using digital channels.According to a 2020 study from Lightico,only 8%of digital bank customers said they had trouble opening a new account online,outperforming major incumbents,such as Bank of America,wher

32、e 30%reported difficulties.While BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 7CHART 1:CHART 1:US DIGITAL ACCOUNT OPENING(DAO)2019-2023In millions Research as of August 2021Note:Includes FDIC-backed full service bank accounts,cre

33、dit union accounts,or brokerage accounts opened via web browsers or mobile app by an individual;includes digital-only banks;excludes accounts opened in person or over the phone but are managed through an online platformSource:Insider Intelligence January 2023 Digital Banking Report1.9M12.1M20193.7M9

34、.2M20204.3M11.7M20214.0M9.2M2022E4.4M8.8M2023E Digital-only bank account openings Traditional Digital-only bank account openingslocal banks(16%)and credit unions(21%)performed better,much of this was attributed to greater human involvement.According to eMarketer,total digital-only bank account openi

35、ngs plummeted 48.2%year-over-year(YoY)in 2020,but have since recovered.Traditional banks,on the other hand,took much less of a digital account opening hit in 2020(a 3.1%YoY shrinkage).They have since experienced a modest rebound that is expected to continue in the future.Applying for an account with

36、 a neobank often takes about 2-5 minutes a fraction of the time of most incumbents(over 10,and often 15 minutes).One step that eliminates customer frustration is that many digital challengers quickly divert digital applicants to a call center when a prospect experiences challenges or abandons the DA

37、O process.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 8CHART 2:CHART 2:TOTAL DIGITAL ACCOUNT OPENINGS 2020-2024In millions and%change/Date of research May 2021Total digital account openings Percentage change10.1M13.4M13.6M14.6M1

38、5.M32.3%1.8%7.1%6.9%-35.1%202020212022E2023E2024ENote:Includes FDIC-backed full service bank accounts,credit union accounts,or brokerage accounts opened via web browsers or mobile app by an individual;includes digital-only banks;excludes accounts opened in person or over the phone but are managed th

39、rough a digital platform;excludes credit cards and loans.Source:eMarketer January 2023 Digital Banking ReportUse of Third-Party PlatformsTraditional banking organizations can either choose to build an internal solution,or they can leverage third-party solution providers to provide some or all the co

40、mponents of the process.The use of outside solutions can be a major advantage due to the speed of implementation and scalability of solutions.When Cornerstone Advisors asked about the level of interest in using third-party solution providers,29%of organizations noted an interest in using outside par

41、tners to assist in building a better DAO process.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 9CHART 3:CHART 3:INTEREST IN THIRD PARTY PROVIDERS FOR DAO SOLUTIONSLevel of interest in Fintech partnerships according to US bank exec

42、utives 10%19%42%29%Digital account opening23%36%19%22%Mobile wallet9%44%27%20%Fraud/risk management26%41%26%7%Data breach/ID protection services59%34%5%2%Subscription management services59%32%8%1%Bill negotiation services81%18%1%Cryptocurrency investingSource:Cornerstone Advisors December 2020 Janua

43、ry 2023 Digital Banking ReportAlready doing this with a fintech partner Somewhat interested Very interested Not interested“The use of outside solutions can be a major advantage due to the speed of implementation and scalability of solutions.”New Account Abandonment RatesThe biggest negative impact o

44、f a poor digital account opening process is the abandonment rate of people trying to open a new account.According to Q3 2020 data from banking consultancy Cornerstone Advisors,only 14%of banks and credit unions in the US said that their abandonment rate for digital applications for deposit products

45、was less than 10%.A quarter of the same firms said they were seeing rates higher than 50%.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 10CHART 4:CHART 4:DIGITAL ACCOUNT OPENING ABANDONMENT RATES BY PRODUCT TYPE%of respondents in

