Pub. 8 2018-2019 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2019 13 • Significantly boosts adoption rates • Reduces the workload on more expen- sive channels Best Practices for Mobile-First Account Acquisition and Onboarding Sometimes, even the most seemingly innovative acquisition tools can fall short of customer expectations. To avoid that, here’s a list of online account-opening best practices, from start to finish: 1. Customer Knowledge and Support— Deliver clear and con- cise knowledge of the products and services you’re offering, and provide guidance about the application pro- cess. Customers also should have the ability to ask questions directly from the application tool. 2. Data Capture— Require customers to enter their personal information only one time. Your core-integrated account-opening solution should then capture that data for automated input on future applications. 3. Identity Verification— Automat- ically deploy a watchlist check and identity verification using the cus- tomer-provided information. And ensure out-of-wallet questions are updated, secure and effective. 4. Approval/Follow Up— Provide timely approval of account applica- tion, generally within one to two business days. And always follow up in cases of rejection or custom- er abandonment. 5. Disclosures and Regulatory Compli- ance—Ensure regulatory compliance by providing clear disclosures. 6. Account Funding—Provide multiple options to fund the account, includ- ing ACH transfers. 7. Account Fulfillment—Offer instant account access and, ideally, electron- ic follow-up rather than paper-based communications. And Then There Are the Solution’s Features While the above practices positively are a must, they’re just part of the pic- ture. To deliver the complete custom- er-centric experience, acquisition tools should include a few critical components: 1. Channels of Choice: Banking customers have flocked to online and mobile banking platforms, and these digital platforms will only rise in popularity. A successful online account-opening solution must exist in all these channels, giving consum- ers the option to open an account on their channel of choice. 2. A Progress Bar: Customers appre- ciate clarity, and although it seems simple, a visual icon that shows the customer’s progress through the on- line application deters abandonment. 3. Smartphone Responsiveness: It’s likely that many customers who elect to use an online ac- count-opening application will use a smartphone. Optimizing solutions for smartphone use ensures these customers have the same experience as a desktop or tablet. 4. Built-In Compliance and Security: Account-opening regula- tions are complex, but the basics fall into two categories: knowing who your customers are, and protect- ing their sensitive data. Here are some features that a modern online account-opening solution should possess to maintain an appropriate level of compliance: a. Scanning/validating driver’s license photo b. Limiting fraud by email verification c. Using customer security questions to authenticate the user So, will competition from the digital retail giants force financial institutions to shift their business models? Perhaps … but maybe that’s not such a negative thing. Allowing customers to choose how, when and where they bank surely will only strengthen and nurture those lasting relationships. To hear one banker’s firsthand perspective on deploying an online account-opening solution, listen to The Fine Art of Customer Acquisition, an episode of CSI’s podcast, Fintech Focus.  Laura Ryan is product manager for NuFund®, CSI’s online account-opening solution, and holds more than 35 years’ experience in the financial technology industry. During her career with CSI, Laura has been actively involved in the development, management and support of a variety of new account onboarding systems—both in-branch and online.