The way consumers choose to research future purchase decisions has become increasingly digital. Across industries, consumer journeys are more complex, with prospects jumping between offline and online channels. Trends from the retail industry show how consumer behavior has shifted. For example, 83% of U.S. shoppers who visited a store in the last week say they used online search before going into a store. Expectations from the retail world seep across buying journeys, including the lending industry.
While the importance of superior customer experiences should not be overlooked, focusing solely on experiential elements risks missing out on consumers’ growing desire for immediacy. In the last two years, mobile queries that contain “bank near me” have grown by over 60%. Consumers expect lightning-fast deliveries and real-time assistance — no matter the time of day.
In order to meet these newly entrenched expectations, financial institutions can look to offer a comprehensive, cohesive digital account opening solution. There is still a slim window of opportunity for a bank’s seamless digital account opening experience to be seen as a differentiator, but piecemeal onboarding processes will soon be a thing of the past.
Challenges of traditional account opening solutions
As consumers move more of their banking activities to digital channels, their expectations of excellent experiences seep across a broader range of engagement points with lenders. There are a few common challenges specific to the account opening process that lenders are currently facing:
More consumers prefer to apply via digital channels instead of traditional processes
This demand is creating pressure for lenders to utilize new account opening technology.
Existing digital experiences are not optimized well
Even though most financial institutions have had an online application for years, many have not fully optimized their mobile application experience. A poor mobile experience greatly impacts digital application compilation rates.
Consumers expect an omnichannel banking experience
Since people now have seamless experiences with retail shopping, they expect the same ability to switch between different channels without disruption.
Not only do consumers appreciate the flexibility offered by digital account opening solutions, studies show their preference for applying through a digital channel is increasing. According to an FIS study in 2019, 37% of all consumers and 52% of millennials indicate they would rather open a new account via a digital channel or mobile app.
Factors driving account opening success
A successful account opening experience is driven largely by three components: risk, operational support, and the technology used to support them.
In order to mitigate risk, financial institutions must balance security requirements with ease of use for the borrower. At minimum, the account opening solution needs to confirm a consumer’s identity, verify the application is not fraudulent, and capture the correct amount of information to deliver a credit decision. Utilizing a digital solution allows lenders to streamline this process.
The right technology also gives financial institutions the ability to quickly alter workflows in response to arising challenges. Ideally, it will provide insight into information that institutions can then use to inform risk decisions. Overall, the process should support the borrower as they move through the application experience by providing transparency and offering assistance as needed.
What makes a digital account opening solution comprehensive?
Blend’s digital lending platform helps financial institutions tackle the challenges outlined above and enjoy additional benefits. What does that banking experience look like for lenders and borrowers?
Consistency across products
Blend connects a wide array of consumer banking products into a consistent, highly-converting application experience. Offer customers a simplified interface built on person-centered design across your entire portfolio.
Optimized for any device
Our white-label application experience is carefully designed to be accessible on any device. In fact, up to 60% of Blend deposit account applications come through mobile devices.
Personalized customer experience
Cut out unnecessary manual entry for borrowers with an easy single sign-on (SSO) authentication, so that applications are pre-populated with helpful information on any digital device.
Let bankers focus on supporting the difficult questions with digital account opening solutions from Blend. Answers to common questions are built directly into the process. Blend measures how consumers interact with the application, noting where people get stuck, in order to continuously improve the experience.
Marketing campaign integration for deposit accounts
Blend allows lenders to better assess the effectiveness of marketing campaigns by easily capturing consumer-entered promo codes or automatically pre-filling them through external custom marketing URLs.
Ready to eliminate the hurdles and challenges of your digital account opening process?