46、each groupSource:Cornerstone Advisors September 2021 January 2023 Digital Banking Report50%13%36%33%18%Unsecured Lending Products13%28%44%15%Secured Lending Products25%34%28%14%Deposit ProductsThe challenge was even more acute for larger FIs(those with more than$10 billion in assets).Approximately a

47、 third of larger institutions saw 75%or more of their digital deposit applications abandoned.Reasons for this level of abandonment included:A lengthy application process,Complex forms,The requirement to come to a physical facility for one or more steps of the process,And,requests for too much inform

48、ation.Research by the Digital Banking Report found similar abandonment rates,especially with organizations where digital account opening processes exceeded 10 minutes in length or where the consumer needed to provide insight that was not readily available.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUN

49、T OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 11What Customers Want With DAOMore consumers than ever are opening checking accounts online,raising the pressure on traditional financial institutions(FIs)to create improved digital account opening(DAO)experiences.Insider Intell

50、igence used a scorecard of 35 emerging mobile bank account opening features to determine which features consumers find most valuable.According to the research,the most desired digital account opening features were:1.Ability to easily set up direct deposit.2.Push notification updates on progress with

51、 the application process.3.The ability to chat with a live agent if needed.4.Providing a list of information needed at the beginning of the process.5.Simplicity of digital account funding.CHART 5:CHART 5:MOST IN-DEMAND MOBILE ACCOUNT OPENING FEATURESSource:Insider Intelligence January 2023 Digital B

52、anking Report1Account FundingSET UP DIRECT DEPOSIT39%2Updates and Outcomes GET PUSH NOTIFICATION UPDATES ON APPLICATION36%3Customer SupportCHAT WITH LIVE AGENT32%4Expectation SettingSEE LIST OF REQUIRED INFORMATION31%5Account FundingFUND ACCOUNT WITH PAYMENT APP30%Note:Respondents were asked to rate

53、 each features importance on a Likert scale of 1-5,where 1=”not valuable”and 5=”extremely valuable.”BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 12CHART 6:CHART 6:MOST IN-DEMAND MOBILE ACCOUNT OPENING FEATURES BY CATEGORY%of chec

54、king account openers selecting“extremely valuable”Source:Insider Intelligence January 2023 Digital Banking ReportAccount SelectionExpectation SettingView incentives and promo codes27%See list of required information31%View benefits of having multiple accounts25%See guide of steps completed/remaining

55、25%View customer service reviews and ratings23%See how long opening the account takes25%Account FundingApplication SubmissionSet up direct deposit39%Save and continue30%Fund account with payment app30%Upload documents30%Fund account with debit card29%Pre-fill details with mobile banking login30%Cust

56、omer SupportUpdates and OutcomesChat with a live agent32%Get push notification updates on application36%Make in-branch appointment24%Discuss application via live chat21%Request call from agent23%Set up in-branch application meeting20%Note:Respondents were asked to rate each features importance on a

57、Likert scale of 1-5,where 1=“not valuable”and 5=“extremely valuable”BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 13The biggest performance gap between what is desired and what is being delivered by legacy financial institutions w

58、as seen in the areas of direct deposit setup and the ability to fund the account with a digital payment app.Meeting these digital account opening expectations is imperative since most account openings will likely be via mobile in the future.According to Insider Intelligence,57%of US adults who had o

59、pened a checking account in the past 12 months did so on mobile devices.Legacy financial institutions are focusing efforts on improving the digital new account opening process.While progress has been made,there is still much to be done,especially in updating back-office processes to enable fast and

60、seamless top of glass experiences.It is expected that the combination of decreased digital account openings by fintech firms and improved opening experiences by traditional banks and credit unions will result in more digital account openings being done at legacy banks than fintech firms within the n

61、ext two years.According to Insider Intelligence,it is also expected that for both digital-only and incumbent providers,priorities will shift from“user growth at all costs”to metrics that tie back to the bottom line such as primary bank status,average deposits,and potential for relationship growth.7

