How MidWestOne are crushing Digital Account Opening
By: Derek Corcoran, VP, Financial Services at RCG Global Services
In the fast-paced world of banking, size isn’t always everything. MidWestOne, a community bank, is proving that innovation and strategic use of technology can level the playing field against industry giants like Capital One, Chase, and Wells Fargo. At the Temenos Americas Fall Forum in Miami, Heather DeStefano shared insights into how MidWestOne has revolutionized digital account opening—setting an example for banks large and small.
The Opportunity in a Smaller Bank
Heather DeStefano’s diverse background in retail, healthcare, and banking provided her with a unique perspective on the digital landscape. When she joined MidWestOne, she saw an opportunity to apply her experience to transform the bank from the ground up, focusing on delivering superior customer experiences.
MidWestOne already had digital capabilities in place, such as account opening with Fiserv. However, the digital channel was underperforming and needed a refresh to attract tech-savvy customers. Heather was hired to lead this digital transformation initiative.
Overcoming the Challenges of a Legacy System
One of Heather’s first tasks was to replace MidWestOne’s outdated digital account opening system. The goal was to implement a modern solution that would attract and retain customers. The project involved upgrading to Temenos Journey Manager, a move that wasn't without its challenges, including resourcing, budgeting, and timeline constraints.
1. From Legacy to Leading Edge
The transformation was significant. MidWestOne moved from a cumbersome legacy system, which required staff to manually review all applications, to a streamlined, mobile-first experience that takes less than two minutes to open an account. Today, the bank enjoys a 63% completion rate, with less than 10% of applications needing manual intervention.
2. Leveraging Mobile Technology
The new system recognizes the smartphone as the core of modern consumer identity. By partnering with iOvation and Prove, MidWestOne has capitalized on changing consumer behavior to deliver an exceptional digital experience.
Benefits of the New System
The results of MidWestOne’s transformation have been nothing short of remarkable. Digital account opening volumes have doubled, and fraud attempts have decreased significantly. This success is credited to the advanced technologies that enable the bank to prefill most customer information, enhancing both efficiency and security.
Valuable Lessons for Other Banks
Throughout MidWestOne’s transformation, Heather and her team learned several valuable lessons that can help other financial institutions succeed.
1. Engaging with Partners, Not Vendors
Heather emphasized the importance of finding partners invested in the bank’s success rather than vendors pushing pre-built solutions. MidWestOne sought a flexible solution and a partner that could deliver a differentiated customer experience, akin to what consumers expect from Amazon.
2. Recognizing Organizational Impact
Digital account opening isn’t just a technology project—it impacts the entire bank. Heather advised considering all stakeholders, from branch staff to compliance teams, early in the project to ensure their needs are addressed and to facilitate smoother implementation.
3. Encouraging Ownership Through Discovery
Heather stressed the importance of engaging the business in project discovery to foster ownership. At MidWestOne, stakeholders spent two days in workshops to discuss the bank’s needs, client engagement strategies, and existing systems. This collaborative approach ensured collective ownership of the project’s success.
The Power of Collaboration
MidWestOne’s success story is a testament to the power of collaboration. By partnering with RCG and Temenos, the bank was able to leverage cutting-edge technology and expertise to drive its digital transformation. Heather’s willingness to share her experiences at the Temenos Americas Fall Forum further highlights the importance of knowledge sharing in the industry.
Conclusion
MidWestOne’s digital transformation demonstrates that with the right strategy and partnerships, even community banks can compete with industry giants. By focusing on customer-centric solutions and leveraging mobile technology, MidWestOne has set a new standard for digital account opening.
For other banks looking to emulate MidWestOne’s success, the key takeaway is to engage stakeholders early, choose partners wisely, and foster a culture of collaboration. These steps will not only enhance the customer experience but also position the bank for future growth in the digital age.
Want to learn more about the project? Watch our webinar with Heather DeStefano from MidwestOne.