Recently, my college-aged son signed up for his first credit card. He chose Capital One not because of their long history as a card issuer or their flashy TV ads, or even their state-of-the-art website. No, he went with Cap One for the same reason as that of tens of millions before him: a simple, preapproved direct-mail offer at just the right time.

It's enlightening to see the process through the eyes of a credit newcomer. Even though he understands credit cards intellectually and has used debit/prepaid cards for years, a number of things were still less than obvious to him as he went about activating the card over the phone, using it for the first time, signing up for online banking, and paying his first monthly bill. For example:

• The initial card-activation process was a mystery to him. He did not expect to have to call the bank when the card arrived. And the conversation he had with the CSR was confusing. I heard only his side of the call, but evidently Capital One pitched both credit insurance and ID protection services. He successfully said no to ID protection, but to his surprise, the first bill had a 1% fee tacked on for credit insurance, which he absolutely does not want (it's only a $300 credit line).
• He's very concerned he'll miss the payment due date, which seems so far into the future, given the lag in posting, combined with the grace period. The payment on his first charge was more than six weeks later. To him, it almost seemed to too good to be true, and also made it harder to remember.
• He doesn't have experience writing checks nor does he even have stamps around the dorm room; so even the simple act of paying the bill each month is not as easy as it seems. I helped him set up his checking account for ACH payments (see #7 and #7a below), but I'm not sure that would have been obvious to him had I not been looking over his shoulder.
• I also helped him set up mobile and email alerts to remind him to pay, but again, without his father pitching in, I'm not sure he would have known to do that. He hasn't set up alerts on his checking account because he didn't know they existed.

My take: For the most part, things have gone smoothly, and Capital One has done a good job bringing him on board (see below). But it made a mistake with him, one that could ultimately cost the card issuer my son's long-term loyalty, the apparent "misunderstanding" about his agreeing to add credit insurance to the account. 

And it only netted the bank $0.93.

I was surprised how upset my son was at the credit insurance fee tacked onto his bill. Even though it was less than a buck, he was determined to reach someone at the bank right away to get it removed and stopped. He felt that the bank used his naivete against him. He felt betrayed and preyed upon. That's not a good way to start a relationship.

Capital One Online Banking/Card Sign-up Process
I took the opportunity to document Capital One's online banking sign-up process. It was clean and intuitive and took just a few minutes.

Step 1: Terms and conditions (13 Feb. 2010)
Note: The first page, shown below, was reached through a link in an onboarding email message encouraging signup for online banking.

Step 2: Authentication

Step #3: Select username and password
Note: Email address was prefilled from the info from original online app

Step #4: Choose security questions

Step #5: Encouragement to sign up for estatements
Note: Default set to Yes; also, there was no incentive to go paperless,
even $1 might have swayed him

Note: You must call customer service to switch from paperless to paper statement, again a disincentive to choosing paperless

#6 Confirmation (with a dash of humor)

#7 Set up payment account

#7a Confirmation

I was so enamored with ING Direct's Black Friday mortgage special, 5 years at 3.75%, that I applied online that day (Nov. 27) and have been going through the mortgage refi process for the past month. To determine how the loan is progressing, applicants may call a toll-free number or check their loan status online. While the online option is a little hard to find, it's convenient, at least in the early stages of the process.

The loan-status feature is buried in the Open an Account page at the bank's main website (see screenshot #1, below). Applicants log in with their customer number and last four digits of their social-security number (screenshot #2). The bank recaps the loan info and displays a quick checklist of the major steps in the process (screenshot #3): 

• Application submit date
• Preliminary decision date
• Document ship date
• Loan offer acceptance
• Documents received
• Home appraisal completed
• Title search completed
• Closing date scheduled

The popup also contains a handy link to an FAQ explaining all these items, but it is missing a logout button.

Analysis: ING Direct's online loan status is an important customer convenience. It worked great during the first few weeks while the important milestones were being reached. But now at the end of the process, I'm still left wondering what's going on. There is one orange ball left uncompleted on the list, the all-important closing date. So 32 days after I applied, I still don't know whether underwriting has signed off on the income verification, appraisal, and title search, all very real concerns for customers these days.

The bank has sent only one email during the application process, a short message on Dec. 22, confirming that all the documents have been received.  Given that my 30-day lock period expired over the weekend, the bank definitely needs to improve the frequency and timeliness of its communications. 

