Online-only banks threatening traditional banks and credit unions

Most Americans now shop online for new financial accounts, including loans and deposits. They either head straight to their primary financial institution’s website, or they Google around to review offerings from multiple institutions. While everyone in the financial industry seems to intuitively accept this fact, most banks and credit unions are dropping the ball when it comes to helping online shoppers, particularly at that critical final stage when people want to actually open an account or apply for a loan.

According to Mark Riddle, Director/Research and Content Delivery at BAI, consumers spend an hour or more shopping for financial services, but they can’t finalize the process digitally.

Riddle says there are still major shortcomings when it comes to the digital experience most banks and credit unions deliver. Among the many weak spots in banking providers’ digital capabilities, many cannot track how consumers shop for products on their own websites.

Riddle is especially critical of the online account opening process in the retail banking sector. Most institutions cannot accommodate those who want to open an account digitally.


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