In today’s rapidly evolving world, Banks know that if they want to tap the younger generation market, they need to make their services digitally accessible. The current pandemic has only added an urgency to the need of online availability of Banking services as well. Hence, Digital Account Opening (DAO) Service becomes imperative for the Banking industry.
Banks are investing heavily on customer acquisition through DAO. As per latest research, it amounts $1,500 to $2,000 for Banks compared to $300 for financial startups to bring a new banking client. However, the core question remains the same – instead of such huge investments, why is it difficult to get new customers? The answer is not in ineffective marketing strategy or offers. It’s the inefficient customer onboarding process. Almost 19 percent of users abandon the digital account opening process in between.
Banks often get an increase in application volume after deploying digital account opening systems, only to be disappointed when the volume does not materialize. There are few reasons for this behavior pattern,
1.) Replicating exact physical process: Many FIs try to design customer workflow replicating existing offline process. Fields which are not a part of regulatory requirement should be ignored to ensure a simple Data entry process.
2.) Poor user experience: From account opening to account funding user experience must be seamless. User experience should be optimized for Multichannel onboarding.
3.) Inadequate Integrations: Workflows that are not integrated considering all exceptions result in manual intervention which defeats the DAO process.
4.) Validate broken workflows: Many organizations focus mainly on happy paths and they miss various exceptions, triggered in production. This results in customizations and high abandonment rate.
5.) Measure what matters: DAO implementation is not a one-time activity, it requires continuous monitoring and tweaking to maximize efficiency. We recommend following metrics while designing and tracking them post implementation:
a.) Average time taken for each checkpoint
b.) Heat map highlighting top ten workflows
c.) Tracking online vs offline acquisition rate
d.) Abandonment rate at each checkpoint
Thinking about Digital Account Opening application here are few Go-Live Faster tips to help & improve overall DAO strategy
1.) Initial Minimal Information Gathering
2.) Design with mobile in mind
3.) Ensure “save and resume” functionality
4.) Retarget abandoned applications
5.) Postpone cross- and up-selling
6.) Ensure tool stability