Overall, it's a respectable effort, but not up to the high levels of online support I expect from ING Direct.

Grades: B for the loan-status tool; B- for location, and C- for proactive customer communications

1. ING Direct applicants must find the tiny link on the Open an Account page (link; 29 Dec 2009)

2. Popup loan status login screen

3. Loan status popup

These days, most major banks and credit unions do a pretty good job of exposing their various products and services to website visitors. But when it comes to actually moving visitors through the sales process, it's a mixed bag. The best have account selection tools, online applications (see note 1), readily available help, good benefits-oriented copy, and so on.

But you still won't mistake banking sites for a retailer. Most banks still assume that visitors are already familiar with their brand and are predisposed to buy. While that thinking works fine with walk-in traffic to bank branches, on the Web it's a different environment, with near-infinite choice.

You need to quickly impress visitors, then provide incentives to get them to take action. I always go back to the AIDA framework from Marketing 101: Attention, Interest, Desire, Action. Many financial sites are effective only for consumers already ready to take action. They are missing crucial financial AID (sorry for the weak effort at banking humor).

HSBC diverts customers to a lower-cost checking account
However, there are many exceptions. For example, HSBC's U.S. website. The site really sells. There are dozens of little things they do right, and a few that could be improved, but here's something I've not seen before.

When looking at checking account options, I clicked on the Basic Banking package. Instead of telling me about the account, I was greeted with a popup, on top of the grayed-out screen, explaining how I could save the $3 per month charge by choosing Choice Checking (see screenshots below).

I never thought I'd see a major bank, or large retailer for that matter, trying to push me into a lower-cost option (see caveat below). But it makes a ton of sense. HSBC knows that most website visitors are expecting a no-monthly-fee checking account. So why not direct them that way instead of just hoping they find it before heading off to ING Direct or other online options?

But I wonder how many visitors are happy with this recommendation? Choice Checking is only conditionally free (which is disclosed in the popup). The account has a direct-deposit or minimum balance requirement to avoid the $8 monthly fee. Customers unable to muster those hurdles would be better off with the account they were originally looking at, Basic Checking. And, many visitors, especially outside the branch footprint (note 2), might prefer the Online Payments Account from HSBC Direct.  

Only HSBC knows whether the end results are positive, but it's a great marketing technique regardless. 

HSBC Basic Banking landing page (8 Dec. 2009)

Landing page for "lower cost" option
Note: It's only free if you have direct deposit or maintain a $1500 combined balance (highlights below are mine).

Notes:
1. For more information on the online sales process, see Online Banking Report: Online Account Opening.
2. We have several HSBC branches in the Seattle area, so the results of this cross-sales experience could have been different if I'd been searching from a different IP address. It's possible they had a cookie on me from present visits as well.

My son is almost half way through his second year of college, so we figured it was time he had a credit card. He's proved incredibly responsible with money, even avoiding dreaded debit card overdrafts so far. It's a good time for him to start building his credit history. And because he flies cross-country to school, I feel better knowing he has an emergency line of credit in his wallet.

Unfortunately, his student checking account provider, Chevy Chase Bank, hadn't offered him a preapproved MasterCard/Visa, so I've been watching his mail at home. It will come as no surprise that preapproved mailers to college underclassmen have been scarce. This summer he was courted by Discover Card and a higher-fee MasterCard (or Visa?).  But I was hoping for a preapproved fee-free MasterCard/Visa for maximum utility. 

This fall, Capital One (note 1) began to send my son MasterCard offers via snail mail. Right before Thanksgiving, the fourth or fifth piece in the series landed in our mailbox. He looked at it over the holidays and applied online for the card on Sunday. The fee-free card is no bargain for revolvers at 22.9%, but that's to be expected in this economic and regulatory environment.

The mailer offered the option of applying by telephone, mail or online. But the latter was clearly encouraged with a red badge, a 60-second response time, and a personalized URL with my son's name (e.g., John.Smith.getmycard.com).

Online application: The application process was a breeze. It was straightforward and fast and took less than five minutes, start to finish. The utilitarian online application design (screenshot 2) was easy to navigate and included ample embedded help, but no 800 number or online chat. The only unusual feature was the ability for users to select from about 16 different card designs. 