62、Imperatives for Transforming Online Account OpeningFind out the ways you can address some of the specific concerns that can affect your customers account opening experience.Download the free copy of your white paper.Link:https:/ PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transform

63、ed White Paper.All rights reserved.PAGE 14Are banks and credit unions keeping up with consumer demandswhen it comes to digital banking offerings?With more than 50%of consumers using only digital channels for most of their banking,ex-pectations are outpacing experiences at most organizations.This is

64、especially true with the new account opening process.Status of Digital Account OpeningThe financial services industry has been working hard to deliver a better experience on digital channels.Building on an early foundation that focused more on cost savings than customer experiences,most banking inst

65、itutions now realize they must improve delivery of financial services on digital channels to keep pace with tech organizations like Google,Amazon,Facebook,and Apple(GAFA).For the past several years,the financial services industry has talked a great deal about the digital consumer segment.These custo

66、mers use a variety of channels(both digital and physical),with the goal of most financial organizations being to provide similar experiences across channels,and to allow for travel between channels to be seamless.This segment of omni-channel customers has been significantly shrinking over the past s

67、everal years,being replaced by the“omni-digital”customer who only uses digital channels.The size of this segment is greater than 50%,with implications for branching strategies,investment prioritization,staffing models,etc.If the access to banking will be through mobile phones,computers,and tablets f

68、or most customers,how does this shift impact product development,product sales,customer service,design of mobile banking applications,etc.?The Impact of DemographicsAs would be expected,consumers in the 18-to 24-year-old bracket are the heaviest users of mobile banking,with more than 80%of smartphon

69、e owners in this demographic segment using mobile banking.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 15As reinforced by many channel use studies,the penetration of mobile banking decreases as age increases.However,more and more

70、 smartphone owners in the 65+age group report that they use mobile banking,especially since the pandemic.While income level is positively correlated to digital banking use,affluence doesnt have as much of an impact on the behavior of the youngest and oldest consumers.This means determining channel p

71、reference goes beyond simple demographics(age and income),requiring deeper analysis of consumer behavior,product use and life stage.For many consumers,the use of channels is based on the type of transaction and geographic location.Bottom line,for a financial institution to deliver against its custom

72、ers needs,it requires very sophisticated analytics and personalization capabilities.The Digital Experience MattersEven with perfect data,analytics,and targeting,the digital consumer is very aware of options and can quickly shop for the digital experience that meets their needs for any financial serv

73、ices solution.For instance,if a digital-first consumer is in the market for a loan,and their primary financial institution proactively connects with them with an offer,the digital consumer still does their due diligence.If the application,approval,and funding is not seamless,the customer will look e

74、lsewhere.The digital customer demands experiences that are easy to use.Prospects will appreciate the ability to do a quick click on an email offer link,but theyll frequently abandon the process if there are too many steps.They know there are options.What About Branches?Branches continue to be an imp

75、ortant channel for a variety of services.Less than half of those surveyed said theyd prefer to open a new deposit account or apply for a new loan in person(the percentage was closer to two-thirds only 5 years ago).Moreover,less than 20%said they wouldnt open an account with a financial institution t

76、hat didnt have local branches.While the frequency of branch visits has been declining,some interesting aberrations come to light in the use of physical facilities.For instance,many Millennials prefer to visit a branch to open a new account,learn about budgeting,understand retirement options,and to u

77、nderstand and apply for a mortgage.When looking at the importance of branches,financial organizations need to consider the higher cost to serve in a bricks and mortar facility.On average,branches cost banks$4.00 per transaction.On the other hand,online(PC)and mobile banking cost$0.09 and$0.19 per tr

78、ansaction,respectively.This comparison makes the big BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 16assumption that support staffs will be reduced when the digital shift happens(an assumption that could be argued).In addition,omn

