Frustration to Frictionless: How to Drive a 23.5% Boost in Online Banking Registrations

Valley Bank

Valley Bank, a regional bank serving retail and business customers across New York, New Jersey, and Florida, sought to modernize its 98-year-old operations. Leadership aimed to streamline legacy systems and manual processes, transforming the bank into a customer-centric, digital-first organization. As a researcher, my role was to identify barriers to digital adoption and uncover opportunities to enhance the customer experience.

The Challenge: High Online Banking Registration Dropoff Rates & Customer Frustration

Valley Bank faced significant challenges with its Online Banking (OLB) registration process, which was causing high dropoff rates, customer frustration, and inefficient manual processes. Key issues included:

  1. High Dropoff Rates:

    • 56% of customers abandoned the application process on the first page

    • Of customers who proceeded past the first page, only 5% of checking account applications were completed

    • Less than 1% of Valleydirect (online savings account) applications were completed.

    • 94.5% of OLB applications required manual intervention by Valley associates, adding friction and inefficiency to the process.

  2. Customer Frustration:

    • Password reset issues were a major pain point, with customers locked out after three failed attempts. This was particularly frustrating for younger, tech-savvy customers who expected seamless, 24/7 access.

    • 40% of users struggled with OLB username creation, often forgetting that their “username” was their email address.

    • 30% of users expressed confusion about the confirmation page, unsure whether their application was approved or still under review.

  3. Customer Care Overload:

    • 40% of customer care calls were related to OLB issues, such as password resets, account lockouts, and general support. This placed a heavy burden on customer service teams.

  4. Low Engagement:

    • Only 2 out of 5 customers who signed up for OLB became active users, indicating a significant "silent attrition" problem.

Efficacy of the Solution

The implementation of the Terafina onboarding platform had a significant positive impact on Valley Bank's OLB registration process:

  1. Increased OLB Registrations:

    • Conversion rates for retail OLB registrations increased from 34% to 42% in September-December 2020, driven by the streamlined Terafina onboarding process and in-branch marketing campaigns.

    • In-branch signups doubled, with customers completing the registration process more easily.

  2. Reduced Customer Care Burden:

    • The number of OLB-related customer care calls decreased by ~30%, freeing up resources for other support needs.

  3. Cost Savings:

    • 80% of branch transactions involving checks were moved to digital methods, saving the bank significant operational costs.

    • The reduction in manual interventions and customer care calls resulted in additional cost savings for the bank.

  4. Improved Customer Satisfaction:

    • NPS scores for retail customers increased from 26.8 to 34, while CSAT scores improved from 77.3 to 78.5.

    • Customers reported feeling more confident and satisfied with the streamlined process.

My Role: Uncovering the Root Causes and Driving Solutions

As the UX researcher on this project, I played a critical role in identifying the root causes of these challenges and providing actionable insights to improve the OLB registration process. My work involved:

  1. Conducting User Research:

    • Led user testing sessions with 118 participants across multiple customer segments, including Blossoming Burbs (tech-savvy, high-income), Established Earners (older, financially stable), and Safe & Secure (risk-averse, older).

    • Analyzed customer care diaries and call logs, identifying that 40-50% of calls were related to OLB issues, such as password resets and account lockouts.

  2. Analyzing Data:

    • Reviewed Google Analytics data, which revealed that 56% of customers dropped off on the first page of the application process.

    • Analyzed CX Pulse reports, showing that only 24.7% of eligible customers were active OLB users, with 6.1% actively using remote deposit services.

  3. Generating Insights:

    • Identified key friction points, including password reset issues, OLB username confusion, and unclear confirmation pages.

    • Highlighted the need for a simpler, guided user experience and clear communication about application requirements and next steps.

Key Insights Generated

Through my research, I uncovered several critical insights that informed the redesign of the OLB registration process:

  1. Simplification is Key:

    • Customers found the existing application process too complex, with 12+ pages to complete. Simplifying the process and reducing the number of steps was essential to reducing dropoff rates.

  2. Clear Communication:

    • Customers needed clear expectations about what was required to complete the application, including the necessary documents and information.

  3. Reducing Friction:

    • Password reset issues and OLB username confusion were major sources of frustration. Streamlining these processes was critical to improving the customer experience.

  4. Guided User Experience:

    • Customers appreciated guided UI elements, such as input field hints, progressive labeling, and tooltips, which helped them complete the application process more easily.

The Redesigned Solution: Terafina Onboarding Platform

Based on these insights, Valley Bank implemented the Terafina onboarding platform, which I helped design and validate through iterative user testing. Key features of the redesigned solution included:

  1. Simplified and Guided User Experience:

    • Reduced the number of steps in the application process, making it simpler and more intuitive.

    • Introduced an interstitial screen that set clear expectations about what customers needed to complete the application (e.g., personal details, identification, and bank details).

  2. Improved OLB Username and Password Flow:

    • Integrated OLB username creation into the application flow and provided clear instructions for password creation and reset.

    • Added temporary passwords sent via email, which customers could change upon their first login.

  3. Enhanced Funding Experience with Plaid:

    • Integrated Plaid for external funding, allowing customers to link their bank accounts seamlessly.

    • Added tooltips and content to explain how Plaid worked and why Valley used it, addressing concerns from users unfamiliar with the tool.

  4. Clearer Confirmation and Next Steps:

    • Improved the confirmation page by adding a reference number and setting clear expectations about next steps (e.g., email confirmation, temporary password, and account approval timeline).

Impact to the Business

The redesigned OLB registration process had a profound impact on Valley Bank's business, driven by my research and insights:

  1. Improved Customer Satisfaction:

    • The streamlined process and reduced friction led to higher customer satisfaction and increased engagement with online banking services.

  2. Operational Efficiency:

    • The reduction in manual interventions and customer care calls allowed Valley Bank to reallocate resources and improve overall operational efficiency.

  3. Cost Savings:

    • The move to digital methods for check deposits and other transactions resulted in significant cost savings for the bank.

  4. Increased Digital Adoption:

    • The improved OLB registration process drove higher adoption rates for online banking, positioning Valley Bank as a leader in digital transformation.

Conclusion

As the UX researcher on this project, I played a critical role in identifying the root causes of Valley Bank's OLB registration challenges and providing actionable insights to improve the process. My research and recommendations directly contributed to the successful implementation of the Terafina onboarding platform, which led to:

  • OLB Conversion Rate: A 23.5% increase in conversions demonstrates the effectiveness of the streamlined onboarding process.

  • Customer Care Calls: A ~29% reduction in OLB-related calls highlights the success of reducing friction in the registration process.

  • Branch Transactions: Moving ~78% of check deposits to digital methods saved the bank significant operational costs.

  • Retail NPS: A 7.2-point increase in NPS reflects improved customer loyalty and satisfaction.

  • Active OLB Users: A 5.3 percentage point increase in active users shows higher engagement with online banking services.

  • Mobile Deposit Volume: A 33% increase in mobile deposits underscores the success of reducing friction in the deposit process.

This case study demonstrates the power of user-centered research and data-driven decision-making in driving meaningful business outcomes. My ability to uncover key insights, collaborate with cross-functional teams, and validate solutions through iterative testing was instrumental in transforming Valley Bank's online banking experience.