Why it’s so hard to convert banking customers

via digital platforms

Being a responsible bank in today’s world is complex.

Doing the right thing by your regulatory obligations, while being customer focused, and keeping your team engaged is like trying to fit together puzzle pieces – puzzle pieces that won’t stop wiggling around!

Trying to keep potential customers engaged in the midst of these competing priorities is an even bigger challenge facing banks right now. Creating a digital acquisition flow, one that keeps website visitors engrossed and engaged from research through to onboarding, is complicated and a significant undertaking.

In this article we’ll outline why overhauling your digital acquisition process is so complex, and how you can simplify it for your bank.

The acquisition landscape: overwhelmingly complex in this digital age

When it comes to acquiring banking customers digitally, the goal posts are constantly changing. It feels like, at any given moment, you need:

The most competitive offer in the market,

while maintaining a strong margin,

while ensuring you lend responsibly,

while investing in your team and internal systems,

while communicating effectively with your customers.

And that’s not all you need to do to get new customers. You need to increase website visitors and then keep them engaged through the application process until they’ve settled or deposited.

It’s overwhelming and complex

So how do you make it simpler? How do you marry up what your bank needs and wants, with what customers need and want?

Perhaps you’ve already recognised something needs to change in your bank? Maybe you’ve started on the journey to create a unified acquisition process, but now it’s proving too difficult to see through?

Consumer expectations: entertain me, engage me and give me an answer now

Another layer of complexity in this digital age is the shift in consumer expectations. In the past, customers needed their bank and had trust that their bank had their interests at heart.

This is no longer the case. Trust must be earned and, if you don’t give customers what they want, they’ll easily find another bank who will. Competition is fierce and it’s not just about who has the best offer. Open banking is coming and it’s going to make it much easier for customers to switch banks.

Customers want a bank who go on their journey with them and keep them involved with engaging communications. They want an answer NOW! And want the whole application process to be simple and smooth – even to the point where it’s entertaining for them.

To meet these expectations is no easy task.

Digital acquisition: more than just an application form

Perhaps you’ve started on the journey to overhaul your digital acquisition process by making some cosmetic changes to your website. Updating the look and feel of your application forms. Creating click-worthy buttons and content.

But this isn’t enough.

When it comes to digital acquisition for banks today, the entire acquisition process must be considered and come together under a genuinely unified strategy.

What do we mean by acquisition process?

Here we’re talking about the process from the first time a customer researches your brand, through to them hitting ‘Apply’, going on to finish their application, gaining approval and then until the moment they’re fully onboarded as a customer – the point of settlement or deposit.

Most research points to less than 15% of online leads even completing the application form. And almost 40% of customers who’re approved, drop out before settlement.

These stats are scary and for good reason.

To truly overhaul your digital acquisition process, you need a comprehensive strategy that considers:

  • Digital research tools and application form user experience best practice based on the latest online consumer buying psychology research
  • Seamless integration with your bank’s CRMs and criteria assessment systems to provide fast decisioning based on application data
  • Instant integration with external credit bureaux and identity checking systems to give quick authorisation against application data
  • Engaging digital communications with customers throughout the application, approval and onboarding process to keep them informed

And how do you do that exactly?

You need decision engines to pull it all together, in real time, to meet customer expectations.

This is where we can help. 

At Sandstone Technology we’ve partnered with 38 banks, from Tier 1 to customer owned, across four continents, to overhaul their digital acquisition process.

We’ve helped these financial institutions increase conversion rates by up to 25%. We’ve learned from the pitfalls along the way and know how to easily and quickly overhaul your digital acquisition process.

It’s a complex project. But we make the complex simple.

Connect with us today to find out more.

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