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#1827556 - 06/25/13 11:35 PM Online verification of CIP
Rangers Fan Offline
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Joined: Dec 2001
Posts: 345
We are in the process of getting ready to start doing the online account opening process/due diligence and are needing to contemplate vendors to help verify CIP. Our Exec Team is wanting to NOT ask for ID but see if we can go the online verification route. What are the pros/cons of this and what are smaller banks doing in comparisson to what the bigger/regional/national banks using? I know there are online verification companies who can vet the data our cusotmers will enter online and we can maintain this documentation, but are these companies we will have to contract on our own or will our OLB vendor recommend ones they work with when we get to that point and what are some due diligence points we need to keep in mind in this process?

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#1827558 - 06/25/13 11:45 PM Re: Online verification of CIP Rangers Fan
rlcarey Offline
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Joined: Jul 2001
Posts: 78,958
Galveston, TX
what are smaller banks doing

Most are providing applications on-line for new customers that they have to take into a branch location. It is more common to see them open additional accounts on-line for existing customers. Unless you are willing to spend some pretty good cash to get it all set up, it is really not that cost effective for a smaller bank. You are talking thousands of dollar to set up and maintain and the chances of you actually gathering enough deposits to pay for it is pretty slim. Also, if you don't have regional geographical limitations built into the system, people from all over the world will try and open accounts.
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