We had a small group of folks together for Andy's excellent "e-Disclosures, ESIGN, UETA & Regulatory Changes" last week. One comment was that the majority of banks are not opening accounts online for new customers. We've had some discussion on that - Can anyone give me some detail, a better feel for the percentage doing it or not doing it?

I can't provide percentages, will follow your replies as this is an area our loan dept. wants into. We currently don't open accounts over the internet because of CIP reasons. I just can't see how you can reasonably identify who is opening the account. With the FACTA red flags going into effect in Nov. it seems as though there is even more emphasis on CIP.

Celent estimated in June 2007 that 2% were doing it then. However, they felt it would go to 18% to 20% by 2010 or 2011. I see additional FI's adding it every month. This is true web banking, where the entire process, including nondocumentary verification is done via the web.

There's a subtle but important difference between opening a new relationship vs. a new account. New accounts for old customers are much lower risk than new accounts for strangers. One simple way to "hold the line" is to require some form of pre-existing deposit relationship--opened the traditional way (allowing you to exercise the usual anti-ML anti-fraud measures)--before granting full online service.

There's a subtle but important difference between opening a new relationship vs. a new account. New accounts for old customers are much lower risk than new accounts for strangers. One simple way to "hold the line" is to require some form of pre-existing deposit relationship--opened the traditional way (allowing you to exercise the usual anti-ML anti-fraud measures)--before granting full online service.