Does anyone automatically enroll their customers in online banking and/or electronic statements and provide the customer with an opt out? If yes, what are your processes and what is the feedback from auditors and customers? if not, what is your reasoning?

We are looking into auto enrolling for an electronic statement campaign and trying to weigh the pros and cons.

You can't discontinue paper statements with this process since E-SIGN requires that your customer request electronic statements and the bank obtains their demonstrable consent to verify that they can receive the documents.

Unless you plan to continue paper communications and treat the e-statements as courtesy copies, it's illegal.

I have another question, am I right when I say that when a customer signs up for online banking, that while they are at the bank, the banker cannot help them log in on the bank's computer because the customer has to demonstrate on their own computer that they meet system requirements? Also, it is discouraged to provide a kiosk to do this because per the E-Sign Act, they are not showing that they meet system requirements on their own computer?

Enrolling in on-line banking and being E-Sign compliant are two totally separate requirements.

These issues become intertwined because "enrolling in online banking" probably triggers Reg. E disclosures. All Reg. E disclosures must be delivered to the consumer "in writing" and that's where ESIGN enters the picture. The only way that electronic documents (containing federal disclosures of any kind) can be the legal equivalent of paper is when the consumer has consented in the ESIGN-prescribed manner.

Thanks for your help on this.