How to Effectively Increase Account Openings and Usage?

Financial institutions often face the challenge of increasing account openings and their usage to drive business growth and profitability. Yet, in today's competitive landscape and evolving customer expectations, attracting and retaining customers can be daunting, especially when offering the best zero balance account opening experience online.

This article aims to delve into practical strategies that can be implemented to boost account openings and their usage effectively.

Simplify the Account Opening Process

The account opening process is the first step in acquiring new customers. However, many potential customers abandon the process due to lengthy and complicated procedures.

Financial institutions need to simplify the account opening process to increase account openings. This can be achieved by offering online account openings with minimal or no paperwork, mobile banking, and other digital channels. Additionally, offering incentives such as cashback or discounts on the first transaction can motivate customers to open an account.

Also Read: Opening a Bank Account Online for Free

Offer Customised Products and Services

Customers have different needs and preferences regarding banking and often look for the best zero balance accounts. Thus, offering customised products and services catering to their specific needs can increase account usage.

Provide Value-Added Services

Providing value-added services such as financial planning, investment advisory, and insurance can increase account usage. These services can help customers manage their finances better, improve their financial literacy, and build a long-term relationship with the bank.

Offering these services through digital channels such as mobile apps and online platforms can also make them more accessible and convenient for customers.

Focus on Customer Experience

The customer experience is a critical factor influencing account usage and retention. Thus, banks like Kotak Mahindra Bank Ltd's Kotak 811 focus on providing a seamless and personalised customer experience across all touchpoints. This includes offering 24/7 customer support, easy access to account information, and customised offers and recommendations based on their usage patterns. Banks can also leverage chatbots and Artificial Intelligence (AI) powered tools to enhance the customer experience.

Focus on Financial Literacy

Another effective way to increase account openings and usage is by focusing on financial literacy. Many people hesitate to open a bank account due to a lack of financial literacy.

Various banks can offer financial education programs, workshops, and online resources to help people better understand the benefits of banking, managing their finances, and building their credit scores. Financial institutions can attract more customers to open accounts and increase their usage by improving financial literacy.

Streamline Account Management

Managing multiple accounts can be a hassle for customers, leading to declining usage. Banks can streamline account management by offering consolidated account statements, online bill payments, and other features that simplify the account management process.

Additionally, banks can provide account aggregation services that allow customers to view and manage all their accounts in one place.

Utilise Social Media

Social media is a powerful tool that banks can leverage to increase account openings and usage. Financial institutions can use social media to engage with customers, promote their products and services, and offer personalised recommendations.

Social media can also run targeted marketing campaigns and promotions, reach a wider audience, and increase brand awareness. By adopting these strategies, banks can effectively increase account openings and usage, build a loyal customer base, and drive business growth.

Leverage Data Analytics

Data analytics can provide valuable insights into customer behaviour, preferences, and usage patterns. Banks can leverage this data to develop targeted marketing campaigns, offer personalised products and services, and optimise customer experience. By analysing customer data, banks can also identify potential churn and take proactive measures to retain customers.

Offer Competitive Interest Rates

Interest rates are a crucial factor that can influence account openings and usage. Offering competitive interest rates can attract customers to open an account and increase account usage. Financial institutions can also offer tiered interest rates based on the account balance to incentivise customers to maintain a higher ratio.

Also Read: Access Banking Anytime, Anywhere By Opening Zero Balance Account

Promote Referral Programs

Referral programs can be an effective way to increase account openings and usage. Banks can offer incentives such as cashbacks or discounts to customers who refer their friends and family to open an account. This can also help build a strong word-of-mouth marketing strategy and increase brand awareness.

Conclusion

Increasing account openings and usage requires a combination of strategies that focus on customer needs and preferences, customer experience, and value-added services. Banks can develop targeted marketing campaigns by leveraging technology and data analytics, offer personalised products and services, and optimise their customer experience.

Additionally, simplifying the account opening process, offering competitive interest rates, and promoting referral programs can attract new customers and increase account usage. By adopting these strategies, financial institutions can effectively increase account openings and use, drive business growth, and provide the best online zero balance account opening experience.