See how an investment in the right account opening software can pay off in bank deposit growth
The sudden and unexpected failure of Silicon Valley Bank has left many people questioning the stability and security of the financial institutions they do business with.
The failure was caused by serious mismanagement at the bank. It was precipitated by bad leadership decisions related to interest rate increases implemented by the Federal Reserve (the Fed) to combat inflation. The Fed’s moves negatively impacted the value of bonds held by the bank, which caused it to go under. It’s the worst crisis to hit the financial services industry since the bank, insurance, and brokerage company failures that lead to the Great Recession more than a decade ago.
Public trust in banks has been eroded even though FDIC insurance restored the deposits made by people and local businesses at Silicon Valley Bank. Because of this, many private depositors and owners of small businesses across the country are making withdrawals and moving their money to new deposit accounts at banks and credit unions they feel are better managed and more secure than the ones they’re currently doing business with.
So what can financial companies do to build trust with prospective customers and new depositors?
Focus on improving the account opening process, using cutting-edge software that makes it fast, easy, and, most importantly right now, secure. Doing this is particularly important for online banks, because people have come to expect smooth and seamless experiences, and smaller regional and community banks, where prospective customers might become suspicious if they encounter a questionable account opening experience. Making account opening easy is something already being done by larger banks like Citi. If your experience is doubtful, prospective customers will likely abandon, not make a bank deposit, and move on to a more modern institution. This will improve conversions at those banks while lowering yours.
This article explains the benefits you could enjoy if you improve your account opening process during this challenging time for financial institutions. It also reveals what you should look for when selecting account application software.
- Benefits of modernizing your account-opening process
- Key factors to consider when choosing account-opening software
- Improving the bank account opening process: The final word
Benefits of modernizing your account-opening process
Here are some reasons you should invest in a new account application solution.
The right software delivers a great first impression
People may have encountered your marketing, checked you out on Google or another search engine, visited your website, and looked at online ratings and reviews before deciding to open a savings account or checking account with your firm. However, a slow, cumbersome, or less-than-secure account sign-up process could entirely undo the positive impression they have of your bank. Don’t waste the money you spend on effective marketing strategies if you’re only going to disappoint people when they decide to apply for an account.
A streamlined account opening process delivers a great initial customer experience, making it easier and more convenient for prospects to get approved and deposit their money. This will result in satisfied customers who are more likely to deposit additional funds in the future and do other business with your bank. Plus, the positive impressions could turn into great online reviews, attracting additional prospective customers. You could also make your easy account-opening process a key feature in your marketing.
The right system helps establish solid customer relationships
The account opening process is the first step in building good relationships with customers. This is particularly important right now when many depositors are distrustful of financial companies.
Beyond starting a banking relationship right with a smooth account-opening process, modern software and systems allow banks to collect information about their depositors which helps deliver a better customer experience over time. The data collected while applying for an account will enable you to tailor offers that meet individual needs. Personalization prevents bank clients from becoming irritated because they’re being bombarded by irrelevant marketing pitches. It can also increase customer loyalty, which will result in higher deposits and more business with each depositor.
The data collected while opening an account makes meaningful product offers possible. For instance, you could recommend mortgages to people who seem on track to purchasing a home, transforming them into more profitable borrowers paying you interest on loans rather that just depositors earning interest. Or you can offer certificates of deposit to clients with significant account balances which will help ensure you hold more of their money for longer.
Leveraging data also prevents you from doing things like promoting college savings plans to people who don’t have kids or brokerage services to those with too little savings to invest. Offering the right products to customers will increase the business you do with them. Not irritating people with constant meaningless offers will help prevent them from jumping ship.
A sound account-opening experience helps build trust
A secure and transparent account-opening process, backed by a bullet-proof system, can build customer trust. Trust is essential in the banking industry, especially today when a few bad actors have eroded it. Prospective customers, whether individual or company owners interested in opening business accounts, will only work with banks they trust.
State-of-the-art technology gives you a competitive edge
Financial companies today are always looking for ways to beat the competition. It's hard to come up with novel incentives and rewards programs that prospective customers find attractive enough to get them to open new accounts. It’s a cut-throat industry, even on the regional and local levels. To win, you must do everything possible to supply cutting-edge products and services. An easy and fast account-opening process could be an appealing marketing message to busy people. Delivering on it helps you turn them into customers.
Key factors to consider when choosing account-opening software
Not only do you need the right savings account opening solution for your business, you need the right one for right now. It's an investment that could earn you significant deposit growth in the future. Recent banking issues have prospective customers paying more attention to the details than ever. Here’s what you must look out for when selecting a solution:
- Customization. You want software that works for how you do business. You don’t want a solution that forces you to adjust your business practices to fit within its limitations. You should also ensure your account opening experience will reflect your brand and tie seamlessly into your other digital assets.
- Easy to use. Check that it’s simple and intuitive to move through the application process. Ensure it’s possible to save progress and complete an application later. See if users can access help if they need it.
- Dependable support. Find out the level of support the vendor offers to ensure the platform will work correctly, even during off hours.
- Integrations. Most financial institutions have countless back-of-the-house systems in use today. Ensure the application software integrates with all of yours.
- Cost-effective. Make certain the software you choose delivers value for the price. The cheapest solution usually isn’t the best one.
- Security. In today’s low-trust banking environment, you need a software solution with the highest safety protocols. Other than a failure, nothing is more devastating to a bank than a data theft or other cybersecurity issue.
Improving the bank account opening process: The final word
People’s trust in banks has fallen because of the Silicon Valley Bank failure and other issues the industry is currently facing. One of the key ways to build trust with savers who are moving their money to new financial institutions is by implementing a trusted account opening system like Biz2X. It makes the process simple, easy, and secure. It will make your bank more competitive and improve its profitability in today’s challenging market. This could be the smartest deposit growth strategy you could implement right now.