Because he was applying from a direct mail piece that included full Reg. Z disclosures, they were not repeated in the online app.

In total, it took about 4.5 minutes to complete the app process, and approval was granted in less than 10 seconds. My only complaint, a 22-digit offer and access code combination. Here's the exact timing:

• 30 seconds -- Type personalized URL and load website
• 30 seconds -- Type 16 digit reservation number and 6-digit access code
• 3 mins and 30 secs -- Complete application form
• 10 seconds -- Wait for credit decision

Onboarding: The initial onboarding process was almost nonexistent. Cap One didn't even send a congratulatory email on what is a major milestone of someone's banking life: their first credit card. All he received was the tiny "Congratulations! You're approved" screen at the end of the online approval process (see screenshot 3 below) along with instructions that his card would arrive in 7 to 10 business days. And there's no way to access the account until the card arrives.  

Grade: Capital One gets an A for account-acquisition marketing and online app mechanics, but earns a B- for first impression, and an incomplete for onboarding so far.

1. Capital One personalized application screen (29 Nov 2009, 8 PM Pacific)
Note: To begin the process, the applicant enters a 16-digit reservation number and 6-digit code found on the snail-mail piece.

2. Online application

3. Congratulations screen

Note:
1. I didn't realize until today that Chevy Chase is now owned by Capital One, which could be why my son has been receiving Capital One credit card offers. However, there has never been any mention of Chevy Chase or his checking account in the mailers. And one of the application questions was: "Do you have a checking account?"
2. For more info on how to create a winning online application, see our Online Banking Report: Online Account Opening published in June 2009.  

Sometimes, banks forget the importance of simplicity, especially when it comes to less-than-crucial, ancillary services such as a prepaid teen account. Sure, I'd love to have a reloadable card that my son could stow in his backpack for emergencies. But I'm not going to spend a half-hour looking for one, applying for a new account, and then trying remember where and how to access it (see note 1).

But if the process was painless and integrated with my online banking, I'd buy a half-dozen prepaid cards, one for each child, one to toss in the glove box of each car, and another for my briefcase (note 2). 

It looks like PayPal is the first to step up to this challenge with its new student account (company blog post) which has been in beta testing since last November (beta site; note 3). The account is free of charge (note 4), and signup takes just 51 seconds.

Signup & funding
Current PayPal customers can sign up their kids for an account in under a minute. That includes clicking on the <paypal.com/StudentAccounts> URL, completing the six-field app (see first screenshot), all the way to the approval screen confirmation (screenshot #2). And, half that time was simply logging in to my PayPal account. If I'd already been logged in, the total time to complete the application, process it, and receive approval would be just 23 seconds! That's the fastest financial services application I've ever completed by a factor of 10 (note 5).

The account, which shows up as a link at the top of the parent's PayPal account (screenshot #3) includes parental controls for all transaction types and comes with both an online account and a PayPal prepaid MasterCard debit card. Both will come in handy for today's teens, who cannot easily shop online without credit or debit cards of their own.

Transferring funds to the account takes mere seconds, and parents can choose from one-time loads or periodic transfers so the card can be used to accumulate an allowance (screenshot #4). Transfers show up in real time, with green color-coding, after hitting enter (screenshot #5).

Overall grade: I give it an A+ for ease of use and an A+ for value, a winning combination. Nice work. 

1. PayPal teen card application for current PayPal customers (12 Aug 2009)

2. Congratulations screen

3. Student account, and prepaid balance, shows up on the parent's main account overview page 

4. Funds transfer screen 

5. The funds transfer is immediately displayed within the student account area

Notes:
1. The final item is why the Visa Buxx card never worked for me. I bought one but could never remember how to access it or add more money.
2. Verient is doing some very cool things to help in this regard; we'll profile them here soon.
3. Hat tip to Payments News for the link.
4. ING Direct's system for creating a new savings sub-account is similar speedwise, but it's not technically a new account. 
5. The only major fees, besides PayPal merchant fees, are the $1 ATM withdrawal fee and a 2.5% foreign currency fee.
6. For more info on online account opening, refer to the latest issue of Online Banking Report: Improving Online Account Opening ROI.

While reviewing M&I Bank's Metavante-powered online application for our latest report (note 1), I noticed the bank's Online Security Guarantee (first screenshot below).

