Practical guidance from Javelin for successful – and secure - digital account opening

January 27, 2017

Although each financial institution requires a tailored approach to meet the expectations of their customers in terms of speed, ease of use, and security, they all share a common goal: de-risking convenience.

Mobile ID Verification In a recent study, Javelin found that almost half of applicants opened a checking account either online or on a mobile device. This trend will grow as 70% of applicants indicated they would prefer to open their next account in a digital channel.

Aimed at finding out what are the adoption rates for digital account opening and to discuss what are the current approaches that financial institutions are taking to combat new-account fraud, Mitek has joined forces with ‘American Banker’ and Javelin Strategy and Research. In our upcoming online session, Looking Beyond KBA: Halting fraud in the digital channel, experts from Javelin and Mitek will address successful ways of overcoming faulty methods of identity verification such as KBA to deliver a hassle-free, secure, and fast account opening experience within the digital channel.

Putting digital identity verification to work to win millennials

The need to solve the security-convenience conundrum is more acute than ever in a market in which banks, credit unions and financial services providers fiercely compete to win over the next generation of customers: Millennials.

Within the financial services industry, the digital experience has become the main stumbling block in engaging Millennial customers. How Millennials Want to Work and Live, a recent research by Gallup, shows that, compared with other generations, Millennials are the most likely to use online and mobile banking channels, with 73% of them stating their preference is a digital relationship with their bank (through mobile, online or ATM channels.)

For financial institutions the identity verification piece of account opening process typically ends the digital customer experience, prompting high rates of abandonment for digital opening (anywhere between 35% and 80% according to MobileStrategyPartners.)

For example, knowledge-based authentication (KBA) does not work for customers with thin credit files, such as immigrants or Millennials, who are then forced to visit the branch to authenticate their identity, they normally decidy to not to go and simply abandon the account opening process. Furthermore, the rapidly increasing number of data breaches exposing consumers’ personal data does nothing but adding mistrust in this type of identity authentication.

Javelin’s Al Pascual addresses challenges and solutions in American Banker Webinar

This digital-first imperative is no news for banks in the U.S. - four out of five already offer digital account opening, or plan offer it within a year. Yet the pressure is for them not only to get there fast, but faster than the competition.

Join our complimentary web seminar, hosted by American Banker’s contributing Editor Mike Sisk, and get expert advice from Al Pascual, Research Director, Head of Fraud & SecurityJavelin Strategy & Research, and Steve Craig, Mitek’s Director, Products & Experience – Identity.

Looking Beyond KBA: Halting fraud in the digital channel is a complimentary webinar hosted by American Banker and brought to you by Mitek. Join this live session on February 7, 2017. 2 PM ET/11 AM PT.