Emphasis on digital banking demands changes to onboarding rules
As more consumers are initiating bank and credit union relationships on digital channels, the need for a strong digital onboarding process has never been more important. Without a focused attention on building a quality relationship from the outset, revenue and loyalty are in jeopardy.
The accelerated shift to digital channels for the opening of new relationships in banking changed many of the components of value. No longer was the new account opening experience driven by direct human interaction. Instead, consumers selected where to do banking based on the ease of the process and the speed of engagement.
While many organizations would love to go back in time and encourage branch-based openings once again, consumer behavior is indicating that the past will not be revisited. As a result, financial institutions must focus on the post-sale onboarding process, leveraging data and analytics to drive a digital relationship deepening process that reflects real-time consumer needs as opposed to organizational product objectives.
New Digital Customers Have Lower Initial Value Than Branch-Based Customers
Novantas research found that while banks and credit unions have done relatively well in shifting new customer origination to digital channels, the size of initial balances and longer term value of the relationship have often suffered. For brand-new accounts, Novantas found that only 30% of digital accounts were funded with more than $100, compared to 70% of branch-originated accounts.
continue reading »
