Pub. 9 2019 Issue 4

6 www.azbankers.org By Alex Jimenez Top Nine Mistakes in Banking Digital Account Opening A S FINANCIAL SERVICES CONTINUE ADAPTING TO THE DIGITAL PRESENT AND EVOLVING FOR THE FUTURE, THE FOCUS ON BUILDING RELATIONSHIPS THROUGH A CUSTOMER-CENTRIC EXPERIENCE BECOMES MORE IMPORTANT EVERY DAY. In a prospective relationship, nothing is more important than the initial experience. A growing number of potential customers are engaging with a financial service company for the first time through a digital application process, making the initial experience a micro- cosm of the failings of legacy financial service companies during their digital transformation. We reviewed current digital banking-account opening experiences in the U.S. and found some troubling trends: 1. Digitizing the existing in-person process Many organizations approach their digital transformations as simply digitizing their existing processes. This is a mistake. Digital technologies offer an opportunity to rethink processes and design experiences based on customers’ needs, wants, and expectations. When an organization duplicates a paper form electronically, it fails to understand the power of digital. 2. Failing to design the experience around target customers Even when an organization appreciates that digital provides a clean slate, many ignore the ideal approach of building experiences around target customers. All new experiences should be grounded in the organization’s strategy, which should include a clear un- derstanding of target customers. It should also include products designed for the process. Prompting customers to choose from all the possible products offered at the branch is a recipe for confusion. 3. Designing the process around outdated “Know Your Custom- er” standards Complying with bank regulations and risk management are im- portant considerations when building a new process. However, redesigning a process from the start is an opportunity for a bank By Alex Jimenez Previously published December 2, 2019 on BankDirector.com