Grow Deposits with FIS Digital Account Creation
May 23, 2017Lynn Jordan
Institutions are challenged with:
• Protecting customers from the
emerging threat landscape
• Providing tailored, personalized experiences
• Delivering on expectations for real-time
• Creating data-driven connections and
value across converged channels
• Driving new revenue streams
• Increasing engagement and loyalty
Expectations are rising
The Competitive
Landscape is Changing
Drive Innovation and Expand Digital Capabilities
Grow Sales and Increase Engagement
Enhance Security and Reduce Fraud
Expand Real-Time Offerings
Enable Data-Driven Marketing and Analytics
Create Operational Efficiencies
Our VisionProvide industry-leading digital solutions that keep our clients
competitive and relevant with the top financial institutions
Grow Deposits with Online/Digital Account Creation
• Account Creation: a deposit acquisition platform for the Digital Channels
• FIS client perspective
• Discussion
Philip P. Richards
SVP – Operations & Strategy
Cassidy Beckstrand
AVP – Online Banking Manager
Over 50% of Consumers use Digital Channels to Open Deposit Accounts
Consumers who shop in digital channels, expect financial institutions to provide all the information they need to choose products and apply for new accounts in digital channels.
Online/Digital Account Creation
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• Allows customers to easily apply, open and fund new deposit accounts through your public website
• Supports checking, CDs, savings, and money markets
• Applicant information is screened and verified for CIP information
• Applicant can be screened through debit bureau and credit bureau based on your requirements
• Customers can fund the new account through card transactions, electronic ACH transfer, check or direct deposit
• Includes a “Fast Path” for your current customers
• Significant level of integration with the FIS cores MISER, Bankway and HORIZON
• New Responsive Design User Interface expands your reach into all Digital Channels
Full-featured solution for deposit acquisition in self-service channels
Success in Digital Account Acquisition Includes Sales and Marketing Strategies
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Account Creation is the third step in the process
• Your deposit acquisition strategy needs to include a digital marketing strategy.
• We recommend visiting a variety of FI websites to see how others are presenting their product offers.
• Prospects should be directed to your website from a digital search. Google “checking account” for a state in your footprint to see your competition.
• If you are expanding into Digital Account Opening with Responsive Design, your sales pages on your public website will need to be in Responsive Design for those shoppers that come in on their phones.
Digital Marketing is a Critical Stage of the ProcessSuccessful FIs are investing more every year
• The process needs to be different from branch account opening. Why?
– The customer’s attention is easily lost
– Using a laptop, or a tablet or a phone is different than sitting in a branch bank.
Your prospective customer can easily slip away if:
The process is too long or hard to navigate
Questions seem intrusive or irrelevant
The product offer seems overly complex
They feel uncomfortable or confused by the process
• Regulations allow for a “paperless” process
– Non-documentary verification of CIP information
– eSign acceptance of disclosures
– Signature cards not required when other processes are in place
• The most successful clients do not confine themselves to traditional
assumptions and processes but focus on building the best possible user
experience.
The Digital Account Opening ProcessUser experience is different from the branch account opening process
FIS Can Help You Design an Experience That Will Meet the Expectations of Your Prospects
• When you are implementing your Digital Account Creation experience, it is important to make branding and configuration choices that will provide a streamlined customer experience.
• Your public web site is critical to the sales process. You may need to refresh your public website to move the customer easily into the digital account opening experience.
Forrester recommends, when designing the account opening process: “Reframe the discussion around the customer
rather than internal operations. Use Journey Maps to help employees adopt an outside-in perspective and understand
how their individual actions can collectively result in good or poor customer experiences”
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Why is it Important to Keep it Simple?
Starts after the customer has selected a product
The Account Creation Process
• Applicant enters information for application phase
• Selects product options – ATM cards, checks, overdraft protection, etc.
• Reviews and accepts disclosures electronically
• Immediate identity verification (IDV) with OFAC screening
• Out-of-wallet questions (IDA)
• QualiFile screening
• ACH funding with immediate account validation or test transaction validation
• Check funding
• Card funding – credit and debit cards
• Customer record is created and account is opened in deposits
• New account information is given to the customer
Information
Gathering
Applicant
Screening
Funding the
Account
Account
Opening
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The new Responsive Design User Experience expands your market reach to tablet and phone users.
Digital Account CreationIt’s here!
User experience options to support your sales strategies
Deposit Account Opening on Account Creation Platform
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SINGLE ACCOUNT CREATION ADMIN TOOL FOR ANY UX
INTEGRATION TO Your FIS Core Deposit System FOR ONGOING SUPPORT
Digital Account
Creation
All Device Sizes
Browser
Mobile
Account
Opening
Phone App
Pilot 2017
AND
New account opened
and delivered online.
Activation of online and
mobile servicing
Funding the account:
multiple options and
safeguards
Full evaluation of the
applicant from identity
verification to product
qualification
Complete application
and accept disclosures
Online Account
Creation
PCs and Tablet
Browser
Phase 1 (early 2017)
• Leverage mobile responsive UI from OAC
platform wrapped in a mobile banking app
Phase 2 (proposed TBD)
• SSO for existing customers to fast path OAC
user experience
Phase 3 (2018 target)
• Add functionality that allows for data capture
from a photo of the ID
Mobile app Account Opening Roadmap: Mobile integration options (pilot 2017 Q2)
Bankway, MISER and
HORIZON Integration
FAQ: How Many New Accounts Can We Get?