79、i-digital customers also use more services and provide more revenue.Research indicates that consumers who use self-service channels(mobile,online,tablet)also report a greater need for a range of financial products.Responding to the Digital ShiftThe trend toward greater digital interaction is strong

80、and growing.As an industry,we need to realize that many transactions being done in physical channels are done so because users have no choice.As shown in this report,many banking organizations do not provide end-to-end digital engagement options.From new account opening to customer support,the digit

81、al customer is forced into a channel they may not prefer.To keep pace with consumer expectations,banks and credit unions will need to do a much better job of:Selling to buyers at the time,place,and channel they prefer.Using digital strategies to make products easier to use(think one-click).Offering

82、personalized products and services that are both timely and relevant.Moving to a real-time delivery of information that can help consumers manage their finances.While the strategies and priorities of each financial institution may be different based on their digital maturity,all organizations must s

83、peed up their digital transformation efforts to keep up with the rapidly changing expectations of the digital consumer.End-to-End Mobile Account OpeningFinancial institutions that offer a true mobile experience enjoy a competitive advantage in todays marketplace.With all the attention paid to mobile

84、 banking,mobile apps and payments a reflection of the need to“allow consumers to bank where they are”it is concerning that more than 30%of financial institutions still do not offer the ability to open new accounts digitally.With the account opening process being one of the very first experiences som

85、eone has with your brand,it is important to ensure that it creates a positive and lasting impression.As the Millennial generation comes of age and forms the primary segment for new customer acquisition,mobile optimization must be a top priority for the industry.Millennials are digital natives,so the

86、y prefer mobile channels vs.traditional channels that tend to frustrate their mobile-first lifestyle.They dont want to visit a branch or contact the call center if it can be avoided(who does?).“As the Millennial generation comes of age and forms the primary segment for new customer acquisition,mobil

87、e optimization must be a top priority for the industry.”BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 17CHART 7:CHART 7:STATUS OF CURRENT DIGITAL ACCOUNT OPENING PROCESSWhat is the status of your digital account opening process(bu

88、siness and consumer?)We are:Source:Digital Banking Report Research January 2023 Digital Banking Report8%23%56%13%No digital account opening for either consumer or business depositsPlan for digital consumer deposits in one year Full digital with consumer deposits;with plans for business deposits in o

89、ne yearFull digital with both consumer depos-its and business deposits The good news is that many traditional financial institutions are transitioning their mobile account opening processes within branch operations.Using digital account opening functionality within the branch speeds the process for

90、the customer desiring branch engagement and also assists in the final onboarding process.Note:In all previous research done by the Digital Banking Report,the actual implementation of initiatives within a desired time-frame(such as within 12 months)falls far short of what organizations believe will o

91、ccur.CHART 8:CHART 8:STATUS OF DIGITALIZING IN-BRANCH ACCOUNT OPENINGSWhat is the status of digitalizing in-branch account opening for your customers?Source:Digital Banking Report Research January 2023 Digital Banking ReportAlready in place Will be in place within 12 monthsWill be in place 1-2 years

92、 No plans at this time10%23%28%39%BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 18FIs Improving Digital Functionality Within DAOFinancial institutions must go beyond simply enabling a customer to open a new account digitally.There

93、 also needs to be the ability to onboard,fund,set up ancillary services and support engagement as part of digital account opening.The good news is that our research indicates progress is being made by financial institutions as they focus on digital functionality.The ability to save and resume as par

94、t of the progression of opening a new account digitally has improved significantly since our research 3 years ago.This was most likely in response to the pandemic.The same can be said for the ability to fund a new account without using a brand.One area that requires greater focus is the ability to e

95、ngage with a chat bot or digital human as part of the new account opening process.The advantages of digital engagement during the new account opening process cant be overemphasized,since many consumers have questions that could lead to abandonment of the process if a quick inquiry option is not avai