It's important to post reassurances prominently on banking websites, especially on product application pages. It helps users overcome their security and trust fears and move forward with opening new accounts online. 

Often the explanations of guarantees are full of legalese and exceptions in the fine print, reducing their effectiveness. But M&I does a good job with concise and easy-to-comprehend copy (see second screenshot).

Here are the four parts to the guarantee, taken directly from the website:

• Zero Liability Protection: You will not be responsible for any withdrawals which result from unauthorized online access to your personal M&I deposit accounts.
• Bill Payment Promise: If we fail to process a payment in accordance with your instructions, we will reimburse any late charges assessed by the payee.
• Security Commitment: We use data encryption to protect you when applying for accounts, conducting transactions or paying bills online.
• Privacy Protection: As further detailed in our Privacy Policy, we are committed to protecting your personal information.

M&I also includes a short section outlining the customer's responsibility to monitor their account and safeguard passwords.

We congratulate both the bank's product group, and its attorneys, for keeping legal language to a minimum . 

M&I Bank's Platinum Checking application (7 June 2009)

 M&I Bank's Online Guarantee page (link), 7 June 2099)

Note:
1. For more info, see Online Banking Report: Opening Accounts Online, published June 21, 2009.

Business runs in cycles and right now many of the large financial brand names are a bit tarnished. Over the next few years, we'll likely see community banks and credit unions turn up the volume on marketing campaigns emphasizing their low-key, low-risk community-based services.

We ran across this good example two weeks ago at $930-million (assets) Alpine Bank of Illinois. The bank uses a clever escape theme that should resonate with hard-core computer users and novices alike (see screenshot 1 below). The eye-catching banner sequence (see screenshot 1a) asks a serious of three questions, then culminates in an escape key (ESC) inviting users to click to a landing page with more info.  

Then on the landing page, the "Esc key" in the lower right (screenshot 2), takes users to an online Contact Me form (screenshot 3) that includes simple contact info to be used for a followup call or email (customer's choice). This is a nice high-touch alternative to regular online app, that can take 7 to 10 minutes to complete and are abandoned at alarmingly high rates (see note 1).  

Analysis: Overall, the campaign is clever and well presented (note 2). But the bank could make several landing-page changes (screenshot 2) to improve conversion rates: 

• Increase the visibility of the $25 account-opening bonus. It's currently buried in the first paragraph. I didn't even notice it until the third time we looked at the page (note 3).
• The account opening link on the landing page should be enhanced with one or more brightly colored Open Now button.
• While the "escape key" is clever, users may not realize that's how they are supposed to request more info. The bank should add a More Info button and/or add "more info" to the Esc key graphic.
• On the Contact Me form, their should be an Open Now button for users who decide they are ready to open immediately.

For more info on improving your online account opening results, see our latest Online Banking Report: Opening Accounts Online, published last week.

1. Homepage (16 June 2009)

1a. Homepage banner ads (they cycle through in this order)

2. Landing page (from homepage banner; link)

3. Contact Me form (link)

Notes:
1. For more info, see Online Banking Report: Opening Accounts Online, published last week.
2. One small nitpick on the design: The banner ads should only cycle one or two times per visit. There's no need to keep cycling the banner ads over and over, it's annoying for someone trying to find something on the homepage.
3. The $25 bonus does have a small banner on the homepage, lower right. But visitors attracted to the large escape banner could easily miss it.

We just completed our latest Online Banking Report. It will be mailed to subscribers this week.
It's also available online here. There's no charge for current subscribers; others may access it immediately
for US$495.

---------------------------------------------------------

Improving Online Account Opening ROI
Ten strategies to increase online application conversion rates

102 pages (published 21 June 2009)

In this report (abstract PDF), we focus on ways to increase conversions and improve your results when opening financial accounts online or over a mobile phone.

The online application is the new branch new-accounts desk. And, just as you provide ongoing support, training and incentives to branch-based sales staff, you must continually fine-tune your online sales process.

In our experience, this is an area that needs attention at most financial institutions. Things have greatly improved during the 10+ years we've been tracking online applications. However, during the research for this report, we reached dead-ends at three of the 10 applications tested (note 1). That just can't happen.

