Financial institutions (FIs) continue to place a greater emphasis on enabling new account-opening growth through online and mobile channels, and expand their product offering to foster financial inclusion and growth. In my recently published study New DDA Strategies: Balancing Risk and Regulators, over 40% of FIs in every category with the exception of the largest FIs already offer some type of second chance account. While only 17% of the largest FIs currently offer second chance accounts, another 17% are planning to do so and 50% are evaluating whether to do so.
Online Account Opening Growth in 2017
We can all agree that the “bank of the future” will look and act differently than traditional brick-and-mortar institutions, but just how distant is that future? While we’ve seen account openings begin to shift away from the branch, Aite Group reports that by next year, 28% of new accounts will be opened online and 8% will be opened on a mobile device (an anticipated increase of 5% and 2% from 2015, respectively).1 In an increasingly faceless environment, validating a consumer’s personally identifiable information, their devices and related risk is vital to ensure the optimal customer experience as well as safety and soundness in the financial system. Are you ready for this shift?
As account opening continues to expand to online and mobile channels, institutions continue to tailor product offering to meet the needs of the consumer, validating identity and risk has become increasingly complex. Learn more about how to improve the digital identity assessment process with this infographic.