The news: The number of US bank accounts opened digitally declined sharply last year against the backdrop of the coronavirus pandemic, per Insider Intelligence’s recent report, Account Opening in the Next Normal.
Openings for 2020 clocked in at 10.1 million, or a 35.1% drop from before the pandemic. However, the channel-based drop was coupled with an overall decline in accounts opened during the period. As banks shut down their branches, digital channels made up a larger share of account openings.
By contrast, this year we expect account openings to surge during the return to normalcy as pent-up demand for the products is unleashed. Through 2024, we project that the growth rate will normalize to incremental levels after the backlog is cleared.
The bigger picture: Digital-only banks are projected to recover from the digital account-openings dip markedly faster than their incumbent counterparts: