The past few years have brought around significant changes in the BFSI sector. Fintech has become a prominent part of the banking industry, bringing us innovation to simplify banking. Our generation is increasingly inclined towards convenience and speed, not just with banking but with other aspects of life. Digital banking is not just a luxury for banks; it’s necessary to have an edge in the highly competitive world of banking. Technology plays a vital role in the advancements of digital banking, allowing banks and financial institutions (FIs) to provide a smooth and seamless customer experience to their customers. The first and foremost in this digitization of services is the online account opening service. 

Opening a new account in any bank gives you the first impression of that bank’s service. It’s like your first conversation with a new person. Banks need to make sure the account opening process they facilitate for their customers is nothing less than impressive, with all the necessary guidelines, tips, instructions, and a user-friendly interface. People prefer digital account openingbecause they need to get the job done as quickly and as smoothly as possible. A fully effective online account opening software that matches every user’s need is something banks and financial service providers should adopt. 

Here is how banks are benefitting by using a good online account opening software – 

1) Acquiring new customers quickly: 

Banks are looking for new customers constantly to drive their business. Once people choose a bank, they usually use the same bank’s services for a long time. The finance world has become competitive, and with no digital account opening service or an inadequately effective one, onboarding rates are likely to drop. In contrast, having a sophisticated online account opening service can easily help banks and financial service providers onboard new customers. People are significantly less likely to prefer heading to a bank branch, standing in long queues, filling out complicated paperwork to open a simple bank account. With pandemic restrictions in place, people prefer to bank without stepping out of their homes, and hence, a decent digital account opening software can help accelerate the customer onboarding rates. Banks and FIs need to ensure they provide a great customer experience to reduce the customer abandonment rates. It’s of no use if your digital onboarding process requires interventions like a branch visit. The onboarding process has to be frictionless and seamless. 

2) Faster Identity Verifications: 

A traditional account opening process generally takes a long time because the customer has to submit a lot of paperwork, fill out extensive forms. All paperwork and document proofs are manually verified by the bank employees manually, which is cumbersome and takes a lot of time. Online account opening software uses technologies like OCR to read details from the document proofs submitted. Furthermore, all the verifications for online account opening are done in compliance with the regulatory bodies, leaving no or minimal chance for mistakes. Banks and FIs need to be careful about customer’s security and privacy while facilitating digital account opening software. An excellent online account opening software provides the perfect balance between maintaining a great customer experience and maintaining complete security. 

3) Smarter data analysis: 

Banks and financial service providers can also leverage online account opening software to build more competent analysis from the user data collected. With increasing customer onboarding rates, the customer data piles up. Technologies like AI and ML can help you segregate, analyse and build valuable insights from the customer data. Banks and FIs can further translate this data into specialized marketing campaigns to drive customer onboarding rates and provide more value to the consumers. With simple and effective digital account opening software, banks and FIs can also find it easy to cross-sell other products suitable for the respective customers. For instance, if a customer of age 28 opens a new banking account, the bank can cross-sell products like home loans or matrimony loans to this customer, with a greater chance of 

Likewise, the FIs can leverage the data collected in the account opening process to drive sales and hike up the customer onboarding rates. 

Additionally, theCOVID-19 crisis has dramatically changed the way people think and act. A few years ago, people would prefer to visit banks to open a new account or apply for a loan. But a growing number of people are choosing digital means for banking, and this rapid change in the BFSI landscape has ramped up the competition in the digital banking sector. Several banks are modernizing their infrastructure to support digital interactions with their customers. The cherry on top is the convenience of being able to bank from the comfort and safety of your own home. In today’s fintech industry, competition for a flawless digital banking experience is tight. Still, with a sophisticated and highly effective online account opening the software, banks and FIscan reach heights they never have.