In our past articles, we have explored the benefits of a unified new account opening process for online, branch and call center. We have reviewed build or buy options, in-house development and outsourcing alternatives, and the benefits and risks associated with each method.

It is time to take a closer look at your new account opening process optimization options. Is your institution ready to take on this project? Are you seeking a seamless process that delivers all the potential benefits from day one? Are you looking for start to finish capabilities including usability, overall cycle time, security and compliance, and multi-channel delivery optimization with a unified account opening process – online, in any branch, and in the call center?
 

From our experience, we can tell that while most benefits are gained with the most comprehensive solution, there are many situations which may be better served with a phased approach.

Evaluate Needs

Let’s begin with an evaluation of your business drivers and organizational priorities. If your online service is managed separately from your branch operations, there may be different priorities for different projects. Has your charter or membership base expanded beyond your branch network? Are your customers requesting you to provide more services online? Has competition in your market begun offering advanced services online? Do you wish to take the lead and do better than others with your online services? You should assess your business needs and set reasonable goals. It may not be practical to improve the entire account opening process across all delivery channels at the same time. A phased strategy with small victories along the way may be more suitable for your organization.
 

Phased Approach: Leading with Online Channel

Financial institutions already have varying degrees of automation in their branches to handle new account openings. There are more people, training, and processes established on that side of the house. Most of the time, an existing online service for account opening has a static form or at best a dynamic form with instructions to ‘mail in your application’, and your account will be setup in 10 days. So, why not make an easy choice and begin with your new improvements in the service online?

You will make your services more attractive with a new approach and more choices. Many customers prefer the self-service channel over visiting a branch. Online account opening offers 7x24 service hours. Customers can apply for accounts anytime, anywhere without being restricted by branch hours or locations. You basically have a ’virtual branch’ everywhere, ready to serve all the time. This approach is less disruptive to your branch operations. With success here, it will be easy to evaluate benefits for the branch service later.

With the new online account opening service, you now will have the following back end processes integrated for better user experience and higher efficiency:

• Eligibility verification – is the applicant able to be your customer or member?
• ID verification – is the applicant’s personal information valid?
• ID authentication – is the applicant who he says he is?
• Patriot Act compliance and OFAC check – meet your compliance requirements
• Risk management – what is the risk profile of the applicant?

• Cross sell – Up sell – what are the best products for this applicant?
• Deposit and loan products – real-time decisioning on all the products you offer
• Account setup in core system – real-time setup in your host system
• Online funding – real-time funding of accounts
• Switch kit – online switch kit to improve your rating as the primary financial institution - initiate the switching of other financial relationships including direct deposits and automatic payments as well as closure of other financial institution accounts With the online account opening process, decisions and approvals are made in real-time, and accounts are created instantaneously; therefore, it speeds the time it takes to complete an application. With a faster process, applicants are less likely to abandon the application process. Also, by integrating an automated process with your business rules, customer data is analyzed in real-time, and the customer information can be used for cross sell and up sell opportunities by making the right offer to the right customer.

Benefits of an Online Account Opening Process

Financial institutions can realize benefits of a streamlined online account opening process even if it has not been deployed throughout all delivery channels. With a more efficient online account opening process, financial institutions can:
• Attract and retain customers
• Minimize operating costs
• Improve regulatory compliance and fraud protection
• Optimize cross sell and up sell opportunities
• Grow revenue from more deposit and loan accounts
• Maximize customer satisfaction
Moreover, customers enjoy a fast, easy, and convenient service.

To learn more about the uMonitor New Account Setup and Online Funding with Switch Kit solution and other innovative financial technologies such as Account-to- Account Funds Transfer Service to move your money, call 901.757.1212 to speak with a uMonitor representative today or visit www.umonitor.com.

Next week, we will explore “Open Accounts: Phase II - Branch & Call Center”.

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