96、lable.CHART 9:CHART 9:CURRENT FEATURES OF DIGITAL ACCOUNT OPENINGWhat features of digital account opening do you offer?Source:Digital Banking Report Research January 2023 Digital Banking Report65%Digital post-account opening onboarding59%Digital funding58%Save and resume functionality47%Digital dire

97、ct deposit set-up28%Live chat during process23%Push notifications on status of loan application21%Universal digital app integration between alternative productsBEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2022 Banking Transformed White Paper.All rights reserved.PAGE 19Going Beyond the Basic

98、sAs financial institutions are extending digital functionality as part of new account opening,several also see the benefits of providing digital account maintenance beyond the initial contact with the customer.This maintenance functionality can include both a deeper onboarding and communication capa

99、bility as well as managing customer inquiries post account opening.This extended digital functionality can offload existing back-office bottlenecks that currently lack seamless integration from the customers perspective.Moving more of these traditional functions to digital channels will reduce costs

100、 while also improving customer experiences.CHART 10:CHART 10:OPINION OF EXTENDING DIGITAL ACCOUNT OPENING TO ACCOUNT MAINTENANCEAs per industry trends,some banks are extending the digital account opening system to account maintenance as it provides a single system for branch officers to handle any a

101、ccount-related activities.What is your take on this trend?Source:Digital Banking Report Research January 2023 Digital Banking Report21%32%45%2%Must have Highly effective Good to have Doesnt have much impactBEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All

102、 rights reserved.PAGE 20CHART 11:CHART 11:BENEFIT OF PROVIDING CONSISTENCY IN LOAN AND DEPOSIT APPLICATIONS Do you see a benefit in providing a consistent experience for loan and deposit applications for customers?9%23%67%Source:Digital Banking Report Research January 2023 Digital Banking ReportAbso

103、lutely Good to have Doesnt have much impact No benefit at allPerformance Gap with Digital Relationship InitiationThere is a significant gap between what financial institutions know they must do related to digital account opening and what they have been able to achieve.Our research found that more th

104、an two-thirds of financial institutions believed that providing a consistent digital experience for deposit and loan initiation process was an absolute necessity.Despite this high ranking,very few organizations have created an strong omni-channel experience that is the same for deposits and loans.BE

105、ST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 21Onboarding should be as flexible and frictionless as possible.When customers see the speed,ease,security,and convenience you demonstrate during onboarding,their positive perception of

106、your company and your brand as well as the likelihood they will become a customer is reinforced.Steps to Improved Digital Account OnboardingIn the banking industry,customers are at the center of business disruption,and organizations are scrambling to meet their demands.Its easier than ever for custo

107、mers to shop for competitive offers,and surveys show an increased willingness to switch between financial service providers.Your customers now expect the same convenience and contextually relevant communication from your organization that they enjoy in other areas of their lives.They hold your organ

108、ization to equally high standards for premium digital experiences.Success lies in setting your organization apart with advanced onboarding functions like mobile-enabled digital processing and the ability to gain insights into real-time customer data.Maximize Your Onboarding InvestmentMany banks use

109、multiple core,legacy platforms in their struggle to deliver more consistent customer experiences,but these outdated and disconnected platforms just cant keep up.Perfecting the onboarding experience requires more than just rethinking your business processes.To succeed,your underlying technology must

110、support continued innovation of front,middle and back-office processes.Improving these processes makes it possible to provide the experiences customers want.In addition to end-to-end bank process improvement,the onboarding solution you choose must have the flexibility to integrate with existing syst

111、ems.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 22The best place to start to improve your onboarding process is to assess where your organization is today.Use the questions below to see how your onboarding process compares to ba

112、nking industry benchmarks within this report.What is Your New Customer Acquisition Cost?Acquisition costs for banking customers vary widely.Financial institutions can invest anywhere from a few hundred dollars to more than several thousand dollars for each client they onboard.Whats the average cost

