In general, opening a new digital deposit account should be a simple process. From a holistic point of view, the process should include:
Step by step instructions with details of what’s required before starting the application; progress meter; minimal data entry and pre-fill whenever possible to minimize cognitive load
Identity verification – human questions and biometrics that catch the “bad actors” while letting the customer that wants to bank with you through
Customization of the product, such as choosing to get a debit card or checks and setting up preferences
Confirmation that all information that was captured is accurate and complete
Upon approval, which should be quick, funding of the account
Finally, moving to the onboarding and fulfillment process
Yet, the DAO experiences of a decade ago, which many banks continue to offer today, were designed as an alternative to opening an account at the branch. The process is built around know your customer (KYC) principles and identification routines that don’t reflect current technology capabilities and customer expectations. The application processes have also become bloated with questions that aren’t required to open an account – likely due to someone within the organization having an idea to capture as much information about the customer upfront for some future use that never materialized.
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