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Rethinking the Digital Account Opening Process

Bank Automation News – by Whitney McDonald

Financial institutions can streamline digital account opening (DAO) for their clients by reimagining the process as neobanks do, rather than digitizing their existing processes.

For the past 15 years, financial institutions have been focused on digitizing — rather than rethinking — the customer’s digital journey, Alex Jimenez, managing principal, financial services consulting at EPAM Systems, told Bank Automation News. EPAM Systems is a digital platform and product designer based in Newtown, Pa.

Banks can rework their account opening processes without the need for complicated artificial intelligence (AI) or machine learning (ML) processes, he said. Instead, financial institutions should consider “how to use digital technology to be able to drive the process with real simple algorithms.”

San Francisco-based Chime, for example, allows clients to open and walk away with a usable account in five minutes, Jimenez said, noting neobanks are “very specific in who they’re targeting … they start with a problem statement, which a legacy organization doesn’t necessarily do.”

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