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#2250689 - 03/16/21 07:50 PM Online account opening?
J_G Offline
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Joined: Dec 2010
Posts: 204
We are considering starting online account opening. We are a low risk, small bank. What risks should I be aware of? What types of things have your banks put in place?

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#2250700 - 03/16/21 09:12 PM Re: Online account opening? J_G
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 3,959
New York City
The first question is how will non-documentary ID verification be completed? If you're using a vendor, how comfortable are you with their data sources? Besides CIP information, what CDD information will be requested? How will you handle accounts where the CIP or CDD information cannot be verified automatically? There are other questions to be answered but these are the ones I would focus on first.
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#2250716 - 03/16/21 10:39 PM Re: Online account opening? J_G
Justin Case Offline
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Justin Case
Joined: May 2002
Posts: 970
first lily pad on the right
Do you have restrictions as far as who can open the account? Only existing customers or new also? If new, are there restrictions for location - such as only in your state? Personal accounts only or businesses also?
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#2250731 - 03/17/21 01:51 PM Re: Online account opening? J_G
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 3,959
New York City
We would never let a business open an account online as our provider cannot verify their organizational documentation automatically. Initially we began with the states we operate in but once we thought the program could handle it, we expanded. There is a significant fraud risk with online account opening as well and that's something you should consider as well.
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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#2250884 - 03/19/21 02:50 PM Re: Online account opening? Justin Case
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 9,995
Toano, VA
Originally Posted by Justin Case
restrictions...who can open the account?...existing customers or new ....
This is an important distinction. Opening a relationship is a much higher risk than opening a new account within an existing relationship.
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#2251529 - 03/30/21 09:47 PM Re: Online account opening? J_G
JackieW Offline
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Joined: May 2019
Posts: 14
You might want to limit the types of accounts that can be opened online.

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