Removing Friction to Boost Deposits: Simplifying the Account Opening Process
In today’s competitive banking landscape, where loyalty can hinge on the smoothness of the account opening experience, reducing friction is not just a convenience—it’s a strategic imperative. Consider how nearly 48% who encounter difficulties during the onboarding process abandon ship and seek out a competitor. That’s a staggering statistic that underscores the importance of making digital account opening as seamless as possible.
The Impact of Friction on Retention
Growing deposits is a top priority for most credit unions and banks, who simply can’t afford to squander opportunities. New account openings represent one of the best ways to increase deposits. Yet many members and customers encounter complex applications, ambiguous options and unclear instructions. This friction leads to frustration. Every additional step or confusing question increases the likelihood that they’ll abandon the process altogether.
For financial institutions, this scenario represents not just a lost opportunity to onboard a new member or customer, but also the potential loss of future deposits and long-term relationships. Simplifying the onboarding process isn’t just about reducing abandonment rates; it’s about setting the right tone for the entire relationship, starting with the very first interaction.
Automating Verification and Compliance
One of the biggest hurdles in account opening is navigating regulatory requirements while ensuring a smooth user experience. Financial institutions must comply with stringent regulations, such as Know Your Customer (KYC) and Know Your Business (KYB), which require capturing and verifying identification and other critical data.
Automating these processes can be a game-changer. Imagine a solution that automatically verifies identification documents, pulls credit scores and even allows members and customers to verify their identity via a quick selfie. This not only speeds up the account opening process but also enhances security and compliance, mitigating risks associated with manual data entry and verification.
Competitive Advantage Through Simplification
Financial institutions that prioritize simplicity in their account opening process gain a competitive edge in two significant ways:
- Retention: By making the onboarding experience straightforward and user-friendly, institutions retain a larger percentage of members and customers who might otherwise seek out simpler alternatives at competitor institutions.
- Magnetic Growth: In an era where digital transformation is reshaping consumer expectations, institutions that offer a seamless onboarding experience are more likely to attract those dissatisfied with cumbersome processes at traditional, lower-tech institutions.
Reducing friction in the account opening process is not just about operational efficiency; it’s about creating a member- and customer-centric approach that resonates with today’s digital consumers. By simplifying complex applications, removing ambiguity and automating verification processes, financial institutions can significantly enhance retention and attract new deposits.
As the financial services landscape continues to evolve, the institutions that prioritize seamless onboarding experiences will undoubtedly reap the rewards of increased satisfaction, loyalty and ultimately, higher deposits. So, why not start by ensuring your institution offers a frictionless account opening process that keeps customers engaged from the very first click? It’s not just a step towards efficiency; it’s a strategic move towards sustainable growth and competitive advantage in a rapidly changing industry.
ATTUNE can help you simplify your account opening process and grow deposits. Find out how: https://calendly.com/attune-ak/discovery-demo
