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The Key to Growing Deposits is Overcoming the Dreaded 48%

The Key to Growing Deposits is Overcoming the Dreaded 48%

Growing deposits is the top priority for most credit unions and banks this year. In fact, many are offering attractive incentives, such as high-interest checking products, fee waivers and even hard cash to open an account. While this may be an effective way to entice new members and customers, it does not address the underlying problem that makes growing deposits so challenging in the first place — digital friction.

Recent research from Bain & Co. shows that 48% experience friction during account opening. It’s not an ideal way to start off a new relationship. Even worse, it drives nearly 1 in 4 to another financial institution.

That’s because of the 48% who experience friction, Bain & Co. found that nearly half — also 48% — give up opening an account and take their business elsewhere. During a time where financial institutions need to grow deposits, that’s a huge 23% deficit to start off with. 

But what if banks and credit unions could lower that abandonment rate and keep 23% from going elsewhere? Shift them from the loss to the win column. The key is in making the account opening process as quick and easy as possible.

Automating identity verification and qualification steps, for example, can substantially compress start-to-close times while cutting complexity for members and customers. An account opening solution that can automatically pull credit scores and other institutional criteria saves a tremendous amount of time and effort.

From the institutional side, credit unions and banks have to ensure compliance across multiple regulations and also assess risk factors. Automating Know Your Customer (KYC) and Know Your Business (KYB), with the ability to understand local and state requirements can accelerate the process. 

Digital account opening is a great convenience, but only if it remains simple and timely. Losing nearly 1 in 4 before they even get started is simply too high a deficit when the main objective is to grow deposits. 

ATTUNE’s account opening solution for new accounts and credit cards is helping a growing number of financial institutions save time and money through its highly efficient process. Better yet, ATTUNE has reduced the account opening time down to 5 minutes, compared to an hour or longer. In addition to the strong efficiency benefits, that means ATTUNE customers are keeping more business in-house by overcoming the dreaded 48% who go elsewhere for their banking needs. Cutting that attrition is an effective strategy to grow deposits.