WHY ARE ONLINE APPLICATION ABANDONMENT RATES SO HIGH? BAI research has found that online abandonment rates for deposit account applications run as high as 70%. The BAI created a new program, Digital Funnel Pulse, to help bankers identify the root causes of the problem. Isio Nelson, head of client engagement at BAI, summarized the problem recently.
“There are two key leaks in the digital funnel that we’re seeing. The first is the customer experience—as banks basically took their offline forms and put them online, they found out that wasn’t the right way to do it. The second leak is related to authentication. There’s a balancing act where banks want to put some friction into the application process to try to thwart fraudsters, but many times that friction gets too difficult for the good customers, who are simply trying to open an account. “
Online account opening is an emerging key challenge for banks these days. The winners will get it right.