The Bankwatch

Tracking the consumer evolution of financial services

Online account opening is difficult to automate

This is a great post from Doug at FORUM. The reality is that it is really hard to automate account opening. I have been there, and the first steps involving a web front end, and manual back end, will in fact drive cost.

Online Account Opening – Is it possible to make your Web site work harder? B – Boeing Employees Credit Union and Fairfax County Credit Union shared their experiences in this area. I was impressed with their honesty in what was and wasn’t working. It was a bit of a commercial for UMonitor and Andera – both solid companies in this space. Both credit unions are enrolling new members on their web sites. Both credit unions still have manual processes behind the scenes. Definitely getting closer and the technology is maturing.

Source: True Thoughts

Banks and Credit Unions have systems that were designed to be accessed directly from a branch and input by a Bank expert (employee). Those systems are also likely based on branch based accounting, which is quite different from a customer coming in through a single web site for the entire firm.

It is worth the effort though. Customers want this, and obviously its the future of account opening. Its ok to start small with this approach, provided you work at integration and complete automation over time. Good luck to Boeing Employees Credit Union and Fairfax County Credit Union and all the others who are trying.

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Written by Colin Henderson

June 23, 2007 at 19:53

Posted in Online Banking

3 Responses

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  1. Can you link to Doug’s post, I wasn’t able to find it. Thanks!


    June 24, 2007 at 14:04

  2. Otto … Oops … my mistake … new blog client that I am still getting used to.


    June 24, 2007 at 14:09

  3. Thanks for raising this issue on your blog. Core integration is always a challenge, particularly with new account opening, given the broad and diverse functional aspects involved.

    Fortunately, Andera has been heavily focused on core integration since our first online account opening customer went live back in early 2002. Today we offer pre-built integration to a variety of leading cores, including Summit, USERS, AFTECH, VISION, Symitar, and ULTRADATA, with new releases for CUBE and ITI expected a little later this year. Together, these cores represent thousands of financial institutions for whom seamless, account opening integration is currently available, proven, and given Andera’s unique Software as a Service (SaaS) delivery model, quite cost-effective.

    In fact, of Andera’s market-leading 125+ bank and credit union customer implementations, 66% include seamless real-time integration with the core system, while an additional 11% include seamless batch (overnight) integration with the core system. Unfortunately, the example cited of Fairfax Credit Union happens to be one of the remaining 23% of our customers for whom no core integration has been implemented.

    Charlie Kroll
    Andera, Inc.
    Charlie’s Blog

    Charlie Kroll

    June 25, 2007 at 10:28

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