The pathway from digital account opening to PFI
What does your onboarding experience look like before your account holder reaches your digital banking solution?
If the ideal onboarding of new account holders and originating new accounts could be summed up in one word for 2024, that word would be “speed.” While many banks and credit unions offer a digital channel for digital account opening and loan origination, two in five banks still run their core banking processes on legacy systems, according to 2023 research by the ABA Banking Journal.
Recent research by ABBYY, reported by OneSpan in June 2023, looked into trends in account origination, and found for 90 percent of financial institutions, “friction during the digital account opening process” caused abandonment rates of 40 percent, and that’s on the low end. Respondents cited too many manual steps, the process being too long and identity verification snags.
Yet, a recent report, “The State of Digital Sales and Engagement in Banking” by Jim Marous, reveals as few as 30 percent of digital banking apps allow customers to open a new checking account, apply for a consumer loan, or manage finances with speed.
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