The financial services industry is more competitive than ever, especially for brick-and-mortar banks without effective digital strategies. In the United States, 77% of bank customers prefer to manage their banking online through a mobile app or computer, compared to only 8% who prefer to visit a bank branch.
A digital account opening system can provide a smoother and more seamless experience, which is essential for attracting new customers and expanding your bank’s portfolio.
Banks have spent more than $2.8 trillion worldwide on digital transformations over the past 14 years. However, many banks still have slow and complex account opening processes, which often involve lots of forms, manual verifications, and in-person branch visits.
As more people go online to open bank accounts, it can mean lost business and revenue for your bank if it doesn’t modernize its systems. By onboarding new technologies, your bank can increase its efficiency. A digital footprint will also appeal to the growing number of tech-savvy customers who expect digital experiences in the banks they do business with.
In this article, we'll explore how digital solutions make the account opening process easier, reduce costs, and help your bank stay ahead of the competition.
How Technology Drives Growth
83% of bank consumers believe technology and innovation make it easier for them to use the banking services they want.
But there are benefits for banks too.
- Attracts New Business - Simplifying the account opening process can help your bank or credit union gain more customers and deposit accounts. Potential customers are more likely to complete the sign-up process if they have fewer hurdles.
- Saves Time and Money - Automating tasks reduces the need for manual work, cutting costs. These savings can be used to improve other parts of your business.
- Easier Cross-Selling - A digital account opening system can help your bank understand account holder needs, making it easier to offer additional services like credit cards, small business loans, or investment products. By analyzing user behavior, you can predict which services they may need, creating more targeted offerings.
Features to Look for in a Digital Account Opening System
As your bank considers a modern account opening system, prioritize these functionalities:
Digital First Solutions
Applicants wanting to open an account with your bank should be able to complete every step of the application online at any time, from anywhere and on any device they’re using. Your bank should also consider eliminating in-branch requirements.
Support for All Bank Services
A modern account opening system should be adaptable to different types of customers. Whether it’s an individual looking to open a personal account and get a debit card or an entrepreneur needing a business account, the system should support both with ease, without requiring separate processes or systems. This can also make it easier to scale as your bank’s customer base grows.
Integration With Third-Party Services
Top-tier account opening software has integrations with third-party providers, such as those that facilitate identity verification, fraud detection, and credit bureau services. Security is a top priority for opening new accounts.
A digital account opening system should automatically verify an applicant’s identity using the latest tools and technology to minimize fraud and any potential losses to your bank.
Fraud detection tools can spot suspicious activity in real-time, reducing the risk of fraud.
Additionally, connecting to credit bureaus can ensure your bank has accurate financial information for the applicant, making the process smoother and more secure.
Customizable to Your Bank’s Workflows
A one-size-fits-all approach won’t work for every bank. Your bank has its own procedures, rules, and preferences for opening and managing accounts. That’s why it’s important to choose a configurable system.
A digital account opening system should seamlessly integrate with your bank’s existing workflows without disrupting its operations.
Secure, Scalable, and Cloud-Based
Security is paramount in a digital environment. A digital account opening system should protect and safeguard sensitive customer data at all times.
Additionally, the system should be scalable to grow and handle an increasing number of customers as your bank expands.
Finally, the system should be cloud-based, allowing it to be accessed from anywhere and easily integrated with other cloud-based tools and services.
Digital Account Opening Software Trends in 2025
Software tools assist with everything from onboarding a new customer to identity verification and personalizing the customer journey.
Here are the latest trends to consider when exploring your bank’s online account opening software:
1. Digital Onboarding
A digital onboarding experience offers a faster, easier, and more convenient way for customers to complete their new account openings. Your bank’s customers can use their smartphones or computers to open an account online instead of having to go into a bank branch to fill out paperwork.
Your bank should look for an account opening system with an intuitive, user-friendly interface and guidance for how customers can complete forms and ID verification by uploading their driver’s licenses and documents.
2. Open Banking
Open banking empowers customers to have more control over their financial data inputs. Your bank’s customers can permit third-party apps and services through secure Application Programming Interfaces (APIs), allowing them to access their banking information, such as checking account balances or transaction history.
