NEW YORK–(BUSINESS WIRE)–Financial institutions confuse multichannel account opening with omnichannel account opening, according The Omnichannel Account Creation Report released today by MANTL, a leading provider of account creation solutions. More than a third of banks and credit unions (35%) that claim to offer omnichannel account opening lack the ability to start an app in one channel and resume in another channel, revealing that they instead have a multi-channel account opening.
“These data are alarming because multichannel technology differs greatly from omnichannel technology. A multi-channel account creation strategy has serious limitations, as it creates siled customer journeys and will not increase customer satisfaction or lifetime value. Business and retail customers expect seamless experiences across all banking channels and only omnichannel technology will meet that demand while improving an institution’s bottom line,” said Nathaniel Harley, Co-Founder and CEO of MANTL . “The adoption of true omnichannel account creation technology is still early in regional and community banks and credit unions. However, the data shows one thing very clear: omnichannel account creation is the future of banking, and banks and credit unions are prioritizing adoption. »
The Omnichannel Account Creation Report, commissioned by MANTL in partnership with The Financial Brand, surveyed US banks and credit unions to identify omnichannel banking priorities and explore existing consumer and business account opening capabilities by channel. The report’s findings underscore the important role that omnichannel account creation technology will play in the ability of financial institutions to remain resilient and competitive. The report also revealed significant opportunities to leverage technology to improve operational efficiency and better serve business customers.
The omnichannel emergency
Currently, only 12% of banks and credit unions offer omnichannel account opening for businesses and consumers. The report found that relationship managers remain the main driver of new account openings and that financial institutions only open a small volume of deposit accounts through digital channels. Almost half (48%) of financial institutions open less than 20% of their consumer deposit accounts online.
However, there is a growing urgency to implement omnichannel account creation technology in the immediate future. Over the next 12 months, half of institutions (50%) plan to implement consumer omnichannel account opening and a quarter of institutions (27%) plan to implement commercial omnichannel account opening.
Businesses are underserved from a digital banking perspective
The majority of banks and credit unions (61%) open nearly all of their new business accounts (80-100%) through a relationship manager. Two-thirds of establishments do not offer the option of opening a business account online (68%) or in a call center (67%). This number is even higher for a mobile app (78%) or an in-branch kiosk (90%).
“Many financial institutions identify themselves as commercially focused, but they don’t invest in commercial banking experiences,” Harley said. “This is particularly problematic considering that business owners are also consumers and expect the same digital convenience across all banking channels.”
Branch sentiment towards digital channels
Surprisingly, a quarter of banks and credit unions (25%) say that branch staff tasked with onboarding new customers feel threatened by online account opening channels. Currently, one in four financial institutions (22%) have no way of assigning new accounts opened digitally to a specific branch or relationship manager and 37% of banks and credit unions believe that assigning account would change the way their branch staff view online account opening. .
“This disconnect signals larger issues that we’re seeing industry-wide with regard to banking technology adoption and change management,” Harley said. “The benefits of modernization must be communicated to all levels of a financial institution and bank leadership must drive adoption. Invest in technology that improves the employee experience, empowering branch staff to become more data-driven and better serve their customers, will help drive adoption.”
To view the full report, please click here. For more information about MANTL or to schedule a demo, please visit: https://www.mantl.com/request-a-demo/
About the Omnichannel Account Creation Report
The Omnichannel Account Creation Reportcommissioned by MANTL in partnership with The Financial Brand, surveyed US banks and credit unions to identify omnichannel banking priorities and explore existing consumer and commercial account opening capabilities by channel.
The survey was conducted by The Financial Brand among 182 U.S. bank and credit union employees between March 9 and March 28, 2022, using an email invitation and online survey . For more information on the report, please click here.
MANTL is a fintech company that offers omnichannel account creation software for banks and credit unions. Consumer Deposit Origination by MANTL is one of the fastest and most powerful solutions on the market, allowing new prospects to open accounts in less than three minutes, allowing existing account holders to open additional accounts in one single click and reducing fraud by up to 67%. Commercial Deposit Origination by MANTL is a first-of-its-kind solution that reinvents account opening for businesses of all sizes by automating up to 97% of application decisions. MANTL clients have raised billions in core deposits to date. Founded in 2016, MANTL is a privately-held company headquartered in New York City and backed by prominent venture capitalists. For more information, visit mantl.com.