It’s time to lose the 2x2x2 onboarding strategy.
Years before we had the idea to create the Digital Onboarding platform, our executive team worked at Andera, which built the first digital account opening platform. We saw firsthand that a lot of checking account openers never turn into deep and profitable relationships. That, and a conversation with DCU, inspired us to dig deep and understand what banks and credit unions are doing to drive early engagement.
We discovered that not much has changed in the past couple of decades. Institutions have been employing the 2x2x2 onboarding strategy since we got our first flip phones.
Banks and credit unions that follow the 2x2x2 strategy communicate with new account openers two days, two weeks, and two months after a checking account is opened. It’s usually done with a mix of mailers, phone calls, and maybe some emails. As an industry, we can do better.
When someone opens a checking account, institutions face an age-old challenge: Motivating customers and members to use the product they opened. It sounds easy enough. After all, why would someone take the time to open an account and not use it? Friction - a lot of it.
Banks and credit unions are expecting new account openers to do a lot of work. So it’s no surprise that 25 to 40 percent of new checking accounts are closed within the first year.
And the list goes on…
The 2x2x2 onboarding strategy seemed pretty bright a couple of decades ago, but we can do better now. Banks and credit unions that harness the power of digital tools and channels to eliminate friction will enjoy a reputation for being accessible and easy to deal with. They will also enjoy the financial benefits that come from serving customers and members that are fully engaged.
Fixing the new customer and member onboarding approach is one of the simplest ways that financial institutions can better compete, grow, and thrive. For more information and advice on this topic, visit our Resources page.