113、for your organization to acquire a new customer?What is the Average Time to Onboard a New Customer?Onboarding new banking customers can require hours,days or weeks,depending on process capabilities.On average,how long does your onboarding process take?What are Your Business Bottlenecks?People,proces

114、ses,underlying systems,or data cause business bottlenecks.Prioritize who or what causes bottlenecks in your organization,with 1 being the most likely cause,and 4 being the least likely cause.Is it the people,process,systems,data,or dont you know?Where Does Your Customer Start Their New Account Openi

115、ng?Primary channels for bank onboarding include a mix of computer,mobile,in-person and paper.What channel do most of your customers use to begin their onboarding process the computer,mobile,in-person,paper or a combination of the above?Where Does Your Customer Complete Their Onboarding Process?Now,i

116、ts time to determine what channel is used by most of your customers to complete their onboarding process.Is it the same or different than where they started?What is Your Customer Satisfaction Rating for Onboarding?Getting an accurate measurement of customer satisfaction is a key goal for most financ

117、ial institutions.Leading financial organizations use analytical tools such as a Net promoter score,straight-through processing rates,and not in good order(NIGO)resolution to measure customer satisfaction.On a scale from 1-10(with 10 being high),how would you rate your organization in its ability to

118、assess customer onboarding satisfaction?BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 23Seven Steps to Improved Digital OnboardingNow that youve assessed your existing onboarding process,you should have a good idea of where your o

119、rganization is on the journey to digitization.Use the seven steps in this section to start developing a successful digital onboarding strategy referencing the benchmarks within this report.7Step 1:Curb Customer Attrition RatesResearch reveals a global increase in overall customer willingness to chan

120、ge banks.This is particularly true for the Millennial segment,who have only known a digital world.They understand how easy it is to switch loyalties and they dont see any reason to treat your bank differently than another service provider.Given this pressure to reduce attrition rates,the onboarding

121、process is that much more pivotal.Studies show that when your customers decide to leave,its usually early in the relationship.In fact,43%of those who had low satisfaction during new account opening indicated they will“definitely or probably”switch banks as a result.Its important for your customers t

122、o see onboarding as a single process,no matter how many channels they use.To avoid losing customers,your onboarding strategy must offer leading-edge experiences that:Are consistent across multiple channels.Avoid repeatedly asking customers for the same information.Are near-real time and reliably acc

123、urate.Keep customers informed.Give your customers the choice of interacting via any channel,at any time.Customers who experience“anywhere”onboarding with consistent information across channels are reassured that this convenience will extend to their day-to-day experience.As our research found,financ

124、ial institutions still require duplicate entry of information,even when a customer is buying a new product from the same financial institution.To reduce frustration,customers should never have to enter information more than once,especially when switching from one channel to another.Large financial o

125、rganizations struggle to arrive at“one version of the truth”.Ensuring information is up-to-date and in sync across channels reassures customers that they have anywhere-access to always-accurate data.Step 2:Reduce New Customer Acquisition CostsOnboarding costs can vary widely from bank to bank,but th

126、eres no doubt that reducing these costs can make a big impact on your bottom line.Customers are more likely to stay once you acquire them.But to get there,banks often spend anywhere from several hundred to thousands of dollars for each customer gained.Learn how Newgen automated account opening proce

127、ss at Wilson Bank&Trust and reduced their online account opening turnaround time from 30 minutes to 5 minutes!Link:https:/ PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 24Although many bank legacy systems function well,other systems te

128、nd to be inefficient,inflexible,and expensive to support.A recent report shows that up to 90%of technology budgets are being used to support these aging systems.Thats a big investment for a solution that may not be able to meet future technology needs.In addition,manual onboarding can cost up to twe

129、nty times more than automated systems.If you want to reduce new customer acquisition costs,begin by digitizing your paper-based processes.Start with those processes that require your customers to deliver,fax or mail physical paper forms.Reduce the cost of new customer acquisition even more by provid