From Javelin Research
– A large regional bank reports “tremendous year-over-year growth
in online account opening” for checking after upgrading its digital account
opening capabilities, but “we’re not quite at the one-third mark.”
– An FI’s size is a “horrible predictor” of digital account opening success.
The most successful FIs are the ones that emphasize digital account opening.
– Banks that succeed in online opening are the people who put a focus on it;
one FI might be successful, while others struggle because marketing support
is weak. “You still have to drive awareness and interest before you get clicks.”
FIS observations
– Success in account acquisition in the digital channels is driven by the FIs ability to
bring qualified, motivated people to the start of the process.
– The most successful clients are those that work at it all the time, adjusting
the process to maximize their results.
– Success metrics will be driven by the strategy and don’t look the same
for every FI.
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FIS Digital Account Creation Client Panel
FIS Info Share - May 2017
Philip P. RichardsSenior Vice President - Operations & Strategy
Online Account Opening
OAC
IC Federal Credit Union
Located in North Central MA
$550 Million in assets7 Branch Locations35,000 MembersField of Membership - 6 counties
Worcester, Middlesex, Franklin, Hampden, Hampshire, and Norfolk
FIS Client Relations
• Miser Core Banking Application
• Consumer Banking (CeB) and Business Banking (BeB) – Including Bill Payment People Pay, External Transfers, ACH and Wire Transfer
• Connections CRM
• Online Account Creation• Pilot for OAC
Debit Card Auto-Fulfillment
• EFT-Debit
• Credit Cards – Card Base
• Web Services
Online Account Creation
Adding6-Month CD1 Year CDand aMoney Market(in production now)
Application Stats
Average of 53 OAC Applications per month
Abandoned or Failed:- Abandoned (potential reasons why)- Cannot save and resume application- Existing Members need to verify last statement balance- Failed - largely due to efunds failure
Summary 2016 thru March of 2017OAC To Date Average
Completed 141 10In Progress 37 3
Abandoned 279 19Failed 289 21
# of OAC Applications 746 53
Completed Rate 24%Abandoned Rate 37%
Failed Rate 39%
Online Account Creation
• Upgrade from OAC to DAC (Digital Account Creation) will offer an easier experience on any device.• Expands market reach with responsive design for
mobile phones and tablets • Fully digital with touch screen and orientation
functionality
• Enhancement to CeB (Q4-17) with Account Opening through the platform that will provide current Members the ability to easily open new accounts.
Who is Applying Online
18-24 25-34 35-44 45-54 55-64 65+
30%
22%
15%
8%
0%
Relationship Balances
OAC Accounts & Relationships 2016 thru March 2017
Opened with OAC Other Product & Service Balances
OAC Product Total Acct Bal #Accts Dep Bal Loan Bal Average
Intelligent Checking $ 177,258.00 98 $ 822,398.34 $ 1,302,146.70 3
Intelligent Savings $ 301,654.08 33 $ 379,109.63 $ 545,534.00 3
Veterans Reward Checking $ 1,392.61 6 $ 8,698.63 $ 486,428.22 4
Veterans Savings $ 45.08 2 $ 8,466.43 $ 316,849.12 2
Grand Total $ 480,349.77 139 $ 1,218,673.03 $ 2,650,958.04 5.52
New MemberAcquisition (planned for late Summer/Fall)
Communicate via email to non-members with link to hidden promotional page
Tracking behindthe scenes with a special code from the “Open Account” button that passes through to OAC, thento our Miser Core andConnections
Future Road Map
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FIS Digital Account Creation Client Panel
First National Bank of LaytonOnline Account Creation (OAC)
Bank Profile
• Open since 1905
• Northern Utah community bank
• 7 branches
• $300 million in assets
• Launched OAC in January 2017
OAC Process Overview
• Checking, savings, money markets and CDs
• Online products mirror branch products
• Questions go to customer service department
• Accounts are opened and serviced under branches
• Customers can fund through internal and external transfers,
checks, and direct deposit
OAC Results
January through April
• 200 OAC applications
• 34% of all personal accounts opened
Strategies
• Actionable items for our digital marketing
• Promotions (CD special, bonus promo)
• Tech bar
• Abandoned applications
OAC Advice
Implementation
• Determine how your institution will use OAC
• Task force
• Use the documentation
• Test the ACH funding process thoroughly
• Use and review settings for IDV, IDA & eFunds
• Use the FOS fraud prevention letter
• Online banking (CeB) auto connection off
OAC Advice
Launch
• Only move to production when ready
• Work closely with web team
• Email disclosures for compliance
• Website landing page information
OAC Advice
Post Launch
• Internal tracking and Acquire reports
• Get CDD follow up project implemented
• IDV passport and account generating with core
Overall Experience
• Simple user experience
• Good project management
• Look forward to using responsive Digital Account Creation
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Discussion
What’s Next
Visit us in the Solutions Expo
Digital Account Creation kiosk