Mobile Marketing Finance Summit | The Remote Account Opening Benchmark Report: How to get More Customers Across the Finishing Line and Increase Account Opening Completion

© 2015 Jumio, Inc. – Confidential

Digital Account Opening: How to get More Customers Across the Finishing Line and Increase Account Opening Completion

David Pope, Marketing Director, Jumio


Today..

• Who is Jumio? • Remote Account Opening

– UK Volumes & Segments – Benchmarking: How long is it taking?– Benchmarking: How many applications are completed?– What are the barriers & friction leading to abandonment?

• How Jumio helps deliver a great digital experience & reduce account opening abandonment


Who is Jumio?

Jumio is a global identity management & credentials company using computer vision technology to reduce customer sign-up &

friction & verify ID credentials

Used by leading brands across a range of industries


The Retail Banker Jumio research report

INDU

STRY

REP

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IS CUSTOMER VERIFICATION THE ACHILLES HEEL IN ONLINE ACCOUNT OPENING?A Retail Banker industry report

Sponsored by

• Interviews with eight leading UK high street banks• Objectives

• To understand the process, success & friction in remote account opening

• To share insight how to improve digital account opening


Digital account opening: Volumes & segments

• Huge disparity in digital origination volume

• Average 121,724 applications per year

• Relatively new channel for acquiring brand new customers…2011 onwards

“Online account opening attempts” defined as commencing to enter personal data into the website/app


Digital account opening: Volumes & segments

BANK2

Bank 2 saw that 24% of its online account openings came from older better-off households, followed by younger households & constrained singles

Bank 5’s view is that digital was not an attractive channel for habitual branch users

Bank 4 saw that digital was a good channel to acquire customers outside of their branch network

Bank 5 believed that going to a branch is increasingly becoming a less attractive option for new customers. The bank said: historically for face-to-face interaction.”BANK

5

Bank 4 said: branch network. For example, we have 5 branches in London, 4 in the midlands and 1 in Manchester. So let’s say someone from Brighton or Southampton or Liverpool or Edinburgh where they don’t have a branch network. They are the ones who come to visit us online.”

BANK4

“We find that customers who use branches had that preference historically for face-to-face interaction.”

“What we find is that customers who are coming to us are outside our branch network. They are the ones who come to visit us online.”


Digital account opening: How long is it taking?

• Huge range in how quick it is to open accounts online, from 10 minutes to half an hour

• Average time 16.25 minutes

• Compared to in-branch application time of 20-40 mins


Digital account opening: Application completion rate?

• 1 in 2 online applications are not getting across the finishing line

• Average success rate 51.25%

• Banks with higher volumes have the lowest completion ratio

• Bank 3, the most effective at online account opening. Has less than a fifth of volume compared to Bank 1 but double the success rate


Digital account opening: Barriers & Friction

• All banks interviewed stated that they were struggling with online account opening completion rates

• Respondents’ insight can be grouped into four categories that are driving poor account opening completion rates


Barriers & Friction

“There is an issue that the amount of info that you provide means that it doesn’t all get taken in”

• Terms and conditions often extend to more than 30,000 words*

• 73% of consumers don’t read Terms and Conditions

• Getting the balance right between customer convenience and regulatory and legal requirements is key to a quick, easy customer experience

*Source: Fairer Finance (2014)

Bank 1 said that even if potential customers have the informatidue to the time needed for the process: on the first page. That’s literally your personal details, name, and address and so on. There’s nothing there that would cause people to drop out because they BANK

1

“If we had to provide half a dozen absolutely critical one line bullet points, I’d have the confidence in the vast majority of customers taking the time to read and absorb that and really understand it.”

Bank 1 said that even if potential customers have the informatidue to the time needed for the process: on the first page. That’s literally your personal details, name, and address and so on. There’s nothing there that would cause people to drop out because they BANK

1


Barriers & Friction

• All of the interviewed banks reported that established online KYC processes were only able to generate successful verification rates of c. 70%

• As a result, nearly a third of online account applications could not be automatically completed.

“We are dependent on some manual intervention, we are reliant on some customers having to upload their documents or bring them in branch. Some people go through with this if they are close to a branch network”


5


• Bank 7 recognises the attrition in their account opening completion rate and are actively attempting to introduce technology and process to mitigate said attrition

• Echoed by many of the respondents who said that only 30% of applicants asked to bring documents in-branch ever do so

BANK7

account opening process involves has been shown to increase success rates. On this point, Bank 7 said

whether that is time or documents needed, makes the process eas

In addition, many of the banks said that making the process appealing, through improved design and layout is

“Reducing the occasions where online customers are requested to visit branch is something we continue to explore.”

