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.

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

Goldman’s new General Motors card could cement the issuer’s reputation for innovative digital features and serve as an industry blueprint.

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.

Reducing friction is critical as US digital account opening bounces back: The number of new bank, credit union, and brokerage accounts will jump 24.1% in 2021 following a pandemic-related 8.4% slump last year, per our forecast. Adding a debit card to a virtual wallet. Users can bypass steps such as taking a photo of the card or manually entering card details in apps like Apple Pay or Google Pay.

Google ramps up mobile AR efforts: This could be the push for Google Glass for the masses, opening up competition with Meta and Apple’s wider AR and VR.

Thanksgiving store closures return thanks to shifting consumer habits: Increasing online shopping and earlier deal-seeking, plus criticism over opening on Thanksgiving Day, could lead many retailers to forgo the trend for good—Target has already committed to doing so.