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

With its new digital identity verification feature, prospects don’t need to visit a branch to open a new account. Adoption of a similar offering by CIBC’s peers could further entrench incumbents against new entrants.

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.

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.

Digital banks are driving customers to their ranks, from awareness to account opening, with digitally native marketing strategies and value propositions. Streamlined account-opening flows are helping them close the deal. The ranks of digital-only bank account holders will swell to 53.7 million in 2025, up from 29.8 million this year, per Insider Intelligence forecasts.

The timing of the fundraise is opportune: Digital account opening has surged on the back of the coronavirus pandemic. 2021 will be a high watermark year for accounts opened via digital channels, per Insider Intelligence forecasts, placing a premium on strong onboarding identity verification.

In-app account opening attracts solid demand among survey respondents—19.3% call it “extremely valuable"—and all seven FIs offer this basic functionality. Digital account openings in Canada will bounce back this year from a 2020 lull, per an Insider Intelligence forecast. The ability to customize the features and tools shown in the app offers customers a more flexible experience and boosts engagement.

On today's episode, we discuss the current state of the so-called "metaverse," what the future of mixed reality could look like, and how marketers are getting involved. We then talk about what the new James Bond film’s opening weekend tells us about the state of the movie theater industry and what kinds of alternative content theaters might feature to stay relevant. Tune in to the discussion with eMarketer Briefing director at Insider Intelligence Jeremy Goldman.

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