We are currently working on vetting several vendors for Online Account Opening, a first for us. Currently when we open accounts in branch, we require a copy of a current, non expired photo ID (passport, drivers license ect.) With our Online Account opening we were told by our preferred vendor that we can capture a copy of the photo ID. Now that we have asked for pricing they are telling us that it is a $25,000 upfront fee to implement. That is because it requires its own separate server (The vendor houses the servers for the service) and that's what they say it will cost.

My question(s) is are there any other FI's that offer online account opening? Do you capture an image of the front of an ID during the application process?

Our thought process behind capturing the image would be for a signature specimen for checks. I realize we will use esign disclosures for signing of signature cards and such for the online opening. I'm really looking to find out if other FI's capture an image.

As an aside, I'm not part of the compliance team here at the bank, My familiarity with esign and such is minimal. I'm in the technology/e-banking side here at the bank. Thanks for your help.

Most banks limit on-line account opening to existing customers only. How are you ever going to vet people from all over the nation for CIP/BSA purposes and identity theft when they are trying to open accounts at your bank? Even if you geographically limit the ability to apply for new customers, all the banks that I know require the person to appear at a branch location prior to actually opening the account for such vetting purposes.

We had this same discussion prior to implementation. We opted not to capture the ID picture, and only request that the applicant uploads a picture of their signature. We went with out of wallet questions tied to the credit report as an additional authentication method (one which even legit persons can fail) but so far haven't had any problems.

I have discussed this at length with many institutions, and it sounds as though we're all working in a similar pattern. One of those I spoke with started off requiring photo IDs, and then removed it due to the IDs they received weren't limiting fraud - and instead started reviewing IP addresses for more information.

We limit the zip codes that can apply for our online accounts, and if there are any fraud alerts we request they come in to a branch to finish their application.

Feel free to PM me if you want more details.

We too plan to limit geographically to our region. We are a smaller community bank serving a few counties in the Midwest. We also will use out of wallet questions, which we know aren't fool proof. In a true identity theft situation, there's a good possibility that the fraudster will be able to successfully answer those questions. In addition like you said GilaMonster, a legitimate person could fail the OOWQ.

rlcarey, I understand your point, but I can't image we will have customer satisfaction if we require them to come in person to validate their account/themselves. My wife and I have opened deposit, credit card, and college savings plans all online, never once set foot inside a building to finalize it.

I personally think it's a risk that the FI's need to address, risk assess, and determine if it is something they need to move forward with.

Limit to existing customers

Not true around here, most banks here offer the service to attract new customers. What's the point of absorbing the cost if we aren't going to generate new business to the Bank and only appease existing customers who may or may not bring new $$ to the Bank IMO. We do allow non-customers to open new accounts and we do not require them to come in, in person (defeats OL account opening). We have a stringent authentication process in the background and require they pass all levels (non-documentary identification). If an account passes all levels and is actually approved we have a couple more steps we do to verify (contact phone # to welcome them, send a thank you letter to the stated address). If it doesn't pass then it requires bank intervention and we would normally instruct the customer to come into the Bank for follow-up. Been offering it for several years and we have not had any issues whatsoever.