Online Account Opening Delivers the Goods

Boston, MA - 24 October 2006

A new report from Aite Group states that the potential savings from online account opening is compelling. Even if only 5% of an institution’s eligible new accounts were opened through an online account opening process, the $50 cost improvement per case could generate between $84,000 and $281,000. At higher conversion rates, the savings become astronomical.

New research from Aite Group, LLC, suggests that the potential savings for banks, credit unions, and brokerages that implement online account opening solutions is compelling. At the same time, these solutions are striking a chord with many consumers who expect their financial service providers to deliver increased convenience and ease of use.

In this report, Aite Group provides an overview of the trends that are currently driving increased interest in online account opening solutions. The report also offers institutions a model to help them think through the savings potential.

According to Eva Weber, analyst at Aite Group and author of the report, “Interest in online account opening technology continues to grow. We’re now reaching the point where these solutions are no longer simply nice to have; they are part of what customers expect from their providers.” Weber notes that these solutions are increasing in popularity because customer needs are compatible with institutional strategies such as increasing automation to improve speed of service and to reduce costs.

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