So, if a customer decides to switch banks, instead of having to fill in all their details manually, the information can be pre-filled and auto-populated from another bank account. This can optimize and speed up the new account opening process while keeping the data secure.
3. Embedded Finance and Banking-as-a-Service (BaaS)
Embedded finance and BaaS are making it easier than ever for non-bank companies like online retailers and other platforms to offer banking services within the apps consumers use every day.
For example, a clothing retailer can have a digital wallet, bank account, or third-party payment system right within its app.
Your bank can become part of the embedded finance momentum and reach new customers where they’re spending their time online.
4. Biometrics
Biometric authentication solutions like fingerprint scans, facial recognition, and voice ID are becoming a common feature of digital account opening systems. These tools offer a faster and more secure alternative to passwords or PINs.
Biometrics makes it harder for an unauthorized user to access an account by verifying the identity of the person opening the account. And it does it all without needing extra paperwork.
It also offers a user-friendly experience, allowing customers to open and access their accounts with just a few taps or a quick face scan.
5. Artificial Intelligence (AI) Solutions
AI enhances digital account opening systems by making them smarter and safer, combating fraud and managing risks more effectively. It can identify unusual patterns, such as fake IDs or suspicious locations, before fraud occurs.
Chatbots are also useful. Instead of using call centers, customers can get help with AI-powered chatbots during the account opening process, 24 hours a day. These bots optimize the user experience, especially for people who need assistance outside of business hours.
6. Tailored Experiences and Solutions
Almost three out of four bank consumers prefer financial institutions that understand their needs and tailor experiences to meet those needs. Data and AI are helping banks personalize the account opening experience by recommending the best types of accounts for customers' needs.
For example, AI can detect when a customer has been researching small business loans from different providers. Once your system flags this, your bank can suggest a business line of credit or other small business financing solution that aligns with its underwriting requirements and the customer’s credit profile.
It can also suggest other banking services for other needs based on a person’s income, goals, or past financial behavior.
7. Fintech Partnerships
Partnering with a Fintech can help your bank stay ahead of the curve while leveraging technologies, like AI or data analytics, to better serve its customers.
Fintechs can also offer special expertise and ready-to-use solutions that can make it easier for your bank to adjust to new trends and regulations.
A Fintech provider like Biz2X can help your bank improve its digital account opening processes, making them faster, more flexible, and better suited to customer needs.
Conclusion
As more people turn to digital systems to manage their finances, banks that modernize their account opening process will have a better chance of growth.
Modern digital account opening systems, featuring AI-driven personalization, biometric authentication, and easier onboarding, help optimize efficiency, security, and user-friendly digital experiences. This can reduce operational costs for your bank and strengthen existing relationships to drive customer satisfaction and growth.
FAQs About Account Opening Systems
1. Why is it important to make it easier for customers during the account opening process?
A better UX improves customer satisfaction and increases conversion rates. This can help your bank acquire more customers efficiently and reduce operational costs.
2. What can a digital account opening system and onboarding process do for our bank?
Customers can open an account with your financial institution at any time, from anywhere, with fewer steps and real-time verification. This speeds up the process, reduces abandonment rates, and offers a great first impression that can result in improved customer engagement and retention.
3. Can traditional banks compete with digital-only banks for account openings?
Yes, but only by modernizing their account opening systems. It’s imperative to adopt solutions that cater to individual customer needs and are mobile-responsive with real-time capabilities.
4. What role does technology play in the modern account opening process?
Technology automates the account opening process while providing personalized solutions for bank customers. It also enables fraud detection and integration between your financial institution’s core banking systems and third-party providers. Tools like AI, biometrics, open banking APIs, and cloud platforms make the process faster and easier, enhancing the customer experience.
5. What are the benefits of partnering with fintechs for online account opening software?
Fintech partnerships can give your bank access to cutting-edge technologies as it adapts to a digital account opening solution. It also provides ready-to-implement solutions that reduce the long-term costs of serving customers.
Ready to find out how a digital account opening system can transform your bank’s growth and customer experience? Contact our team at Biz2X to discover how we can support your bank. Request a demo today.
