Why account opening has become the most important part of the customer journey
Now more than ever, customers expect a seamless and hassle-free experience when opening a new bank account. Account opening is often the very first interaction a customer has with a bank, and it sets the tone for their entire banking relationship.
Frustrations, complexities, or delays during this crucial stage can result in customers abandoning the process or, even worse, forming negative perceptions of the bank. The customer experience during this crucial step is key in ensuring that you actually get the customer and that they are excited to start their banking journey.
The Impact of Abandonment
Application abandonment is one of the top challenges banks face during account opening. Customers have countless choices when it comes to banking services, and if the account opening process is too cumbersome, they’ll switch to banking with a competitor that offers a better experience.
Recent findings suggest that the account opening experience leaves a lot to be desired, with 68% of customers abandoning an application in 2022. In addition to losing customers, these customers may also share their frustrating experiences through word-of-mouth or online reviews.
The Digital Transformation Imperative
In account opening, customers expect the same level of convenience they experience in other digital interactions, like when they buy something off Amazon or schedule a Lyft. Banks will need to respond by simplifying and optimizing the process.
The Role of Technology
Customers’ expectations for a simple process will force banks to lean into technology, with the goal of helping customers complete their applications faster – including biometric authentication, artificial intelligence, and instant verification.
Account opening is a crucial piece of the banking industry’s ongoing digital transformation. It’s the gateway to establishing trust, building loyalty, and securing customer relationships. Banks that modernize and simplify their account opening process will position themselves as leaders in delivering exceptional customer experiences.
