The news: Big banks are losing customers to fintechs as early as the account-opening stage. Here’s a look at where banks are falling short in their processes, and what they can do to recover before it’s too late, per Forbes.
Off-task onboarding: Shiny, a PR and marketing firm that works with brands like Barclaycard and lending firm OneMain, conducted an experiment to test different US banks’ digital account opening and onboarding experiences. Its results revealed that the process can be slow, painful, and sometimes even impossible to complete.
Attributes the group looked to assess included: Was the account easy to open and maintain? Were there low or no minimum balance requirements? Were there no or avoidable fees? Was there a hard credit pull to open the account? The group also noted if the account offered a competitive interest rate. Here are some hurdles they encountered:
In today’s digital world, consumers have learned to expect instant gratification. The experiment found that wasn’t possible at a big bank. So consumers are instead turning to fintechs and digital banks, which make speed a priority.
What can banks do? The team at Shiny offered tips for banks seeking to keep customers engaged in the account-opening process.
What consumers want in account opening: The team’s reaction to its experiences aligns with what consumers polled in our US Account Opening Benchmark told us was important.
Continue reading: Review our US Account Opening Benchmark report for other features consumers value during the digital account-opening process.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.