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Is it time for Account Opening 2.0?

Traffic Jam

Driving in New York City will be so much easier when they finally finish repairing the FDR drive. There is always a section being dug up, patched or repaved, slowing traffic to a painful snarl. But as the road crew finally nears completion, new potholes at the other end are already wide enough to swallow small cars and bring traffic to a standstill. It’s already time to start fixing the 10-mile highway along the East River anew. This vicious cycle never ends. 

Credit unions and banks face a similar challenge — keeping up with the dynamically evolving expectations of consumers. Once delighted by the ability to check their account balance online, today’s savvy consumers want to digitally open accounts, apply for loans and deposit checks via their mobile devices.

To keep pace, many financial institutions have made significant investments in technologies aimed at offering virtually anything a branch can do online. In fact, financial institutions have more than tripled their spend on digital tech since 2021, according to Cornerstone Advisors, and that number is only trending upward. Yet there are few, if any, areas in financial services that haven’t already been digitalized. Are we finally approaching the end of the road?

Just like the dreaded repairs on the FDR drive in New York, there is no end in sight for the digital transformation of financial services. Yesterday’s fresh, cutting-edge technologies have quickly become legacy systems creating roadblocks. The digital account opening solutions that took just 20 minutes to complete in 2019, for example, are now driving customers away. Today, by the 5 minute mark, 60% have already given up, according to The Financial Brand, seeking an easier solution at another credit union or bank.

Replacing legacy digital technologies with current account opening solutions can help grow deposits efficiently, keep more business in-house and stop the exodus to institutions that offer a better digital experience. While it might feel like your team just implemented an account opening solution recently, chances are it’s in urgent need of an upgrade, just like that stretch of the FDR drive paved just 2 years ago. In fact, the pothole will only get deeper and wider the longer it’s not fixed.

To maximize deposit growth, credit unions and banks should continually assess the account opening process, closely aligning to consumer expectations. While you are at it, make online lending easy and take full advantage of your digital experience to maximize wallet share. 

Find out how ATTUNE makes account opening quick and easy — in under 5 minutes — to help credit unions and banks meet consumer expectations and even get ahead for once. www.getattune.com/digital-onboarding/