Announcing the Digital Onboarding Platform: Account Activation Solution for Credit Unions
In his book Breaking Banks, Brett King reported that financial institutions spend more than $300 to acquire a new checking account, but the long-term profitability of those relationships can vary widely because, as Javelin Strategy & Research found, more than half of new account openers never become fully engaged. While some institutions are investing in onboarding initiatives, The Financial Brand discovered that nearly half don’t have a program and 80 percent of those that do report that their programs are unsuccessful.
There’s a lot at stake. Fully engaged checking account holders:
- Contribute $5,000 more in lifetime profitability compared to inactive ones
- Own almost three times more financial accounts than inactive members at the new institution
- Are four times more likely to identify the new bank or credit union as their primary financial institution
What an institution does during the first 60 to 90 days after the account is opened determines the lifetime profitability of the relationship. Since members tend to overestimate the effort that’s involved with adopting account-related services like online banking, direct deposit, and mobile banking, it’s critical to guide them through each step of the process.
To help with this, credit unions can participate in a July 17 webinar to help guide credit unions with digital onboarding.
While paper welcome kits are common, members often feel daunted, lose interest, and toss them aside. Moreover, since the communications are paper-based, results are difficult to measure. Yet, the use of paper welcome kits is still common with costs ranging from $3 to $10 per piece.
The profitability of a retail checking business depends on member engagement. So, what can a credit union do? NWCUA’s Strategic Link has partnered with the fintech company Digital Onboarding Inc. as a superior way to onboard members.
Digital Onboarding’s platform offers three key components:
- Smart Campaigns: Email and text campaigns plus gamified incentives drive members to guided Digital Onboarding journeys that help them fully activate their new accounts.
- Guided Journeys: A custom account activation microsite guides members through each step of the process and gamified incentives motivate them to finish.
- Total Visibility: Summary analytics and reports by individual help you see how members progress through each stage of the activation funnel. Actionable insights enable you to quickly optimize for the best results.
After evaluating the Digital Onboarding platform, NWCUA Vice President of Strategic Resources Jason Smith believes the company can help member credit unions modernize and grow.
“We’re excited to have them as a partner focused on helping Northwest credit unions build deeper and more profitable relationships with their members as we work to attain 75 percent market share by 2025,” said Smith.
“When a credit union acquires a new member, they win the opportunity to either forge a deep, profitable relationship or to lose money,” said Ted Brown, CEO of Digital Onboarding Inc. “To build deeper and more profitable relationships, credit unions need to think beyond the account opening transaction and ensure that they have effective onboarding processes in place.”
Considering the acute need for credit unions to more effectively compete, win, and grow, the Digital Onboarding platform can help institutions gain a significant advantage.
Register for the Digital Onboarding webinar, July 17 from 1-2 p.m. PST to learn more.