The report outlines a 10-step approach to improving the process: 

• Direct users to the application
• Set expectations
• First things first
• Guide customers
• Bundle mobile access & alerts
• Upsell
• Fund
• Ask for referrals
• Stay in touch
• Humanize the process

We reviewed the online applications of the following companies:

• Bank of America
• BECU (powered by uMonitor)
• Capital One
• Chase Bank
• First Arkansas Bank & Trust (powered by FirstROI)
• Flagstar Bank (powered by uMonitor)
• HSBC Direct
• Huntington Direct (powered by CashEdge)
• M&I Bank
• National City
• Verity Credit Union (powered by Andera)
• Wells Fargo
• Zions Bank

Finally, a 10-year forecast for online account-opening volumes in the United States is presented.

M&I Bank has an attractive and informative application start page (9 June 2009)
Note: The online banking guarantee at the bottom is a good way to improve user trust.

Note:
1. Granted, user error was the problem in two of the three failed apps; however, we weren't purposely trying to make mistakes. The online application should have provided assistance in correcting them, rather than leaving us hanging.

Chase Bank is sparing no expense in launching its brand in former WaMu strongholds, particularly Seattle, the previous headquarters of WaMu. The bank is remodeling the branches, hanging new signage, taking full-page ads in the Seattle paper, running radio spots, and bidding for the top spot on Google.

Analysis
The Chase Washington State microsite is gorgeous, really impressive. The graphic design is eye-catching, serene, and uplifting. Chase's logo is superimposed where the sun would be, creating a nice effect and great first impression of the bank, which is new to Washington state (see screenshot 1 below).

While the website designer scores an A+, the online app gets an incomplete (as in, I couldn't get it to work), at least for the checking account I tried to purchase (note 2). 

My first issue with the application, and this is more of a nitpick, is the location of the compare accounts links. Chase lists four main checking choices plus two student-oriented accounts (see screenshot 2 below). Since the account names provide no help in selecting the right one, I looked for a way to compare accounts. But my eyes were drawn to the Get Details and Open now buttons, and I never saw the links in the upper right corner. Since most users will need help selecting the right checking account, the Compare option should be at least as prominent as the Get Details button.

The much bigger issue prompting me to write this article is that online account opening didn't work, at least for the account I selected, Chase Premier Platinum Checking. After completing the first page of the online app (see screenshot 3 below), I was greeted with a cryptic message telling me to visit a branch for help (see note 1). And this is from a bank introducing its name in a new market.

Lessons for financial institutions:

• Make sure you test all the options in your online application (see note 3)
• If there are valid reasons why you cannot open the account online, explain them to your customer in detail (and don't lead them to believe the account can be opened online if it can't)
• Provide more options for help than just "visit your branch;" for example, online chat, telephone numbers, Web-based inquiry form, and a call-me button
• APOLOGIZE and thank the customer for their application attempt. Chase does neither. The bank's entire message (see screenshot 4):

   Unable to Continue: We are unable to open a Premier Checking account
   online. Please visit your local Chase Branch for assistance.

1. Chase Bank's Washington-state transition site main page (1 June 2009)

2. Chase checking account options

3. First page of Chase's online loan application

4. Fail screen displayed after hitting next on previous screen 

Notes:
1. I had selected "not a Chase customer" so I thought perhaps I was having trouble because the bank's cookie's showed me to be a Chase card holder. So I tried it on another machine, with the cookies erased, and the same thing happened.
2. The problem seems to be with Premier Platinum Checking. I was able to start the app process just fine with Chase Checking.
3. Chase isn't the only one with online account-opening problems. I am researching account opening for an upcoming Online Banking Report, and just today I reached a complete dead-end in the online application at a large credit union, and was forced to abandon the app late in the process, after I'd been through credit-bureau validation. 

Change Sciences, publishing under the moniker of its new Kantuit research service, just released its latest financial services website evaluation. The report uses proprietary user-experience modeling to rate, rank and compare 18 leading banking sites on how easy it is to find, select, and open a new deposit account online (see Table 1, inset).

Citibank and WaMu were ranked one and two and scored significantly better than the others. Wachovia was third, scoring about 20% higher (the lower the score, the better). Bank of America, Fifth Third and BB&T were in the next tier, finishing about 50% higher. Among mega-banks, U.S. Bank had the worst score, more than double the leaders. 

The Change Science score includes various components that show how a consumer may struggle with various aspects of the application process. These individual scores are totaled to come up with the final composite score shown in Table 1 right.

