Banks are failing to convert customers during account opening
Manual processes, branch visits, long wait times, and amount of requirements are among the reasons why prospects ultimately drop out.
of prospects abandon the account opening process
Watch out for these clues
Here are some signs that can indicate a room for improvement in your account opening and onboarding processes.
- Low conversion rate - tech titans such as Amazon and Netflix report conversion rates of 74% and 93% respectively — compared to a staggeringly low 15% for banks.
- Redundant efforts - a survey of wealth management providers in Switzerland revealed a revisit ratio of around 49%, suggesting redundancies in client onboarding processes.
- Time-consuming applications - too many steps and barriers cause more drop offs. According to one case study, opening an account online with some of the traditional banks requires nearly 100 clicks.
What does this mean for your bank?
With digital channels playing such an important role, not having the right customer onboarding process in place hampers your bank’s ability to thrive in an increasingly fast and competitive market.
With a less-than-fabulous account opening process, you miss the chance to convert signups into active users who generate recurring revenue.
Higher acquisition costs
When the account opening process isn’t smooth on a digital platform, customers will be forced to visit your branch.
Poor customer growth
Failing to demonstrate product value early in the account opening process leads to frustration and dropouts causing slower customer acquisition.
Turn prospects into customers
Here are some best practices to improve your organization’s customer onboarding.
Manual processes are costly, outdated, and time consuming. When you digitize and automate manual tasks and decision making for customers and employees, you'll reduce back-office costs, decrease human error, eliminate friction, and above all, delight everyone involved. How? Give your retail, business, and private banking customers an intuitive and fast account opening experience with
From cutting-edge identification solutions to data-driven messaging tools, integrating service providers in your onboarding journeys allows more tasks to be completed in a shorter time frame. Solutions designed to work easily with underlying core banking systems and third-party offerings, often called “orchestrators” are critical in connecting and elevating your onboarding process. Your move: Transform your onboarding and do it with speed with the Backbase Engagement Banking Platform, which comes with over 40 pre-integrated fintech solutions.
For bank employees, a seamless digital onboarding promotes a higher volume of signups, as you don’t have to rely on a fixed pool of branch or call center staff to process applications. You’ll raise productivity by automating the tasks that employees currently have to perform manually due to legacy systems. You’ll also free up their time for activities that increase customer lifetime value, such as relationship management. Your move: Give your teams the flexibility and tools they need for quick resolution, servicing, and upsells with
3 reasons why you should invest in better customer onboarding
- Higher revenue. A fast and frictionless digital account opening increases your conversion rates and opens new markets, ultimately leading to more customers and revenue.
- Lower acquisition & operating costs. Turn customer knowledge and document gathering into a digital, seamless, and secure process that minimizes operating and acquisition costs.
- Better employee productivity. Minimized manual and repetitive work for employees means a better focus on providing world-class experiences to customers.