The unexpected decline in digital checking account openings compared to total checking accounts opened year-over-year is a concerning trend that warrants closer examination. What could be causing this decline? Suspicions point towards either stagnant advancements in digital account opening applications or shifting demographic patterns.
If banking digital platforms fail to offer a streamlined and user-friendly experience for opening checking accounts, potential customers may be deterred from completing the process online, opting instead for traditional in-person methods or abandon the procedure completely.
The slow pace of technological innovation in traditional banking organizations could serve as a barrier for individuals looking to open accounts with these institutions, especially among younger demographics who prefer the ease of digital channels and are accustomed to seamless navigation.
Financial institutions must first focus on enhancing the current services offered through their digital banking platforms to elevate user satisfaction before delving into more advanced solutions.
Indeed, It is essential to prioritize effortless navigation through online and mobile banking interfaces as well as seamless digital money transfers between accounts and smooth international transactions before introducing any additional features.
Continuous testing and monitoring of the bank or credit union's digital banking channels are also paramount to guarantee a smooth and effortless user experience. Once the foundation is solid, advanced tools and features can be added to enhance the overall banking experience.
Here are five essential strategies that financial institutions should prioritize in order to enhance user's satisfaction and attract more deposits.
The performance of deposit account openings in 2024 has left much to be desired. Despite the implementation of new digital account opening systems by numerous institutions in recent years, and with many more planning to do so in 2024, the proportion of checking accounts opened digitally saw a decline of 3%, settling at 16% of the total in 2024 according to the Cornerstone Advisors’ 2024 Digital Banking Performance Metrics report.
While 29% of banks had intentions to choose a new or upgraded consumer digital account opening system in 2023, only 19% followed through. Similarly, credit unions had 32% looking to make a digital account opening selection in 2023, but only 12% were able to do so.
Some financial institutions such as Coast Capital or Home Trust have decided to partner with ebankIT to improve their onboarding experience and increase financial growth. EbankIT's solution offers a fast and seamless digital onboarding journey that combines automated KYC processes and ID verification with humanized technology such as chatbots with straightforward access to human support if needed, among other innovative features.
Improving the digital onboarding process is essential for financial institutions to retain potential customers, boost account openings, and ultimately drive deposits. Revamping the onboarding process presents a chance to stand out from competitors, streamline operations, and pave the way for long-term financial growth.
In a study conducted in June 2023 by Cornerstone, it was discovered that nearly 80% of American consumers deemed mobile deposit capabilities as either essential or significant.
Therefore, ensuring mobile-optimized banking services is crucial not only to delight banking users but also to deter them from closing accounts and switching to neo-banks. Neglecting this aspect could lead to a drop in Google rankings and may result in lower conversion rates, especially among the younger generation.
Financial institutions must ensure that their banking website operates seamlessly and offers an aesthetically pleasing appearance on all mobile devices. The site should automatically adapt its layout to suit any screen size, ensuring a polished and user-friendly experience. If any elements appear cut off or distorted, enhancements should be made to optimize the overall user experience.
Cornerstone has highlighted 12 essential features for mobile banking users that financial institutions should prioritize when developing a mobile solution. Deposits take the spotlight as the second most crucial feature for users, emphasizing the significance of a responsive mobile banking solution.
Understanding the target audience is a key factor for financial institutions to enhance customer satisfaction and draw more deposits. Identifying the profiles of account holders and understanding their reasons for choosing a financial institution can be pivotal in crafting strategies to attract a wider audience.
To achieve this, financial institutions should harness the power of data analytics to effortlessly streamline this process. Equipping front-line staff with customer analytics dashboards to assist them in gaining a clearer understanding of their banking users' needs and delivering the information and services they seek.
Utilizing resources like the a Campaign Creator enables banking personnel to target the ideal audience for their campaigns, offering tailored messages to cater to their individual requirements, and boost the chances of conversion.
Undoubtedly, incorporating a personal touch empowers banks and credit unions to fuel deposit growth through a well-thought-out marketing strategy. However, it is essential for financial institutions to not only prioritize boosting deposits but also to ensure that their account holders feel genuinely appreciated and valued in every interaction.
Chancze Lepore, Senior Vice President of Digital Account Opening and Onboarding at U.S. Bank, emphasized at the Money Experience Summit, that successfully guiding clients through their first days and weeks allows banks to lay a solid foundation for building deeper relationships, whether through tailored customer insights or data-driven strategies.
The digital era has transformed the banking landscape offering unparalleled ease and convenience for customers of all backgrounds. With a strong preference for app-based financial management, especially among millennials, account holders seek seamless solutions to manage their finances effectively.
According to a Gallup study on banking services, a positive online experience is crucial for engaging customers and ultimately increasing deposits. Customers who are highly satisfied with all banking channels tend to deposit seven percent more of their total share in the bank and are over nine times more likely to consider their primary bank for future financial needs.
Nevertheless it is evident that both human and digital channels must be operating effectively for customers to truly engage. Financial institutions must prioritize an optimized omnichannel strategy that aims to provide consistently enhanced experiences across all channels whether digital and physical.
ebankIT's banking solution enables account holders to perform all tasks in one seamless end-to-end omnichannel journey that can be accessed via mobile or any other of their devices while also providing information about the nearest ATMs and physical branches so that users can select the channel that best suits their needs and preferences, enhancing their overall banking experience.
With the advent of Open Banking, financial institutions can cut down on time-to-market and maintain a competitive edge.
Financial institutions have the opportunity to harness ready-made API connections, enabling them to expedite the creation and rollout of fresh deposit offerings and functionalities by tapping into a vast ecosystem of partners offering complementary solutions that connect with a wide range of fintech services, investment platforms, or financial aggregators.
By harnessing the wealth of data stored within the banking application through an API gateway, financial institutions can elevate the customer experience to new heights and grant access to diverse deposit options, such as high-yield savings accounts or automated savings tools, directly within their existing digital banking channels.
Banks and credit unions can then provide their customers and members with a diverse array of cutting-edge innovations, bridging them to non-financial services, supporting their growth, both professionally and personally, and enhancing their user experience.
ebankIT recognizes the critical role of boosting and retaining deposits for financial institutions. That is why it offers a cutting-edge digital banking solution that empowers financial institutions to streamline their operations, drive economic growth, and enhance customer experience.
The solution includes optimized account onboarding, a mobile-responsive banking platform, data analytics for targeted marketing campaigns, seamless convenience through an omnichannel approach, and access to continuous innovation via Open Banking and an APIs gateway.
ebankIT's comprehensive banking suite future-proofs financial institutions and helps uncover new revenue streams as well as ensure customers are equipped with the necessary tools to achieve their financial objectives, thus fostering long-term loyalty.
Explore our brochure to uncover the myriad of ways we can assist you in enhancing your financial services.