Barriers & Friction

• The manual process to be able to accept these customers commonly means asking the customer to go-in branch to hand in ID documentation


Barriers & Friction

How to improve UI & design…

Become a UX ninja

• The Keystroke Level Model• The Gestalt Laws of Grouping

Don’t lay traps for your customer to fall into

• Don’t make me think!


How to improve UI & design…

Be an autocue for your customers

• Be intuitive and make life simple.

Barriers & Friction


Barriers & Friction

“We rely on the one bureau we associate with and customers having to upload their documents or bring them into a branch. There is technology that could be used to make it simpler and easier for customers.”


5

“We are regularly looking for ways to improve the user experience for customers, which is why we are updating our online application form to make it more straight-forward for customers to complete.” BANK

6 Bank 6 returned to the theme of user-interface as a way to improve the account opening process and

reported that: which is why we are updating our online application form to makcustomers to complete.”

However only two of the 8 banks that we interviewed cited user experience & design as a way to tackle account opening abandonment:


Regulatory Know Your Customer requirements universally found to be less straightforward & more complex for online vs traditional in-branch:

Barriers & Friction

BANK2

Bank 4 said: branch network. For example, we have 5 branches in London, 4 in the midlands and 1 in Manchester. So let’s say someone from Brighton or Southampton or Liverpool or Edinburgh where they don’t have a branch network. They are the ones who come to visit us online.”

BANK4

“We require the customer to provide three things: proof of identity, proof of address and proof that they are who they say there are. This is far more difficult to do online. It’s more complex than in a branch.”

At the same time all the respondents acknowledged the necessity and importance of KYC regulations:

“I don’t think we are doing it just because regulations ask us to. We sincerely believe that we need to know where the customers are coming from and I don’t think it’s too onerous.”


How Jumio helps reduce account opening abandonment


How to reduce online account opening drop-off

Customer is asked to scan

their ID document

Data is instantly extracted & populated

ID is authenticated against security

features

Customer facial image is compared with face in ID document

Account opening can proceed

without KYC delays


Authenticates ID Documents From

Over 130 Countries

Unique combination of technology & document expert review

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SECURITY FEATURES CHECKED INCLUDELayout & positioning check

Font comparison

Microprint analysis

Hologram check

MRZ code checks

Known forgery review


Facial comparison analysis

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Compares face in ID document with “in-transaction” facial imageProvides an extra layer of securityPrevents ID thieves opening new account with stolen ID’s


Examples of fraudulent IDs we have detected

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Example 1:British passport:Name in ID does not match MRZ

Example 2:Portuguese ID Card:

Stuck on ID document number

Example 3:Nigerian Driving License:Manipulated date of birth


Examples of fraudulent IDs we have detected

Example 5:Lithuanian Driving License.

Image Manipulation

Example 4:Estonian ID Card

Signature blanked out

Example 6:Latvian Passport

MRZ code mismatch


What if other supporting documents are required?

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Netverify enables clients to collect other supporting documents such as utility bills or banks statements as a JPG/PNG/PDF upload. Jumio does not verify these files, but by

collecting them in one simple process, the customer experience is optimised.


Create a great user experience that transformslaborious & error-prone key entry…

Convenient for your customers at point of application

Make application form filling quicker & easier, saving over a minute of key entryIncrease completion rates by over 10%Improve customer data quality by collecting it from source credentials

…into a near instant automated process


Translate & update verification processes Taking ID documents in-branch or via snail mail

Convenient for your customers at point of ID verification

vs

30% of customers fail traditional verification database checks 70% of customers abandon when asked to submit copies or originals of their IDMake the customer verification process 5X to 6X faster

Real-time KYC that maintains application momentum


Supporting leading online financial services brands

We can now complete customer verification five times quicker with Jumio compared to our old manual processes

Jumio’s ID document authentication supports speedy account opening

for our customers

With Jumio our account verification process is now 80% quicker


130+ countriesFastfill works with IDs from across the globe (passports, driver licenses or government IDs)

Jumio’s patented technology offers data extraction from:MRZ, 2D Bar Code, OCR


Safe & Secure

We apply stringent PCI protocols to PII data

All data transmitted with

256k bit encryption

Full redundancy on Amazon EC2 & Rackspace

Meets local jurisdiction

data requirements

24/7 network monitoring & Help Desk

Security management

Policies & procedures

Network architecture

Software design

accreditation

Ongoing certification monitoring


Flexible & Scalable Platform

Platform Specs

OS PLATFORMS DEVICES INTEGRATION TIME PRICING MODEL

Minimal developer time. Go live in

weeks.

Flexible SaaS model

Annual or multi year terms.

Limited or unlimited scans per month plans available.


Reduce online account opening drop-off

Reduce 70% drop-off in Remote Account Opening &

meet KYC compliance

Reduce volumes of in-branch counter Transactions

Deliver a great digital customer experience

The result?


Thank You!

David Pope

[email protected]

+44 (0)7740 564 089

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