We all know every day millions of customers open new accounts from different places and different banks. Where signatures are a common way of checking identities, but signing papers can be a time-consuming procedure that requires going to a branch or copying, scanning, and publishing records, both of which increase the risk of human error. But now to save your time we have something more than signing documents and its digital account opening. As the name itself says digital that means you don’t need to go anywhere just sitting at home some few clicks and your bank account is opened.
Interesting right!! Let’s get a brief detail about this that is what does digital account opening means and other things that is associated with DAO.
What is Digital Account Opening?
The first thing that comes to everyone’s mind is what digital account opening means? So here is your answer digital account opening is the process of opening an account without going again and again to the bank for opening your account. As we already discussed that DAO is a simple process where just by few clicks your account will open and ready for use.
Now you must be wondering that how it is possible and how DAO can easily open your account so the thing is DAO –
- Collect user’s identity digitally.
- Evaluate risk/fraud to accept (or reject) candidate’s account opening form.
- Identify the name of account holder name.
- Collect funds using credit/debit cards or by mobile deposit.
That is how the digital account opening process works and these are the actions it performs. Today most of the banks are using online account processing to provide their customers seamless service so that they will not get stuck at any point and easily open their bank accounts.
New accounts are a priority
It is a very obvious fact that the bank wants more and more clients that leads to more account openings. As the number of accounts opening in a bank increases the name and fame of that bank also increases the growth of the bank hence as a result new accounts are a priority for every bank. But wait how can a client open an account at your bank? We all know there are multiple numbers of banks present and as a result, the competition is also high isn’t it? So what the bank needs to do next?
Well, clients usually don’t switch from one bank to another so it is the responsibility of the bank that they need to take care of every client by never disappointing them with the services they provided. Banks already know that the world is moving in a new phase of online and digital methods. They know that the younger generation can’t live without their smartphones and as a result, the things that are taking place digitally are much used and in demand.
As a result, digital account opening seems to be a natural and appropriate choice for banks to have. But, their positive ideas aren’t always met with results. Wait what’s going on???
What mistakes that banks do while Digital Account Opening?
We all agree at some point that banks are also doing a kind of business, where one of the important aims of the bank is to have lots of customers that register themselves into their bank by opening bank accounts. They must follow a variety of regulatory guidelines, including Know Your Customer (KYC) regulations. As a result, somewhere bank is under a kind of danger for having a lot of personal details of their customers. Because of these two reasons, the bank needs to follow a variety of unique guidelines when welcoming a new client into their field.
When it comes to going digital, banks usually start with the regular requirements needed to open a bank account. These processes not only protects the bank details but also put an image in their customers’ mind that they are giving them safe and secure services. The only purpose for doing this is to make the onboarding process easy and safe. As a result, the bank does not seem to have done anything to modernize from the outside.
Further Read: The state of Digital Account Opening
Banks also bring their current onboarding processes online. They already created an online procedure for their banks to not bother anyone to create an online process for them. But sometimes what happens is that the bank started asking a lot of data with their clients online and as a result customer who are forced to put down their phones, collect identification cards, locate a branch, and schedule an appointment often walk away.
Today clients have thousands of banking options available for them to create their account. Many people would not try to sign up if it is too difficult. The bank’s reputation is harmed by the bad user interface, and those lost customers will most probably not return.
Issues with creating a Digital Account
While opening a digital account certain issues are needed to face by banks and credit unions who are trying to satisfy their customers. Let’s take a look over the issues that appear during the creation of a digital account.
- The number of digital accounts opened on a desktop is decreasing.
- Attempts to open mobile accounts are on the rise.
- Traditional new account forms don’t look well on mobile.
- Requirements for data entry.
- Accounts that have not been funded.
As we all know people are using mobile phone more as compared to desktop as a result usage of phones increases and the number of digital accounts opened on a desktop is decreasing.
In the above point, we have already discussed that how the usage of a phone is rapidly increasing as compared to other device that’s why we can say that attempts to open mobile accounts are on the rise rather than the rise to open an account on other devices.
As the mobile phone screen size continue to grow, online forms used by banks for account opening become too lengthy for the users. That’s why traditional new account forms don’t look well on mobile. Hence, now people like short forms that consist of few steps.
Have you ever thought that why we want the customers to enter every basic detail when we know that mobile phone OCR capabilities can capture the majority of identity data, pre-filling the new account form? Today in terms of requirements for data entry Bank Mobile handles the majority of the application process by taking a picture of customer’s data.
Although some companies allow customers to finance new accounts with a debit/credit card or mobile deposit, and sometimes they may also be required to complete signature cards. Both procedures are time-consuming and can result in zero balance that leads to an unfunded account.
How to create an efficient Digital Account Opening process?
Creating an efficient digital account registration process is just 6 steps process you need to perform so here we go…
Basic customer data capture
That means collecting all the data and information from the customers required to open their bank account. The data consist of primary goals, monthly income, past relationship with your bank, etc.
ID verification
Verification of ID plays the most important role in the account registration process. This is because it is the only way by which you can detect whether the person who is opening their account is trustworthy or fraudulent. ID verification consists of verification of ID credentials, proof of address, etc.
Instant account creation
Once the whole process of document verification comes to an end then you are up with your account creation. That means just by sitting and filling a form by providing some relevant details your account is instantly created for mobile use.
Customer due diligence
When your customers get to know about your terms and services then it is pretty obvious they will share their experiences with others as well. That means the chances of growing your field are more as compared to others. Interesting isn’t it? So, all you have to do is to satisfy your customers by providing them the best services you can.
Final account approval
As soon as all the process comes to an end that means document verification, sharing of your data to the relevant bank accounts, saving your details properly, and performing all the rest processes. The only thing that is remaining is the onboarding process that is the final account approval. Once the whole process comes to an end and everything is verified you will get full access to your account.
Additional compliances
Additional compliances consist of KYC i.e. Know Your Customer. KYC or KYC check is the method of defining and checking the client’s identity when opening an account. In other words, banks must ensure that their customers are real who they claim to be. If a client fails to meet the minimum KYC criteria, banks can refuse to open an account or terminate their account application form.
Also Read: Future of customer onboarding in financial institutions
Conclusion
By the end of this article, we concluded that one thing is very clear i.e. opening a digital bank account is easier. Overcoming all the obstacles that people face in normal account opening now the process become much easier, thanks to the digital account opening method. As it enables a customer to respond quickly to a bank regarding the problems they face while opening accounts and to complete the onboarding process in minutes rather than hours or days. They can complete the entire process on their smartphone, in the palm of their hand.
About Quickboarding
Quickboarding on/off-boarding resolution is the best suit for onboarding automation. Its receptive use and self conjugation platform help Banks, HR Firms, property, and Insurance firms in automating completely different reasonably on/off-boarding use cases. Contact the North American nation if you would like to envision and skill a digital transformation in your business.