For example, Figure 1 below illustrates the scores for "Effort (expended) finding and learning about deposit accounts" with Fifth Third leading the way with a 0.1 score, compared to Peoples United Bank, the worst of the sample, scoring 19x higher at 1.9

Download an abstract of the research results here (registration required). The full report runs $4,000; a significant investment yes, but you could make that up with just a handful of additional good deposit accounts. 

 WaMu Welcome to Online Business Banking
I recently opened a business checking account at WaMu and logged onto online banking for the first time yesterday (see note 1). The 4-step process was done completely online, which, while user friendly, may not be the best idea security-wise. Anyone with enough detail about my business would have been able to log in and abscond with my $100 opening deposit. That's a topic for another day.

I was impressed how well the process worked and that the bank sent an immediate message to my email address welcoming me to online banking. It's a good message, presenting nine bullet-pointed account benefits and encouraging me to sign up for Business Bill Pay with another four bullet points.

The only thing that could be improved is the bare-bones signature area. It would be much better if my business banker and/or branch manager signed it, with an actual signature if possible. However, I'd accept someone from the central customer service area if they used an actual name and provided contact info within the letter.

Finally, the bank is missing an opportunity here to see if my initial experience has been positive. There should be a line that says something like "Please contact me if you have any questions or concerns about your new account" (note 2). Even better would be a short survey to provide feedback on the account-opening process.

Overall, I give it an A-.

Valentine's Day from Virgin Money
While I don't think Valentine's Day represents a particularly strong marketing opportunity for banks, at least one financial services company marked the date with an email to its customers (see note 3). Virgin Money sent this simple message to its customers yesterday morning (7:01 AM Pacific).  

Notes:

1. I opened the checking account in the branch because it was a corporate account with multiple signers. The business banker offered to set up online banking for me, but I declined so that I could see how the process worked.

2. In fact, I did have trouble ordering paper checks for the new account, something the bank could easily fix if they realized they had the problem. A feedback mechanism in the welcome letter would provide plenty of good ideas from new customers, and the occasional headache, of course. 

3. I purchased a $99 loan package from Virgin Money in December (see Online Banking Report #150 for more info). Sadly, only four Valentines greetings made it through my spam filters yesterday. My wife (thanks, honey), HP Logoworks, the alumni association from Iowa State University, and Virgin Money. An interesting mix.

It's been a few years since I've opened a new checking account online. Even though it took more than a week, Bank of America did get my account set up without a glitch. That's a significant improvement over my last experience when I applied for a small business checking account online at WaMu and never heard from them again (note 1).

I wrote about the mediocre application process at Bank of America two weeks ago (here). But its so-called onboarding process was even worse (note 2). Below is my list of complaints. While none are deal-breakers for a new account holder, in total they created a relatively bad first impression, especially surprising for a company that has built such an outstanding online banking program used by 23 million Americans.

My main issue: The bank still relies on snail-mail to onboard a new online customer. And it arrived in five separate pieces beginning more than a week after I'd applied online. Here are the mailings alone with the approximate day of arrival (the day indicated is the approximate number of calendar days after submitting the application online note 3): 

• Day 10 (calendar days after applying online): PIN mailer
• Day 12: Welcome mailing with signature card
• Day 12: Online banking letter
• Day 14: Debit card
• Day 21: Credit report from the monitoring service (I purchased).

In comparison, I received just two emails, one confirming that I'd applied and one a week later telling me my account was ready.   