130、ing:A single-vendor,integrated platform that flexes to meet new requirements without disrupting customer transactions.Multichannel onboarding capability(especially mobile)that provides pocket-friendly banking.Onboarding transparency that reduces the need for customer support calls.The other side of

131、cost reduction is boosting revenue because of onboarding.For example,when you provide an easy way for customers to switch to your bank from other banks,average new account profitability can increase by as much as$212 per year according to research.Step 3:Accelerate Average OnboardingWhen onboarding

132、takes too long,your customers will seek other solutions.In fact,at some banks customers abandon up to 90%of new account applications prior to their completion.So,what slows down onboarding enough to frustrate customers?You guessed it:legacy systems that still require manual intervention and paper-ba

133、sed interactions.You can reduce the time it takes to onboard new banking customers by:Eliminating disconnected,manual processes in favor of integrated,automated processes.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 25 Offering c

134、ustomers their choice of onboarding channels.Providing customers with process transparency.The first“easy win”for shortening onboarding time is to use automated,versus paper-based,processes.This change alone greatly reduces onboarding time for your customers.For best results,your automated processes

135、 should leverage an integrated platform instead of multiple,separate tasks and apps.Multiple studies show consumers want frequent,quality communications from their FIs,especially during the early days of the relationship.The customer who has just purchased a product or service with your organization

136、 is the most likely customer to expand their relationship.They want guidance and recommendations for how to make the relationship more valuable.J.D.Power found that customer satisfaction increases as the number of communications increase.Our research found that one-third of institutions that have on

137、boarding programs only connect with their new customers 1-2 times.Only 16%of the organizations with onboarding programs indicated that they contacted their customers 7 or more times(a level found to be optimal by JD Power).Step 4:Identify and Eliminate Business BottlenecksMany organizations dont hav

138、e visibility into where bottlenecks exist or whats causing them.Without full visibility,you cant see the gaps in your onboarding process.Leading onboarding platforms help you pinpoint processes and tasks that need to be streamlined.For example,nearly one in four customers say its too difficult to tr

139、ansfer their other accounts,such as mortgages,to their new financial institution.When your onboarding process gives them easy ways to add other accounts and services,they are much more likely to become active customers who use your institution as their primary bank.BEST PRACTICES FOR SUCCESSFUL DIGI

140、TAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 26Though it may be tempting to put client onboarding in the“important but not urgent”category of priorities,this is a mistake,because onboarding can be a make-or-break moment in every customer relationship.To eliminate

141、 a bottleneck caused by people,review each persons role and responsibilities.Meet as a group to learn where process gaps are and get the team to agree on the specific changes that need to be made to correct the problem.If it appears that the process is the problem,view the entire process from the ou

142、tside-in,starting and ending with the customer experience.This way,youre not forcing customers to comply with the limitations of existing processes.Instead,youre showing them what could be.For an issue related to systems,implement a flexible,scalable IT platform that supports more than just onboardi

143、ng.Systems stay in sync,and you can customize the user experience to keep up with customer expectations.Finally,data issues are usually caused by legacy silos.Housing information in multiple silos usually ends up with different versions of the same document(and data).Consider creating a single place

144、 to store client data and let everyone know this is the single,reliable source.Step 5:Let Customers Choose Their ChannelsWhen customers have positive experiences engaging with your organization,they tend to buy more of your products.Therefore,you want to make it easy for them to bank anytime,using a

145、ny channel or device,in the ways they prefer.Offering multiple channels such as PC,mobile,in-person,paper,and call center helps you increase customer satisfaction and grow your business.Based on recent surveys,most customers stated they used multiple channels at least weekly.No matter what the chann

146、el mix may be,frictionless onboarding is the goal.That means giving customers the flexibility to set aside their onboarding process in one channel and subsequently pick up where they left off in another channel.BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Pape

