Digital Onboarding Can Help Credit Unions Drive Member Engagement and Profitability

The Strategic Link partner offers five tips for effective new account opening and onboarding processes.

5/28/2019
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The credit union industry is more competitive than ever. New digital technologies, rising nontraditional competitors, and changing consumer expectations dot the landscape and pose a challenge to credit unions seeking growth.

Investing heavily in new member acquisition campaigns can drive growth, but according to Strategic Link partner, Digital Onboarding, credit unions wanting to maximize engagement and profitability should take a more strategic approach to the new account opening and onboarding processes.

Digital Onboarding offers credit unions solutions to forge deep relationships with new account openers. Its digital platform drives increased engagement and profits by motivating potential members to adopt products and services.

“Building member engagement is essential for credit unions to drive growth,” said Northwest Credit Union Association Vice President of Strategic Resources, Jason Smith. “Digital Onboarding helps engage new members where it counts — at the start of the onboarding process — with a modern approach that’s completely digital.”

According to the 2017 Digital Banking Report, fewer than half of credit unions have a structured onboarding program in place for new account openers. For an effective onboarding process, credit unions should consider implementing the following strategies:

  1. Plug the Funnel: Convert Abandoned Applicants
    When it comes to deposit accounts, 70 to 80 percent of digital applicants quit before they finish their applications. By capturing and immediately saving applicants’ names, email addresses, and mobile numbers, credit unions can send email and short message service, or SMS, text reminders that motivate abandoned applicants to come back and open their accounts.

  2. Earn More: Prioritize Customer and Member Engagement
    Engaged members use account-related services like direct deposit, bill pay, and debit cards, so they’re far more likely to stick around. Unfortunately, the majority of customers and members aren’t fully engaged. Investing in an effective onboarding program can turn this around. Fully engaged members generate an average of $212 per year in incremental profit compared to inactive members. 
  1. Welcome New Account Openers Immediately
    For maximum success, credit unions should welcome new account openers immediately. Waiting a few days can mean the difference between a fully engaged member and an inactive member. As most consumers are seemingly inseparable from their mobile devices, 89 percent would like to use SMS to communicate with businesses according to Dimension Data’s 2016 Global Contact Centre Benchmarking Report.
  1. Remind Them Often
    If a new account opener doesn’t engage in the first 90 days, chances are, they never will. JD Power and Associates found that new account openers should receive five to seven communications from their financial institution in the first 90 days.
  1. Be Their Guide
    If someone takes the time to open a new account, they probably had the best intentions of using it, which doesn’t explain why 25 to 40 percent of new checking accounts are closed within the first year. One reason may be the perception that the enrollment process for services like online banking, direct deposit, and bill pay is difficult. To ease the process, give members an easy-to-follow digital guide with one-click access to enroll in additional products and account-related services and keep communications simple.

Implementing the above strategies can help strengthen credit unions’ onboarding process and drive growth. To learn more about Digital Onboarding, or to schedule a demonstration for your team, please contact Jason Smith. To learn about Strategic Link’s partnership with Digital Onboarding, visit its webpage.