The world is quickly moving towards digital working methods, which means customers want the features to be as seamless as possible. Banks need to learn how the account funding process can lead to an improved user experience. All the customers want great banking experiences online and banks need to understand the need for a smoother funding process. Banks who fail to deliver a superior customer experience will eventually lose to banks who can provide that kind of experience.
According to research, banks that can provide a better overall customer experience have shown significant growth of new applicants in the last few years. If customers are highly satisfied with digital banking services, they are more likely to consume additional banking services in comparison with customers who aren’t satisfied.
Account funding as a service plays a vital role in the bank account opening process for the users. An account funding process that’s not smooth can be frustrating for the customers to work with. If the process takes too long, then the customers will abandon their application process and move onto another bank with the simpler onboarding process. Smooth and easy-to-use account funding is a must-have service for any customer onboarding process.
During this article, we will be discussing the most common account funding options.
Account Funding Method 1: Manual Entry
Manual entry is the traditional and one of the most common methods of manually entering account and routing numbers before finishing with a micro-deposit. Manual entry comes with some issues even if the users have their numbers handy, still, the process is highly relatively labor-intensive and can be full of error for both users and banks. Using micro-deposits for account information can take a lot of time to validate the account information.
Manual entry also requires the applicant’s driver’s license number and state of issue. Also, a lot of banks overestimate the benefits of asking for a customer’s driver’s license. Other methods of account funding are equally secure and entirely compliant, and the plus point is that they require less time and fewer steps.
Account Funding Method 2: Debit or Credit Card
This method of account funding requires users to enter their card number, expiration date, CVV, and security code to fund an account. After the card is verified by the bank as active and able to complete a transaction, the account funding transaction is complete. The users have a choice between using debit and credit cards, if they use a credit card then they can earn great card rewards.
While this process of account funding is simpler than manual entry, it is still not without any errors. One major drawback for your institutions to initiate deposits that are made with a debit or a credit card is on the lower end. Only 47% of all the users will use a debit card.
Fraud is another big concern when it comes to debit and credit card account funding methods. For this reason, debit card and credit card methods of account funding are not as favorable as financial institutions would want them to be.
Funding via debit card comparatively is much more secure but it is still not a more ideal solution. To put it simply, any process that requires users to enter their card details will end causing some kind of problem.
Account Funding Method 3: Instant Account Verification
Instant account verification allows applicants to use their online banking credentials from an external bank to confirm the account details and verify the funding amount. IAV takes just a few seconds and offers account verification in real-time.
Customers who don’t have an exact idea of how much amount they have in their account, are more likely to deposit the minimum required amount. Typically, account applicants who are under 35 years old are most likely to use IAV. Using this method makes the banks more ideal to use in people’s minds. The applicant drop-off rate is the lowest for IAV, it is as low as 1 percent and data sharing consent is not a major bottleneck.
How DIRO Facilitates Account Verification?
DIRO’s award-winning document verification technology can skip past all the inefficient account verification technology and verify documents in an instant. Customers value their time and banks can use DIRO’s document verification technology to instantly verify bank account ownership, driver’s license, and any other original document.
DIRO captures original documents from any third-party original web source to verify documents. It can access check documents with automated user content and secure impersonation checks.
