Most people don’t use the words “old” and “digital” in the same sentence, but for Q2 customer Axos Bank – one of the nation’s oldest and most trusted digital banks – these two words best describe this digital-native financial institution.
Launched in 2000 with the driving principle of “Banking Evolved,” Axos Bank is a leader in technology-driven financial services with a proven track record of industry recognition: Forbes calls Axos one of America’s best banks, GOBankingRates puts it in the top 10 best online banks for 2020; and it’s been rated Best Checking Account Overall by The Ascent; Best Online Bank for Savings & Checking by Millennial Money; and America's Best Online Bank by MyBankTracker.
With reviews like that, it’s clear that Axos Bank customers – many of whom are digital natives, just like the bank itself -- love its commitment to innovation, efficiency and ease of use. Vice President of Consumer Product Management Mike Copans says, “We’re always looking to provide features that will benefit our customers with a seamless digital experience, which has resulted in an increase in our deposit volume.”
Q2’s 2021 acquisition of the digital account-switching solution ClickSWITCH has enabled publicly-traded Axos Bank to speed up and simplify new account onboarding by allowing customers to quickly, securely and effortlessly switch their direct deposits and automatic payments over to their new Axos accounts. All without the manual paperwork, headaches and delays previously associated with this type of change.
Once Axos Bank incorporated Q2 ClickSWITCH, it immediately added an option for new account holders to fund their accounts through direct deposit – rather than locking customers into one-time bank transfers or check deposits traditionally required to fund new accounts. With the ClickSWITCH capability, Axos bank was able to remove the customer’s task of manually redirecting their automated payments.
“We can now immediately use direct deposit as a key lever in helping to establish a primary financial relationship with our customers,” Copans says. “Initial metrics show around a 30 percent lift in deposit balance volume for customers that have set up direct deposit verses those customers that have not.”
With deposits being the lifeblood of any bank’s profitability, the solution not only pleases customers, it impacts profitability. With 70 percent of the Axos customers who established direct deposits through ClickSWITCH continuing to receive ongoing direct deposits, Copans says the “stickiness” of the ClickSWITCH pathway has been instrumental in seamlessly growing account balances and maintaining Axos’ primary bank status. “Customers that use Axos as their primary financial institution have a higher lifetime value relative to other bank customers. This results in customers having higher average balances, a greater number of financial products with Axos, and longer tenure duration of relationship,” he says.
The traction is only gaining. “Month over month, since the launch of the ClickSWITCH feature, we continue to see positive growth in both the number of deposits as well as overall deposit volume – all while maintaining a consistent average deposit amount,” he said. “Additionally, 80 percent of customers that view the ClickSWITCH feature engage with it, and 80 percent of customers that engage with it end up submitting a direct deposit request.”
With Q2 ClickSWITCH embedded into Axos Bank’s digital banking platform, it has transformed an otherwise tedious process into just a few clicks. “Previously, changing or creating new direct deposit instructions meant individuals had to complete a fragmented workflow that involved logging onto their company’s payroll provider to request a change. They often had the additional step of filling out a manual form from their employer’s HR department, or some combination of both.
“(Before Q2 ClickSWITCH), Axos provided a PDF form for customers to submit to their employer or payroll provider, but the form often didn’t meet individual company requirements, which inevitably led to requests not getting fulfilled. The integration with Q2 ClickSWITCH gives our customers the ability to switch their direct deposit through a seamless, secure and fast digital experience.”