When online account opening is your customers’ only option

Banks have encountered an unprecedented operating environment in the wake of the COVID-19 pandemic. From sudden remote work to the sharp increases in loan refinancing demand and the SBA’s Payment Protection Program, the industry has quickly adapted to new ways of doing business. Meanwhile, branch closures have greatly reduced the ability to service existing customers or form new customer relationships across deposit products.

Digital capabilities are more important than ever. As a result, it’s imperative that banks and fintechs work together to digitize banking services at faster speeds than ever before. In response to the current state of banking, MANTL has added resources to speed up deployments and help more banks launch digital branches over the coming months. Specifically, we are working to get digital branches up and running within 60-90 days from signing. This means that banks can have a fully functioning online account opening platform with real-time core banking system integration before the end of Summer. Because banks should be prepared to serve their customers digitally throughout 2020 and beyond.

What to expect during a 90-day deployment

Prior to 2017, launching a technology tool in 90 days was an impossible task. The recent shift to cloud-based banking software, driven by newer financial technology firms, has enabled faster time to market. While most vendors may still quote upwards of six months, it’s technically feasible to deliver online account opening capabilities in as little as 60 to 90 days.

Because only a small fraction of banks have transitioned their core banking systems to cloud-based platforms, most banks are unfamiliar with the realities of a 90-day implementation. When it comes to online account opening, a speedy deployment is largely dependent on:

• Swiftly establishing core connectivity. speed varies by core provider, but we find that a typical connection takes 2-4 weeks, with some core providers quoting banks as long as 3-6 months. There are ways to enable core connectivity in just one week, so it’s important to consider all options with your technology vendor.
• A focused discovery phase with your technology provider. Ultimately, a bank’s ability to move quickly will depend on the project sponsor having the necessary stakeholders on board across the bank. It’s also important to focus on the must-haves for launch. You can always create a post-launch plan that’ll facilitate the nice-to-haves.
• A limited scope of work. The more deposit products offered at launch, the longer the deployment. MANTL data shows that three types of accounts generally account for 87% of all accounts opened online on average at a bank. A limited scope can still deliver massive results.

The number of third party integrations needed: from the checks provider to the online and mobile banking platform, every integration takes time. With MANTL, customers get access to more than 30 best in class fintech providers in one API. This helps us provide maximum functionality in minimal time.

You may be wondering, is it possible to go live even faster? What about 30 days or less? Vendors need to set the right expectations and at MANTL, we don’t believe in selling false promises. We believe that 60-90 days is the absolute minimum considering all the moving pieces for a project of this scale: stakeholder buy-in and availability, core system connectivity constraints, testing, and approvals, are just a few of the many influencing factors.

Set clear deadlines and commit to your digital strategy

Launching a product in 60 days requires commitment and focus. Here’s how we’ve shifted the process at MANTL to enable faster deployments. Upon signing, banks receive a highly detailed implementation plan assigning clear deadlines for both parties. MANTL’s implementation team then uses performance data across the platform to help banks make quick decisions. MANTL understands that most banks are implementing online account opening for the first time, so we take a hands-on approach and offer best practices along the way.

Banks are playing an important role in helping nations see this pandemic through. Technology firms can do their part by being transparent in their processes, helping banks make data-driven decisions and enabling banks to speed up their digital transformations.

Smart technology moves quickly without cutting corners

60 to 90-day implementations don’t require cutting corners. At MANTL, we pride ourselves on the superior quality and functionality banks have come to expect from our software, including:

• A user-friendly white-labeled front end on your domain (i.e. open.yourbank.com), that lets customers open accounts in 2 minutes and 37 seconds on average.
• Automated funding through Plaid, MANTL’s proprietary ACH funding method, and card funding.
• Automated KYC/AML evaluations (on average 92% of application decisions are automated), and best-in-class fraud prevention tools.
• Automated customer communications including drip campaigns, adverse action emails, and welcome series.
• Analytics so you can see exactly what’s going on across your user base and marketing channels.
• Automatic booking to your core.

Combined, these tools save bank employees hours of manual work and shorten the customer’s application process to just a few minutes. With bank teams inundated with demand for loans, our tools free up resources to focus on those applications while still growing and onboarding deposit relationships that support your bank’s asset growth.

Keep playing the long game

Some banks may be considering “slimmed down” offerings from technology vendors. In essence, they’re considering sacrificing functionality for speed. At a time where banks are resource-constrained, we caution against creating new processes with half-baked systems. It’s a risky approach that may add more complexity than it removes and can make it even harder to launch full functionality later on. Stay focused on the long game. Make investments that will outlast this pandemic.

MANTL customers are experiencing significant increases in application volume due to closed branches. The pandemic doesn’t need to inhibit digital transformation. In fact, it’s even more of a reason to push ahead.

Interested in jump-starting your digital account opening?