No need to go to bank to open account says Absa

Opening bank accounts the traditional way - at a branch - is almost a thing of the past as a result of a cutting edge technology solution called remote opening capability, retail bank Absa says.

In a briefing on its consumer payments innovations on Monday, Arrie Rautenbach, head of retail markets at Absa, explained that the bank had developed an android-based smartphone and tablet device that enabled the opening of bank accounts and the issue of debit cards remotely to new customers in less than 10 minutes - and only one interaction with a client was required.

"The on-device application scans one's ID book to identify and verify the customer's details, captures all the relevant information and enables the imaging of supporting documents."

The existing proof of concept process had already reflected highly positively on the opening turnaround speeds as well as that of an actual increase in sales volumes on savings accounts during the trial period December 2010 to April 2011.

Rautenbach said that the system would enable Absa's sales consultants to open 50% more accounts than they presently did - "and after submitting applications, customers are notified in the space of two minutes that their accounts have been opened."

He explained that cost of servicing customers in the traditional branch based manner was prohibitively high.

This had a direct impact on Absa's cost to serve product pricing strategies and profit ratios.

There was therefore a need to evaluate alternative delivery strategies that would reduce the cost of delivery and enhance customer experience.

"This project forms part of the bank's key goals. In addition the remote opening capability forms a key aspect of ELIB's [Entry Level and Inclusive Banking outlet's] branchless banking strategy.

"The creation of an effective remote opening capability will allow the bank to actively service customers within the ELIB segment of the market by making account opening more accessible and cost effective."

Rautenbach said the remote opening platform created also had the potential to be used by other segments of the bank to service their customers more effectively.

Developing a mobile application of this nature was a fitting strategy as android was regarded as one of the most dominant mobile operating systems around and was used to power a number of different smartphone and tablet devices.

Rautenbach added that the application would show GPS co-ordinates of where images were taken which would allow the bank further compile customer and sales data.