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The meteoric rise of digital engagement: Part two

How digital engagement is transforming the financial services sector

By: Keith Riddle, SVP, Chief Product Management Officer

October 22, 2015 -- As credit unions leverage the convergence of digital banking and payment functionality to increase and retain membership, the next phase of the digital journey must be taken into account: the onboarding experience.

The pursuit of digital onboarding

As credit unions begin to evaluate more efficient and innovative member onboarding techniques, the enhanced functionality associated with performing the account opening process through a digital platform will become an increasingly important component of the strategy.

The Financial Brand and Digital Banking Report issued an extensive study, outlining the characteristics of an effective digital account opening platform and the tremendous growth in engagement levels through the mobile device. Pertinent excerpts from the study are as follows:

  • By 2020, the vast majority of accounts will be opened outside the branch via digital channels with mobile being a significant component of this volume.
  • Digital and mobile functionality is being introduced to the physical branch environment, improving the entire new account opening process and allowing for a better new member onboarding process.
  • According to Javelin Strategy & Research, more than three of four credit card applications were opened using digital channels in 2014. In addition, almost half of all checking accounts were opened online, on a smartphone or using a tablet in 2014.
  • As many as 70% of consumers indicate they will be using digital channels to open new accounts in 2015.

Developing an effective user experience

Corporate One believes the digital onboarding process represents a significant growth opportunity for credit unions as long as best practices are implemented.

Some of these best practices include a straightforward and consistent user experience for each channel (online, mobile and branch), prominent positioning of what the member should expect during the account opening process, and simplified data collection methods incorporated within the user interface design. 

With that stated, credit unions should consider the following facts when evaluating digital account opening solutions:

  • Today, 58% of consumers own smartphones and 42% own tablets, and those numbers are increasing at exponential rates. Estimates for the percentage of all web traffic coming from mobile devices range from nearly 20% to 30%. Additionally, approximately one in four online applicants apply from a tablet or smartphone.
  • While the number of new accounts opened by a smartphone or tablet jumped more than 50% in 2014, the percentage of new checking accounts opened with a mobile device was still under 20%. 

Developing a digital engagement strategy

The complexities in evaluating the applicable market drivers and responding with effective digital strategies can present significant challenges to credit unions. Corporate One is here to assist in that effort.

Work with our team to outline a list of digital strategies and determine the payment solutions suite and onboarding process that best aligns to your strategic objectives. Most importantly, leverage the breadth of information and resources available to you as a member for assembling a holistic digital engagement strategy.

We look forward to helping you excel within the evolving digital economy!

Missed the first installment? Read The Meteoric Rise of Digital Engagement: Part One here.

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