It's a Thing: Software that helps customers switch banks

"It's a Thing" is a regular column that helps identify emerging issues or provides relevant, but unnoticed information. If you have ideas for the "It's a Thing" column, email msemmann@wisbank.com.

Maximizing the Onboarding Experience

A great deal of effort is put into enticing new customers. Institutions are eager to open new accounts and are hopeful that these new accounts generate revenue. But, simply opening new accounts is not enough. Your new accounts are at risk if these new customers are not engaged at the beginning of the relationship. In fact, customer attrition is three times more likely in the first 90 days of opening a new account. If you fail to engage your new customers, your financial institution is at risk of missing out on the revenue these customers can create. According to a Gallup study, account holders that are fully engaged bring $402 in additional revenue per year to their primary financial institution and affluent account holders provide $869 in additional revenue. By focusing on the onboarding process, your bank can encourage new customers to become actively engaged primary account holders. There are three things you can focus on right away during the onboarding process to engage and strengthen your customers experience, while at the same time securing a profitable long-term relationship. They are:

Account Opening

One of the first interactions a new customer has with a bank is during the account opening process. Today’s consumers have high expectations when it comes to what they expect when opening an account. A manual process or in-branch solution is no longer acceptable. Consumers want to be able to open an account from the comfort of their own home when it is convenient for them. Do you really have a fully digital account opening solution that can be completed fully online?  If not, it may be time to evaluate your options. Account opening software such as Avoka and Bottomline Technologies are good solutions.

Online Banking

Getting your customers to use your bank can be challenging. If you can get new customers to engage with your bank, you are more likely to have success. The convenience of online banking is a great step to get a new customer familiar and comfortable with your institution. Make sure you are providing your account holders with a strong online banking solution. Give your customers access to their account balance, payments, and transfers from a mobile device or personal computer. If you can get a customer to use online banking, they are more likely to be engaged at your financial institution. Companies like NCR and Kony provide strong online banking solutions.

Automated Account Switching

Perhaps the most important task to encourage your new customers to become primary account holders is to capture the customers direct deposits and fund the new account. When opening a new account, there is no guarantee that your new customer will use their new account once it has been opened, but by capturing the new account holders’ deposits and automatic payments, the likelihood of the account being used by the customer skyrockets. This also provides you with a glimpse of what products the customer has such as mortgage, car payment, etc. that can be used to cross-sell that new customer. 

ClickSWITCH is an automated account switch platform that can be used out of the box or integrated to enable your new and existing customers to switch their direct deposits and recurring payments from their previous accounts to your bank in minutes. ClickSWITCH can be used in the branch, on a personal computer or mobile device. The software eliminates the hassle for your customers, removing the burden of having to find, research, contact, print and mail forms manually, reducing the stress that comes with switching to a new bank.

By providing customers with a positive onboarding experience, you can improve the customer experience from the beginning of the relationship. An excellent customer experience will improve the relationship with your account holders, encourage referrals, reduce customer churn and most importantly increase revenue for your financial institution. Focusing on engaging with your new account holders and activating those accounts will result in more fully engaged account holders. Maybe it is time for your bank to dive into your onboarding process.

About ClickSWITCH 
ClickSWITCH is a unique account holder acquisition technology for financial institutions that simplifies the process of bringing new account holders onboard by quickly, safely and efficiently switching their recurring payments from their old accounts to new ones. Based in Minneapolis, MN, the company's industry-leading solutions help clients to increase account holder acquisition and activation rates, engage during onboarding, and cross-sell products to capture full profit potential. ClickSWITCH is a technology leader delivering world-class solutions to financial institutions of all sizes.

About Commerce Ventures

Commerce Ventures is a leading venture firm focused on technology innovations in the FinTech and Commerce ecosystem.  Thus far, the firm has invested in fifty portfolio companies, including leading FinTech and and retail technology startups such as Bill.com, Blooom, Forter, InAuth, Kasisto, Marqeta, MX, Narvar, RetailNext, SessionM, Snapsheet, Socure, Theatro, and Tulip Retail.