Digitization of Bank Account Opening
Discover how Digitization of Bank Account Opening process transforms the customer experience enabling them to bank where and when they want.
Digital Revolution of banking experience
Over the past few years, digital revolution is changing the lives of all customers and banking has seen a high surge of digital channels take over the traditional channels. 61% of internet user’s bank online and 35% of mobile user’s bank using their mobile phones.
Where customers find the product Vs Where they buy?- Compelling need for a digital strategy to bridge this gap.
Majority of the customers prefer digital channels for the basic transactions and maintenance of their existing accounts. Research indicates that 70% of the customers shop for products online while only 30% via traditional channels. However only 16.3% of the customers end up opening accounts through digital channels. Rest prefer traditional in branch account opening methods as it gives the comfort of person to person interaction and availability of staff to assist and complete the on-boarding.
It is increasingly becoming imperative and compelling for the banks to adopt a digital strategy that addresses the changing customer behavior and enable them with a seamless omni-channel experience. A digital strategy that encompasses both “Brick and Mortar” and “Click and buy” models effectively will be a game changer in the digital banking realm.
Digital Account Opening Solution
Believe that an integrated account opening solution across Online, Mobile and Branch around a core process centric account opening solution is critical from consistency and unified customer experience point of view.
Below diagram illustrates Account Opening solution as a set of key features that can be grouped under Core, Core + and Extended capability.
Comprises the primary functional features involved in an Account Opening process
Simplified Process centric Guided workflow and an interactive UI that gives the customer and the staff a consistent multi-channel experience. Enables the users to quickly adapt to the new optimized processes, compliance and the technical advancements.
Ability for Application Data Capture –Existing customers signing up for new products would have their applications auto-populated with personal details already available with the bank to avoid the need to re-enter the details.
Qualify applicant eligibility through automated credit and fraud checks
Identity (ID) proofing of the applicant is done by asking a set of questions based on his/her personal and financial history that only the applicant is likely to know.
Core + Capabilities
Comprise features that provides added efficiency and seamless user experience on top of the primary core functions. These are essential to reduce waste and bring in process efficiencies.
Electronic Document Delivery – Electronic delivery of documents relevant to the account.E.g., Jurisdiction/State specific product disclosures, updates on the account opening status, contract documents etc.
Document upload and E-storage – Solution provides the ability to upload scanned, digitally signed documents. Also enables storage of all uploaded documents and other customer correspondences with ease of retrieval and adhering to the retention policies based on document types.
Account Maintenance – Capability to perform account /profile update maintenance activities and account closure.
Accessibility – Compatibility across multiple devices, form factor and browser
Back office processing– Streamlined back office processing with abilities to
Prioritize high risk applications that are ready for review
Enable staff to seek additional/pending documents from the customer
Dynamic work allocation
3’rd Party Data Source integration for NAICS Lookup, Credit history look up and Fraud checks.
Comprises features that extend the Account opening beyond core capabilities by providing ability to measure and optimize the process, increase customer delight, ability to know and service customer better, cross and up sell product offers, increased synergy in Branch and back office support through Social collaboration.
360 Degree customer view into related application and products for customer, view past interactions and communications with customer. This enables better and meaningful engagement with the customer and long term loyalty as a side effect.
Omni Channel Experience that enables seamless account opening experience across Online and Branch. Applicant can start an application online and complete the application at the branch and vice versa. E.g. Applicant opening a Joint account may start the process at branch and complete his/her portion of the process at branch while co-applicant if not available there can resume and complete the application remotely.
Instant Debit Card Issuance – Ability to issue instant debit card at the branch is one of the critical components in the fierce competition for customers.
Eliminate wait time for the customer to receive the card for usage.
Cost for debit card issuance and mailing of the cards can be high, instant debit card issuance can eliminate such costs
Instant card issuance with customer selected PIN’s and personalized card help customer get started immediately and can result in greater usage. Customer selected PIN’s eliminate the risk of customer losing or forgetting the assigned PINS ensuring security and resulting in a greater usage of the cards.
SLA & KPI Monitoring and Reporting– Ability to monitor and measure the account opening process and staff performance provides opportunities to find bottlenecks and optimize the process.
Solution for Account opening provides ability to measure various metrics associated with account opening to executives at various levels and in different perspectives.
Branch manager can review the branch’s performance for account opening.
Regional manager can review the performance (total time taken, abandoned applications by stage, offer conversion etc…) across multiple branches to identify needs for skill improvement via training and process improvement.
Pre-Approved Offers – During the account opening process the system provides ability to push pre-approved offers to the customer. This provides ability to cross and up sell products to customer and combine the sign up for the products avoiding duplication.
Offer Management – Provides ability to manage the cross selling decision rules that are manageable by the business, measure the effectiveness and make amends required.
Real time product recommendations based on customer profile
Prevent re-offer of rejected offers or products that the customer has already signed up for
Ability to measure cross selling effectiveness at the branch level and across
Offer management at Smart Digital Branches – The Digital Branches can intelligently identify customers that walk in to branch and push offers directly to their Customer’s Smart phone through the Bank App installed on their smart phone.
Offers can be very specific targeted based on customer profile e.g. Privileged, account type etc. Customer can accept, defer or reject an offer directly from their mobile. Interest in an offer can result in the alert to the branch staff to help assist the customer to complete the offer action.
New product account opening action resulting from these offers can integrate in to the account opening solution.
Social Collaboration – Integration with Enterprise collaboration tools for knowledge management and internal collaboration between employees to resolve and clarify.
Remote Assistance – Remote assistance to the customer while not in the branch.
Analytics for Cross Selling– use of Analytics to Improve the cross selling and up selling capabilities and targeted promotions.
Biometrics- Enhance the security by using biometrics for three factor authentications using something you
HAVE (Card/User id)
ARE (biometric- finger print, facial recognition etc.,)
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