3 signs your digital deposit account strategy is working | Blend

3 signs your digital deposit account strategy is working

Gauge the effectiveness of your digital deposit account strategy in driving sustainable growth and profitability.

Not only does a simple and streamlined deposit accounts solution yield multiple business benefits, but it’s also the key to establishing lifelong relationships with your customers.

Yet even today, opening up a deposit account is filled with friction. Consumers are facing interrupted digital experiences that don’t allow them to accomplish their goal in a single session.

It still takes an average of 3 or more days to complete a deposit account. Abandonment for digital deposit accounts is often over 50%1, and manual processes waste an average of $400 – $7002 in acquisition costs. And only 1 in 3 consumers3 have a credit card issued by their primary financial institution––which means FIs are not effectively able to cross-sell the value of having a card with their primary bank.

To make sure you’re not leaving revenue on the table, here are 3 signs you are maximizing the benefits of digital deposit accounts.

1. You’re streamlining the onboarding experience

A key indicator that your digital deposit account strategy is working is a streamlined onboarding process. If customers can seamlessly open an account without facing interruptions or having to navigate through multiple screens or go through a different application process in person than online, it’s a sign that your strategy is effective.

A smooth onboarding experience not only enhances customer satisfaction but also reduces abandonment rates significantly. Investing in technologies with speedy onboarding, ease of use, relevance, and instant access can all make a difference in deposit account experiences.

2. You’re reducing acquisition costs and accelerating customer lifetime value

A successful digital deposit account strategy should translate into tangible financial benefits for your institution. By digitizing and automating various processes involved in account opening, you can significantly cut down on operational expenses, and accelerate account activation and utilization

Some common KPIs include cost per acquisition, onboarding speed; often measured by days to first deposit or first 5 card transactions), and customer retention rates, all of which can help gauge the overall effectiveness of your digital deposit account strategy in driving sustainable growth and profitability.

And, by nurturing long-term relationships with customers through personalized offerings and exceptional digital experiences, you can enhance customer loyalty and maximize their lifetime value.

3. You’re seeing high adoption of other products

Another indicator is your ability to cross sell other products. While holding a customer’s deposits and primary transactional account is the most important goal, what you do with the information from these accounts is just as crucial.

A 2021 Raddon study found that customers who have a deposit account with an institution they trust are more likely to return to them with other financial needs. In fact, according to Raddon, with a primary checking account customer, credit unions are 37% more likely to gain future deposits, 17% more likely to gain future loans, and 10% more likely to gain referrals.

Once you become a customer’s primary checking account with direct deposits, the rich data that comes from this will unlock your ability to cross-sell highly personalized lending products, more propensity to future loans and deposits, and effectively compete against challenger banks and fintechs through a fully digital, end-to-end solution.

Partner with the right tech platform

  • Low interruption, high converting application experience
  • Post application submit account onboarding and activation
  • Surfacing cross sell offers and leveraging data proactively

Request a deposit account demo today. Learn how Blend’s digital deposit account solution helps financial institutions win primacy status, faster.

1Days to Complete a Deposit Account is based on data published by NerdWallet.

2Deposit Account Application Abandonment Rate is based on data from Cornerstone Advisors pertaining to financial institutions in the U.S. and their abandonment rate for digital applications for deposit products.

3Banks’ Spending on Loan Origination is based on research from IDC’s Worldwide Banking IT Spending Guide, V2 2023.