Let’s be honest: People can buy a car, refinance a loan, and order groceries from their phone. Yet for many financial institutions, opening a bank account online still feels like a giant leap.
And it’s not because they don’t want to modernize. It’s because a handful of long‑held myths keep getting in the way.
So, let’s talk about five key myths – and why it’s time to leave them in 2014 where they belong.
1. If you go digital, fraud will explode. This one comes up all. the. time. The assumption is simple: more online activity means more fraud – period. But the thing no one tells you is it’s not digital that creates risk … it’s outdated digital. Modern identity tools aren’t just better than manual reviews. They’re faster, smarter, and way more accurate. Meanwhile, old-school security questions like “What was the color of your first bike?” just annoy people and cause applications to be abandoned. So no, digital account opening doesn’t unleash a wave of fraud. Staying stuck in manual, slow, clunky processes do.
2. Your systems could never integrate with something new. We’ve all heard the horror stories about legacy systems, custom code from 2009, and that one internal workflow nobody touches because “it just works, don’t ask questions.” But here’s the reality: Modern digital account opening platforms are built to play nicely with legacy systems. They’re flexible, modular, and designed for the exact environment most community and regional financial institutions are working with today. In other words, you don’t need to bulldoze your tech stack to modernize. You just need the right tools connecting the dots.
3. What if no one actually uses it? This one makes me smile – because the opposite is happening. Consumers expect everything to be digital now. The idea of driving to a branch, finding parking, waiting in line, and signing a stack of papers … nobody is looking to add these things to their to‑do list. Digital account opening doesn’t just meet existing demand – it taps into new demand – reaching people outside of your branch footprint and attracting younger consumers who will never walk into a branch first. Build it well, and they will come.
4. The economy is too uncertain to invest in this right now. I totally get it. When rates change every week and budgets are tight, investing in new technology feels risky. But you know what’s actually very expensive? Manual reviews. A single 30‑minute review costs around $14. Multiply that by thousands of applications and suddenly waiting to invest is far more costly than the digital solution itself. And that’s before you even consider the people who start an application … wait … wait … wait … and then just open an account somewhere else because your process took too long. Delaying isn’t a money saver – it’s a money drainer.
5. Digital can’t replace the personal touch of our branches. Here’s the plot twist: digital isn’t supposed to replace your personal touch. It’s supposed to make it easier for people to get to it. When accountholders can open an account quickly and securely online, they enter your ecosystem faster, start building trust faster, ad access your staff faster. And, your staff can spend more time offering meaningful help – not processing paperwork. Digital doesn’t eliminate relationships – removes the friction that gets in their way.
Myths May Be Comfortable, But They’re Expensive
Sure, these myths feel familiar. They feel safe. But they’ve been recycled for years – and they’re keeping banks and credit unions stuck while consumer expectations sprint ahead.
When financial institutions finally take the leap, they almost always say the same thing: “I wish we’d done this sooner.” And it makes sense. The benefits aren’t vague or theoretical – they’re real, measurable, and impossible to ignore.
Digital account opening isn’t just a trend – it’s the new baseline.
The financial institutions embracing digital account opening aren’t losing their identity. They’re elevating it with stronger security, enhanced efficiency, and a dramatically better accountholder experience.
Ready to extend your branch beyond its four walls with a seamless, secure digital account opening journey that feels modern and human? Jack Henry® can help you get there.
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