NEW YORK, NY – Nov. 16, 2022 – Financial institutions are mistaking multichannel account opening for omnichannel account opening, according to The Omnichannel Account Origination Report today released by MANTL, a leading provider of account origination solutions. More than one-third of banks and credit unions (35%) that claim to offer omnichannel account opening do not have the ability to start an application in one channel and resume it in another channel, revealing they have multichannel account opening instead.
“This data is alarming because multichannel technology differs greatly from omnichannel technology. A multichannel account origination strategy has severe limitations, as it creates siloed customer journeys and will not grow customer satisfaction or lifetime value. Commercial and retail customers expect seamless experiences across all banking channels and only omnichannel technology will meet that demand while improving an institution’s bottom line,” said Nathaniel Harley, co-founder and CEO of MANTL. “The adoption of true omnichannel account origination technology is still early at regional and community banks and credit unions. However, the data makes one thing abundantly clear: omnichannel account origination is the future of the banking industry and banks and credit unions are prioritizing adoption.”
The Omnichannel Account Origination Report, commissioned by MANTL in partnership with The Financial Brand, surveyed U.S. banks and credit unions to identify omnichannel banking priorities and explore existing consumer and commercial account opening capabilities by channel. The report findings underscore the important role omnichannel account origination technology will play in financial institutions’ ability to remain resilient and competitive. The report also revealed significant opportunities to leverage the technology to improve operational efficiency and better service commercial customers.
The urgency for omnichannel
Currently, only 12% of banks and credit unions offer omnichannel account opening for both businesses and consumers. The report revealed that relationship managers are still the primary driver of new account openings and financial institutions only open a small volume of deposit accounts via digital channels. Nearly half (48%) of financial institutions open less than 20% of their consumer deposit accounts online.
However, there is a growing sense of urgency to implement omnichannel account origination technology in the immediate future. In the next 12 months, half of institutions (50%) plan to implement consumer omnichannel account opening and a fourth of institutions (27%) plan to implement commercial omnichannel account opening.
Businesses are underserved from a digital banking perspective
The majority of banks and credit unions (61%) are opening almost all of their new commercial accounts (80-100%) via a relationship manager. Two-thirds of institutions do not offer the ability to open a commercial account online (68%) or in a call center (67%). That number is even higher for a mobile app (78%) or an in-branch kiosk (90%).
“Many financial institutions self-identify as commercially focused, yet they are not investing in commercial banking experiences,” said Harley. “This is especially problematic when you consider that business owners are also consumers and expect the same digital convenience across banking channels.”
Branch sentiment toward digital channels
Shockingly, one-fourth of banks and credit unions (25%) claim branch staff who are responsible for onboarding new customers feel threatened by online account opening channels. Currently, one in four financial institutions (22%) have no way to attribute new accounts opened digitally to a specific branch or relationship manager and 37% of banks and credit unions believe that account attribution would change how their branch staff feels about online account opening.
“This disconnect signals to larger issues we are seeing industry-wide in regard to banking technology adoption and change management,” said Harley. “The benefits of modernizing must be communicated across all levels of a financial institution and bank leadership should invigorate adoption. Investing in technology that elevates the employee experience, empowering branch staff to become more data-driven and better serve their customers, will help fuel adoption.”
To view the full report, please click here. For more information on MANTL or to schedule a demo, please visit: https://www.mantl.com/request-a-demo/
About The Omnichannel Account Origination Report
The Omnichannel Account Origination Report, commissioned by MANTL in partnership with The Financial Brand, surveyed U.S. banks and credit unions to identify omnichannel banking priorities and explore existing consumer and commercial account opening capabilities by channel.
The survey was conducted by The Financial Brand among 182 U.S. bank and credit union employees between March 9 and March 28, 2022, using an email invitation and an online survey. For more information on the report, please click here.
MANTL is a financial technology firm offering omnichannel account origination software for banks and credit unions. Consumer Deposit Origination by MANTL is among the fastest and most performant solutions on the market, empowering net-new prospects to open accounts in under three minutes, enabling existing account holders to open additional accounts with just one click, and reducing fraud by as much as 67%. Commercial Deposit Origination by MANTL is a first-of-its-kind solution that reimagines account opening for businesses of all sizes by automating up to 97% of application decisions. MANTL’s customers have raised billions in core deposits to date. Founded in 2016, MANTL is a privately held company headquartered in New York with the backing of prominent venture capital investors. For more information, visit mantl.com.
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