Opening Bank Account Digitally Not Working for Most Consumers
Currently, a majority of successful bank product applicants are using online and mobile channels during the application process. However, according to Javelin Strategy & Research, few applicants are able to complete the process online or via a mobile device.
This is not good news for banks. Research indicates it is more likely that applicants will abandon their application if they need to switch channels.
Javelin’s Digital Account Opening Fails to Deliver a Single-Channel Experience found that over two out of three applicants are using online and mobile channels to apply for credit cards, and 60% are using these channels to open checking accounts.
It is difficult for applicants, particularly those using mobile devices, to complete their application on a single channel. Only 34% of online applicants were able to begin and complete an application. The other 66% had to move to another channel at some point during the application. Only 8% of mobile applicants successfully finished the process on a single channel.
“No banker would find it acceptable to tell a prospective customer who walked into a branch, ‘I’m sorry, but you must drive to a branch across town to open the account you want.’ Yet that is effectively the message consumers get when they seek to open accounts in digital channels but learn that they’re unavailable or that the process is too complicated to be completed in a satisfying manner,” said Mark Schwanhausser, Director of Omnichannel Financial Services at Javelin Strategy & Research.
Javelin encourages financial institutions to work on a better multichannel application experience.