Opening Bank Account Digitally Not Working for Most Consumers

Opening Bank Account Digitally Not Working for Most Consumers

February 27, 2017         Written By John H. Oldshue

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.



The information contained within this article was accurate as of February 27, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time