147、r.All rights reserved.PAGE 27Step 6:Measure Customer Satisfaction During OnboardingA critical measurement of onboarding success is completion.Most financial organizations see a completion rate of about 30%for new account opening and 10%for loan applicants.This is even worse for mobile completion rat

148、es.Streamlining onboarding can improve completion rates,as well as provide other insight into customer satisfaction.To measure and monitor your onboarding process,you need a platform that provides information not only about past performance,but also about current processes and how to improve them.Lo

149、ok for:Customizable dashboards that provide key performance indicators and metrics.Reporting and analytics that are tailored to facilitate faster,more informed decision making.In this way,you can engage and learn from your customers in near-real time,using their feedback to continue to refine the on

150、boarding process.Step 7:Gather Resources and Compare SolutionsCustomer onboarding is just one part of a companys effort to digitize from end-to-end.Plan to make sure you have the best platform in place,as well as the team support you need to improve the onboarding experience for your customers.Ident

151、ify individuals within the organization who have the capability,time,and talent to help you develop and implement your plan.Make sure to include management from relevant business groups in your onboarding team.Leverage this team to help you trace where problems tend to occur,where SLAs exist,where c

152、orporate governance comes into play and where fines have been assessed.Final WordsProviding a fast,frictionless customer experience is the goal of any organization hoping to acquire and keep customers.From opening a new account,to increasing engagement and sales during the onboarding process,it is t

153、hose first moments of interaction between you and your customer that are the most critical and can make or break the new relationship.Now more than ever,digital transformation is the way to meet consumer demands for anytime,anywhere engagement.And you cant talk about digital transformation without t

154、alking about mobile technology given the pervasive nature of mobile in our daily lives.As more organizations are seeking to improve digital banking satisfaction,reducing costs while simplifying processes for the consumer,this research provides a roadmap for implementation and setting key performance

155、 indicators(KPIs).More importantly,we hope that banks and credit unions will use the insight in this report to act on developing mobile account opening,mobile onboarding and digital engagement tools.“Identify individuals within the organization who have the capability,time and talent to help you dev

156、elop and implement your plan.Make sure to include management from relevant business groups in your onboarding team.”BEST PRACTICES FOR SUCCESSFUL DIGITAL ACCOUNT OPENING 2023 Banking Transformed White Paper.All rights reserved.PAGE 28About the AuthorNamed as one of the most influential people in ban

157、king and a Top 5 Fintech Influencer to Follow,Jim Marous is an internationally recognized financial industry strategist,co-publisher of The Financial Brand and owner and publisher of the Digital Banking Report.As a sought-after keynote speaker,author and recognized authority on disruption in the fin

158、ancial services industry,Jim has spoken to audiences worldwide.He has been featured by CNBC,CNN,Cheddar,the Wall Street Journal,the New York Times,the Financial Times,the Economist and the American Banker.Through his podcast,Banking Transformed,Marous provides listeners with an opportunity to hear a

159、bout the organizational impact of digital transformation.With new shows each Tuesday,Jim interviews his guests with the objective of digging deeper into the opportunities and challenges facing banking and other industries.You can download Banking Transformed on The Financial Brand podcast page or on

160、 your favorite podcast platform.You can also follow Jim Marous on Twitter and LinkedIn or visit his professional website.Newgen Account Opening Software Newgen,with three decades of experience of working with over 200 financial institutions,understands their industry-specific challenges.Newgens Acco

161、unt Opening Software,built on NewgenONE-unified,cloud-based digital transformation platform,caters to the onboarding needs of banks,credit unions,pension funds,and other financial institutions.The software helps financial institutions to onboard customers for all banking products,including deposits,

162、checking accounts,and retail,commercial,or mortgage loans.The software is focused on usability and configurability.Usability ensures that the online account opening interface is simple,comprehensive,and intuitive,allowing applicants to stay on the application or to save intermittently and come back for completion.Configurability helps banks to stay current and adapt to a dynamic market and the changing needs of customers.