Community banks are uniquely positioned to offer personal, relationship-driven banking experiences. However, they often face stiff competition from larger institutions and fintech companies that have invested heavily in digital capabilities. One critical area where community banks can gain a competitive edge is in the account opening process—specifically, automating and streamlining their bank-directed account opening approach.
Today’s landscape presents real challenges: bank-directed account opening is often limited to an entrenched, in-branch experience where the customer initiates the need to open an account. This is typically followed by a manual, paper-based process requiring multiple customer touchpoints. Compounding the issue, banks often lack the data and metrics needed to view the full scope of a customer's relationship with the institution—making it difficult to cross-sell additional products and deepen relationships.
Modernizing this process doesn’t just streamline operations; it strengthens the personal, local touch community banks are known for, while improving compliance, operational efficiency, and scalability. In a world where digital expectations are rising—and where some banks operate with few or no traditional branches—this transformation is no longer optional, but essential.
Let's explore how bank-directed account opening can be a strategic advantage for community banks.
Bank-directed account opening is where the bank, rather than the customer, drives the account opening journey. Customers still provide necessary information and documentation, but the bank facilitates, manages, and guides the process. This can be done by the banker at the branch or even in a café with the customer, creating a more flexible and personalized experience. This approach typically involves:
In contrast to self-service account opening, where the customer initiates and manages much of the process, bank-directed account opening combines high-touch service with modern efficiency which is particularly valuable for complex accounts.
Community banks pride themselves on personal relationships and individualized service. Bank-directed account opening allows bank staff to maintain that personal connection by guiding customers through the process, offering advice, and ensuring their specific needs are met.
At the same time, digital tools streamline the process, reducing the administrative burden on both customers and staff. The result? Faster onboarding without sacrificing the personalized experience customers value.
Many community banks today are expanding into new markets without physical branches. For these branchless institutions, bank-directed account opening is critical to replicating the white-glove experience traditionally provided in person. By leveraging relationship managers and digital tools, community banks can handle complex account setups seamlessly without the need for an in-person customer visit.
This approach allows banks to maintain high levels of service, foster trust, and provide guidance—even in a fully remote environment. Customers get a seamless, concierge-like experience no matter where they are located.
For community banks focused on serving small and medium-sized businesses (SMBs) or more complex commercial accounts (including businesses with complex ownership structures), a bank-directed approach is essential. These accounts often require more detailed documentation, enhanced due diligence, and tailored account structures.
Bank-directed account opening makes it easier for banks to manage these complexities efficiently, reducing errors and ensuring compliance with regulations. It positions community banks as credible partners for businesses needing more than just basic checking services.
With increasing regulatory scrutiny, ensuring compliance is non-negotiable. Bank-directed account opening processes typically include:
This comprehensive approach reduces the risk of human error and helps community banks stay compliant without bogging down staff in time-consuming manual processes.
Manual account opening processes often lead to duplicated data entry, missing information, and delays. Bank-directed account opening leverages digital platforms that:
This reduces redundancies and frees up staff time to focus on higher-value activities, like building customer relationships and identifying cross-sell opportunities.
One of the most significant advantages of bank-directed account opening is the opportunity it creates for effective cross-selling. Here’s how:
For community banks—especially those without a branch network—this proactive, relationship-driven cross-sell approach is key to growing deposits and deepening customer relationships.
Bank-directed account opening isn’t just about improving internal processes; it’s about delivering a better experience for customers and reinforcing what makes community banks special. By adopting a digital-first, bank-driven approach, community banks can streamline onboarding, strengthen compliance, and build deeper local relationships with both individuals and businesses. This is how community banks can thrive—by staying true to their values while embracing innovation.
Vikar’s platform offers community banks a comprehensive, digital-first solution designed for bank-directed onboarding. Key features include:
By combining these capabilities, Vikar helps community banks provide a modern, compliant, and efficient account opening experience—without losing the human touch that sets them apart.
Vikar distinguishes itself in the market by offering the only comprehensive, omni-channel account opening solution that includes bank-directed account opening. Vikar seamlessly integrates both digital and branch-directed processes. This unified approach ensures a consistent and efficient experience across all customer touchpoints, whether online, on mobile devices, or in person at the branch.
Unlike other providers, Vikar delivers straight-through digital processing for account opening, lending, KYC, and financial reviews across retail, commercial, treasury, and wealth management business lines. This integration eliminates operational silos, enabling financial institutions to cross-sell effectively and provide a more personalized customer experience.
A key differentiator is Vikar's seamless integration with core banking systems, allowing for real-time data synchronization and reducing the need for manual data entry. This enhances operational efficiency and minimizes errors, providing a smoother experience for both customers and bank employees.
Vikar's solutions are highly configurable and scalable, accommodating the unique needs of community banks. Its open API architecture facilitates easy integration with existing applications and third-party services, ensuring a flexible and future-proof investment.
By focusing on enhancing customer relationships through streamlined processes, Vikar not only improves efficiency but also fosters deeper engagement between bank staff and clients. This approach leads to a more positive and personalized banking experience, setting Vikar apart in the competitive landscape.
Amruta Dongre has over 15 years of experience in product and software development. In her current position as CTO and Founder of Vikar Technologies, she leads the overall product strategy and oversees product development and engineering. Amruta designs and develops solutions in line with the overall vision for Vikar resulting in innovative solutions and technology to Vikar clients. This approach has enabled Vikar to deliver solutions in weeks not months aligned with current market needs. In her previous roles, Amruta has led the design, implementation, and delivery to over 15 major financial institutions in digitizing and improving their client lifecycle management processes. Amruta holds a Master’s Degree in Information Management from Syracuse University.