Is Facebook the Future of Account Opening?
GT Bank has rolled out a new Facebook app that allows prospective customers to open new accounts and immediately get their account numbers. Is this the wave of the future?
Any Nigerian that wants to open a new bank account can now do so on Facebook. Well… sort of. They can at least get the process started on Facebook.
To open a new account with GT Bank’s new Facebook app, all users have to do is complete a remarkably simply three-question form. Tell them which type of account you want, give them your email address and specify which state you’re from, and you will be issued an "account number" instantly.
That’s the easy part.
The rest of the process is pretty much like opening an account at any other institution anywhere else in the world. You’ve got to gather up your most recent power bill, your driver’s license and two passport photos (who doesn’t have a couple of those just laying around?), then trudge all that stuff down to the customer service desk at one of GT’s branch locations. Oh, and don’t forget to printout your "transaction code" that the Facebook app generates as a confirmation, which apparently is only good for two weeks.
Reality Check: It doesn’t seem like the system actually opens a new account, nor does it seem there’s any significant interface to the bank’s core banking system. If anything, it appears that the Facebook "account opening" app does little more than reserve an account number (perhaps only temporarily) for people.
Existing GTBank customers that want to open additional accounts can log into the online banking platform and add their new accounts there.
Note: GT Bank has responded with an email clarifying how their Facebook Account Opening system works.
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Account opening is part of GT’s Social Banking suite of services that enables people conduct banking activities like money transfers, mobile airtime purchases and bill payments while on Facebook.
GT was among the first banks in Africa to use social media, and presently has over 1.3 million Facebook fans — more than any other on the continent. GT ranks #6 on The Financial Brand’s ranking of banks with the most Facebook ‘Likes.’ They added a whopping 194,568 fans in the Q2 2013, up 18.6%.
The bank is also very active on Twitter, with 59,332 followers and 12,077 tweets sent, putting them at #5 on The Financial Brand’s list of top institutions. They even have 52,277 people in their Google+ circle, among the highest in banking anywhere worldwide (if not the outright most).
Social Banking is only the latest in a series of tech-heavy innovations GT has rolled out lately. The bank’s other recent introductions include GTBank Mobile Money, an app that allows anyone — customers and non — perform transfers and payments from their mobile phones, the GTCrea8 eSavers virtual account for undergraduates, and the GTBank e-Account.
Read More: Top 100 Most Liked Banks on Facebook
Is Facebook the New Frontier For New Accounts?
Not likely.
Facebook probably won’t become a primary gateway for new accounts any time in the near future. Maybe someday… but not soon. In Nigeria, where GT is based, consumers might have a different attitude towards online security. But in countries like the U.S., Canada and the UK, consumers still exhibit high levels of apprehension towards online security when it comes to their financial information. Study after study shows that adoption of mobile- and online banking solutions suffers because consumers are worried about security. And we aren’t talking about a small minority either; a significant chunk of the population is still wary of online financial tools, even after they’ve been around for years. Not to mention there is a thick layer of distrust surrounding the Facebook platform in general. Plus there are the usual challenges associated with opening any account online, namely ID verification and account funding.
It’s not that financial institutions shouldn’t experiment with- or offer consumers the option to open accounts on Facebook. Just don’t expect a tidal wave of new customers to come crashing through your page. Consumers still have a ways to go before they are fully acclimated to the new digital landscape. Until then, trust, confidence and security will continue to be linked issues.
Banks and credit unions struggle with Facebook at the most basic levels: building fans and creating engagement. While most financial institutions are already on Facebook, the vast majority have fewer than 500 ‘Likes.’ It’s hard to imagine a bank or credit union with only a few hundred fans pursuing an account opening system on Facebook. How many applicants would they see in a year? One, maybe two? Hardly seems worth the investment of time, money and energy to develop, much less expend any marketing capital trying to raise awareness, educate consumers and assuage people’s fears.
Read More: Facebook Engagement in Banking: How The Top 5 Brands Get It Done
Financial institutions with traction on Facebook — those with tens- or hundreds of thousands of fans and a high engagement rate — might consider an accelerated, more aggressive push into this new area. But for the next few years, it’s probably safe for everyone else to sit on the sidelines and watch — see how it goes before jumping on this part of the social media bandwagon. While management advice offered in clichés can be annoying, two in particular seem to apply in this situation: "Learn to walk before you run" (figure out Facebook basics first), and "You’ve got bigger fish to fry" (concentrate on more productive — and proven — account opening strategies).
Here is an email from GT Bank clarifying how their Facebook Account Opening system works.
Thank you for your report on the future of banking. Your contributions have very significant and positive implications for creating an enabling paradigm shift that will foster public acceptance and usage of this platform. In this regard, we are very grateful for the report and would like to explain in greater detail our social banking platform. Kindly see attached and below our response to the write up
GTBank Social Banking offers a variety of services for existing and potential customers to conduct banking transactions safely, quickly and conveniently.
These include:
- Online Account Opening Options
- GTBank Account Balance enquiries
- Money Transfers
- Airtime Recharges
- Real time customer service on our facebook page
GTBank accounts can be opened in two ways on this platform:
1. Regular Account Opening
This involves applicants filling the online account opening form and receiving an identification number. To complete the account activation process, applicants then have to visit any GTBank branch with an original copy of a utility bill, a valid ID, and the identification number generated online.
As soon as these documents are presented and verified, all that is required at the branch is a click to approve the application and the new account is activated. This invariably reduces the time it takes to open an account.
2. Instant Account Opening
Applicants can alternatively select the Instant account option, which allows them complete the account application process and get their account number instantly.
Instant Account applicants are required to upload their passport and scanned signature during the application process. To activate the account for transactions, they simply need to visit their preferred GTBank branch for facial verification only.
The procedure is in line with the Central Bank of Nigeria’s new tiered account regime with different Know Your Customer (KYC) requirements. The features of GTBank instant accounts are:
- Account deposit limit of N20,000 (US$ 125) per transaction
- Account balance limit of N200,000 (US$ 1,250)
- Instant account holder debit cards cannot be used for online transactions nor can International funds transfers be performed with this account.
Applicants who exceed the transaction threshold for instant accounts can upgrade to regular GTBank accounts by simply visiting any GTBank branch and presenting the required upgrade KYC documents.
We hope this provides more information about the GTBank Social Banking Initiative. Our statement can be verified by simply visiting www.facebook.com/gtbank and clicking on the ‘Open an Account or Social Banking’ tab.
Sincerely,
GT Bank