1. After submitting my online application in mid-November, I was told it would take "additional processing time," and I heard nothing for more than a week. That's way too long to keep someone waiting for a new account. I've had a credit card in good standing with Bank of America for more than a decade, what could possibly have caused the holdup in adding a free checking account?
2. The first thing I received in the mail was my debit card PIN mailer with nothing other than a generic PIN number. That shouldn't be the first thing that comes in the mail. 
3. Over the next few days, I received a letter about online banking, my debit card, and a new account package with a "signature card" that must be returned. From a consumer standpoint, three separate mailings creates more confusion than is necessary.
4. The signature card form was poorly designed. I've been in banking for more than 15 years, and I didn't understand half of what was on that form. It looked like something that a bank rep would fill out in the branch, not a customer form at all. And there were no instructions with the form.
5. The bank didn't send any paper checks, which is fine, but it neglected to tell me what routing number to use to get funds into the account electronically. I had to call the bank to find out.
6. Furthermore, the bank didn't provide any deposit slips or info on how to get more money into the account — a serious omission for a checking account!
7. The new checking account did not show up with my existing BofA credit card when I logged back in. I had to call customer service in order to link my card to my checking account, even though I had signed up for the checking account using a link in the online card-management system! Apparently, this has something to do with the unique system that houses checking accounts in Washington and Oregon. The service rep was nice, but couldn't really explain why my online banking didn't work right. And I'll only be able to see one of my two BofA cards with my checking account. I will have to use two separate online banking logins to track all three accounts; again, this is a problem unique to Pacific Northwest customers.
8. Even though I deposited $1,000 into the account via credit card, I did not receive any confirmation of that transfer.
9. During the application process, I signed up for a free trial of the bank's credit monitoring service. I received my paper credit report in the mail within two weeks, but again, no email confirmation of the service was received. The paper report also neglected to mention anything about the free trial or the pending monthly charge.  

Notes:
1. Since this first incident occurred at least three years ago, I won't be too critical of WaMu here since the initial incident is well beyond the "blogging statute of limitations." While I cannot rule out user error on my WaMu checking account application, I'm reasonably certain I submitted a valid application. I had lunch with a WaMu exec yesterday, and he assured me the bank's online application process works extremely well these days. 

2. I hold Bank of America to a much higher standard here. With 23 million online banking customers, they have the resources to make the process flawless.

3. Unfortunately, I failed to log the mail and am relying on memory here, but it was just a few weeks ago, so this is accurate plus or minus a day or two.

For some time, Bank of America has been offering its credit card customers a cash bonus for opening a new checking account. Today, with $75 dangled in front of me, I decided to take advantage of the offer and went ahead and opened up a free MyAccess Checking account online. Below is a screenshot of the main credit card page with the offer strategically placed in the upper-left quadrant.   

While the online account opening process was relatively smooth, there are a number of things the bank could do better, starting with pre-filling the application with my personal info. Even though I have two Bank of America credit cards and I responded to the offer from within the secure online banking environment, I still had to start the application from scratch.

And taking a queue from online retailers such as Dell, the bank drops a number of cross sells into the application process.  I'll have a full analysis of the account opening process in our upcoming Online Banking Report on online account opening to be published in first quarter. 

Given how many times I've had to tell clerks, "no, I really don't care to save $18 on my purchase today" (by adding yet another revolving credit product to my life), the come-on at checkout must work pretty well. Amazon has used this approach at online checkout for years, offering up to $30 in savings if approved for its co-branded credit card.

eBay recently began pitching its eBay MasterCard to bidders in its online auctions. As you can see below, a small "up to $25 back" is presented to users as they consider what bid amount to enter. The card is issued by GE Money and requires a PayPal account. Customers can opt to display their eBay userid on the no-annual-fee card.

Analysis
I also received an email offer last night (7:34 PM Pacific) for the card (see screenshot below). It's an attractive holiday-themed message with the slightly misleading email subject line, "Get 10% off eBay purchases through Dec. 15." I clicked on it wondering why eBay would offer me, a frequent buyer, such a substantial savings. It turns out to only apply to the first $250 spent, for a $25 savings, not so rich compared to other credit card offers I typically receive in the mail. But with the tight integration and 30-second loan application, it should provide a reasonable flow of new applications.  

The online application is simple and fast with pre-populated personal info and a 30-second approval promise. All I had to do on the first page (note 1) was decide whether to put my eBay ID on the plastic and enter my birthdate (see screenshot below). However, the process is marred by the upsell of credit insurance disguised under the seemingly innocuous heading (see closeup below):

Yes, enroll me in the Account Security program.

Granted, the cost is clearly disclosed, however, many applicants will check the box thinking they are protecting themselves from fraud, and only later find out they are paying an extra 1.5% per month (that's $900 per year on a $5,000 balance) for an insurance product they probably don't need. With all the problems its had with phishing and fraud, eBay should NOT trick customers into signing on for credit insurance under the guise of "security." 

Email solicitation from eBay (19 November 2007)

Landing page for email solicitation of eBay MasterCard (19 November 2007) 

Note:

1. I did not proceed past the first page because I could not tell if hitting "continue" at that point would trigger a credit application. They may ask income and employment questions on the next page.