In 2022, US consumers will collectively open 13.1 million new bank accounts via digital channels, per our estimates. We stack up the mobile account opening experiences of the 10 largest US banks (by domestic asset size) and the four largest US neobanks (by users) based on our analysis of 35 emerging features.

Digital account opening is on the rise after a pandemic slump.

Digital-only banks—and neobanks in particular—have emerged as potent threats to incumbents, and many disruptors that could further shake up the US banking market loom large. But incumbents can still secure digital account holders by adopting digital best practices championed by challengers.

Connecticut-based Patriot National Bancorp’s partnership with American Challenger Development, for example, seeks to speed up account openings to under a minute, offer video interactions with customers, and close mortgages in less than 20 days.

More digital account opening, even for complex products. We expect digital account opening to continue slowly increasing through 2025. This holds true beyond just checking and savings accounts: Bank of America reported that most of its mortgage loans originated in digital channels in 2021. Fewer branch-exclusive services.

This report explores what’s driving UK neobanks’ growth and how incumbents can defend their share of the digital bank account holder market.

After taking a sizable hit to their business in 2020 from the coronavirus pandemic, digital-only banking players will host 6.5 out of every 10 digital account openings this year—driven by pent-up demand and the gradual return to normalcy.

Today, account opening is surging back after a slump during the coronavirus pandemic, and digital account opening (DAO) activity in particular is poised to benefit. However, banks will face stiff competition from neobanks and big tech companies that are raising the bar for digital account opening and count millions of customers among their existing client bases.

New cardholders also get 35% off their first Kohl’s purchase within 14 days of account opening. Why it’s worth watching: As retail sales tick up, store cards are well-positioned to capture volume and build consumer loyalty. Retail sales have steadily increased each month—January sales jumped the most since March 2021.

The growth of investment robo-advisors—algorithm-based account services—spiked last year across the US, the UK, and Canada as investors, especially those belonging to younger populations, took advantage of investment opportunities during the pandemic. For instance, independent robo-advisors Wealthfront and Betterment both reported double-digit increases in account openings during the pandemic.

Simple customers met with turbulent switch to BBVA USA: The shuttered neobank’s users faced lockouts as their accounts migrated over the weekend to sister bank BBVA USA—giving competitors an opening to attract affected customers.