User Experience: Offering a 3-Minute-or-Less Application

How FIs can exceed consumer expectations with a seamless account opening and loan origination platform

With the power of technology at our fingertips, people expect instant outcomes, from search engine results to banking. For everyday financial products, like checking accounts or credit cards, consumers no longer want to come in-branch to complete their application. They want mobile-first capabilities and immediate access.

In a study conducted by Alkami, 39% of survey respondents stated that their “banking platform’s UX and functionality” was the most important reason for defining a user’s ideal FI. At the end of the day, customers and members want an experience that is intuitive and engaging. 

How can FIs win the user experience battle?

According to The Financial Brand, only 11% of FIs allow users to complete a mobile-first loan application in under three minutes. Completing an application for a new deposit or loan should be as simple as a couple of steps.

While FIs may think of their competition as neighboring banks and credit unions, their biggest competitors are the megabanks and neobanks with innovative experiences. To stay relevant for customers and members, FIs need to deliver a seamless digital experience. 

Among consumers, they have turned to neobanks for the personalization they receive. By personalizing the banking experience, consumers feel a connection to their FI. As humans, it’s only natural that we want our individual needs addressed. FIs need to fill this gap by personalizing UX.

How can FIs achieve this? By making customers and members feel seen and understood. Alkami has entered the digital account opening and loan origination industry to empower FIs with the technology to start the relationship and cultivate it through digital banking. 

How can FIs exceed expectations during onboarding?

For FIs who offer digital onboarding, many users are still unable to complete their application without coming in-branch. In each step of the application that a user experiences friction, the higher the chances that they drop-off, potentially ending the relationship they would have had with your FI. 

As consumers prioritize the user experience (UX) when selecting an FI, onboarding processes must adapt to exceed consumer expectations. It is important to remember that UX is objective, not subjective. UX goes far beyond design preferences to address ease of use.

“The functionality of the digital experience determines the success (or failure) of a financial institution in earning engagement, loyalty, and revenues through cross-selling of personalized and timely products and services,” (Alkami, 2021).

The financial services industry is one of the most regulated industries in the world, and for good reason — consumers, businesses, and governments trust FIs to be dependable and put their funds to good use. FIs face explicit regulations for verifying a user’s identity, identifying their intended use of funds, risk assessing the user, and many more back-office processes. Rather than burdening the user, FIs should leverage data to improve functionality and automate manual processes.

How can FIs use data to enhance user experience?

In the digital era, there’s a tremendous amount of data available on customers or members, FIs just need the right tools to harness it. Consumers know their data is available and want their FI to use it to their advantage. Focused on simplicity, Alkami’s approach to digital account opening and loan origination is highly dependent on the financial products added to the user’s shopping cart. By configuring onboarding workflows to the individual user, users complete minimal fields and submit their application in three minutes or less.

To support users throughout the application, Alkami deploys a multi-layered approach to identity verification with integrations for Non-Documentary Customer Identification. While some FIs are still hesitant to transform their Customer Identification Process (CIP) from Documentary to Non-Documentary, FIs can strengthen their internal operations while improving UX. Instead of requiring in-branch verification or document uploads, users can simply enter their address, phone number, date of birth, and social security number.

Through Alkami’s extensive API network, FIs can streamline Know Your Customer (KYC) processes by validating the user’s information against third-party databases for instant identity verification. Additionally, Alkami leverages integrations for instant account verification; empowering users to seamlessly fund accounts in seven seconds or less. This integration automates FIs’ compliance efforts with Nacha’s account validation rule for enhanced fraud detection on ACH transfers.

To ensure users are receiving real-time decisions on their application, Alkami deploys powerful integrations with credit bureaus and identity verification providers for rules-based decisioning. Alkami alleviates back-office teams from manual processes with end-to-end dataflow to core processors for automated account creation and digital issuance of debit and credit cards to Apple and Google Pay wallets.

With Alkami, an application that starts digital stays digital. No in-person visits are required unless the customer or member wants to visit the FI. By prioritizing UX, design, and ease of functionality, FIs can exceed user expectations, onboard, and nurture that new relationship for years to come. 

Interested in learning how Alkami’s digital account opening and loan origination platform can enhance your operations?

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