Getting Started with Digital Account Opening for Businesses

Emma Schoth

Emma Schoth

February 24, 2023

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As small business lenders continue to work towards digital maturity, they’re laser focused on bringing more efficiency to new areas of the small business segment to meet the ever-changing expectations of borrowers. 

This year, many lenders are seeking ways to streamline their business deposit account opening process. Small business deposit accounts are a great source for low-cost capital for financial institutions, but getting businesses to open new accounts can be challenging.

A key area of focus for financial institutions is closing the customer experience gap that exists in business account opening by reimagining the process for both customers and internal staff.

In 2023, business owners are seeking the same efficiency in their business banking that they receive with their consumer products; however, legacy account opening for businesses is tedious and time consuming, typically requiring customers to visit a branch. 

According to a recent American Banker Report on small business customer expectations, 46 percent of respondents reported that digital tools are critical and 35 percent reported they are very important in their search for a primary banking institution. 

While financial institutions are eager to provide business customers with a process that eliminates the tedium of legacy account opening, there are challenges that concern some, especially those who are earlier in their digital transformation journeys

Online deposit account opening for business opens the door to more fraud risk than legacy account opening due to the elimination of in-person interactions. While many financial institutions might not be 100 percent prepared to jump into a full online account opening solution in 2023, they recognize that deposit accounts are a great avenue to build stronger small business relationships. 

With Numerated, financial institutions can enable their business customers to open a deposit account and apply for a loan in one, easy, streamlined application. Combining the two application experiences into one provides banks and credit unions a unique competitive advantage over their peers.  

Advantages on In-Line Deposit Account Opening

Building More Complete Business Relationships 
Many FIs require borrowers to open a deposit account with the institution when they are approved for a loan. In a recent survey of Numerated customers, 65 percent of respondents reported that they require new business loan customers to maintain a deposit account with their institution. Additionally, 77 percent reported capturing the entire relationship with business customers was highly important. 

It’s clear that furthering the business banking relationship is an important goal for financial institutions, but many have seen challenges in getting businesses to switch institutions. The complex and time-consuming nature of legacy account opening simply doesn’t fit into the busy day-to-day of an entrepreneur. 

With in-line deposit account opening, small business owners can easily apply for a loan and open a deposit account in less than 12 minutes through one application without the need for in-person branch visits. This process allows business owners the flexibility to access the application and complete it on their own time. 

The ability to monitor a business’s deposit account balance and transactions provides FIs an additional view into the health of the business and can help better prepare for potential default if the balance becomes too low to complete loan payments. Additionally, deposit accounts enable banks and credit unions to capture more of the business banking relationship with their customers. 

Reducing the Risk of Fraud 
Numerated’s digital account opening solution is built to mitigate the risk of fraudulent applications. The platform incorporates multiple fraud and identity verification tools including LexisNexis Instant ID and Experian Business IQ. Additionally, Numerated’s proprietary rules engine executes risk flags that automatically compare data in the application with information provided by third parties to identify potential risk. Financial institutions can enjoy peace of mind knowing they’re able to detect and prevent fraud with even more data check points. 

For institutions that aren’t ready to offer digital account opening as a standalone solution, combining the deposit account and loan application into one workflow enables them to get started by offering online account opening only to business customers they are willing to lend to. In combination with the loan application, financial institutions can now receive even more information about the business to enhance their KYC/KYB due diligence.

Be One of the First in Your Market to Offer In-Line Deposit Account Opening for Business

For lenders that aren’t quite ready to take the leap into a fully developed digital account opening solution, leveraging in-line deposit account opening can be a great start. Today, Numerated is the only vendor on the market that offers in-line loan application and deposit account opening. 

Be one of the first institutions to offer this streamlined process to business owners by contacting us to learn more.

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