Frequently asked questions:
- Why use our Online Account Opening Solution?
- Why go online for core deposits?
- How can I calculate online deposit acquisition costs?
- How long will it take to get our system up and running?
- What will I need to start opening accounts online?
- What will it cost?
- How does the compliance work?
- How does the account opening process work?
- Is a photo ID, like a driver's license, required to open a deposit account?
- How do core deposits beat wholesale funding?
- Are Internet accounts expensive?
- Can I download a printed demonstration with prospective costs and implementation material?
- Can I talk to a current user?
- Can I talk specifics with a company representative?
- How do I get started?
Why use our Online Account Opening Solution?
It's completely independent of your core processor.
Our program requires no participation of your core processor until your representative actually inputs the new account data. Time to implement this program is days, not weeks.
Strict compliance controls built in and operated by your current bank staff.
We are not a fan of Internet account programs that are untouched by human hands. We think that security and compliance reasons make it highly desirable to have a "semi-automatic" program that lets your bank have a human review the CIP and Underwriting BEFORE an account is opened. That's exactly how our process works.
Most importantly, our system is ready now. You'll be opening accounts online in as few as 10 days.
Why go online for core deposits?
A big shift in core deposits is happening in markets all over the US. Customers are looking to put their money in smaller, community banks, perceived safer than the national behemoths. So, you have regional and national markets that are ready for your bank.
Online deposits are less expensive to acquire. Most banks calculate that the cost to acquire deposits makes up about 80% of the bank's "non-interest expense," and in some markets it may be more than that.
Gathering deposits online costs are usually 100 - 200 basis points less than the traditional bricks, mortar and advertising methods.
How can I calculate online deposit acquisition costs?
We have created a spreadsheet that compares the cost to acquire Internet deposits with the traditional costs to gather deposits: bricks, mortar, people and advertising.
Apple Advertising Cost of Funds Worksheet.xls
The spreadsheet is not intended to replace your bank's ALCO software, but it does give you a "view from 5,000 feet" and helps you to understand how Internet deposits can dramatically lower your cost to acquire core deposits.
How long will it take to get our system up and running?
Your system can be launched in as few as 10 days. (Really. This is not brain surgery and because your core processor is not involved, the process will run quickly.)
What will I need to start opening accounts online?
Our Online Account Opening Software. We'll brand it to match your bank's existing look and feel.
Secure web hosting service. This may be with your existing hosting provider or we can arrange a source.
- Secure FTP software. This is included in your initial setup.
- Computer with a printer and secure Internet connection. You most likely already have this in your bank. May be a Windows PC or Mac.
- Any version of Microsoft Word. Used to merge online data into a customized CIP document that we create for you.
- Sub-domain name, e.g. online.yourbank.com. We can arrange this, but your IT people will need to be involved.
- Email address. Used for application notifications or customer questions during the application process (most likely you'll want more than one person in your bank to receive these notifications, depending upon your security policy.)
- Physical address. Used for deposits not made by EFT (your operations center, for example.)
- All account disclosures in electronic form (text or PDF) for each product offered. We will help you prepare, based upon your compliance documents.
What will it cost?
We've priced our Online Account Opening Solution with community banks in mind. Software costs below assume a standard configuration with a single bank user. We will happily discuss pricing for larger and more complex institutions.
Start-up cost |
Monthly fee |
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| Online Account Opening Software | $ 12,500 |
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| Remote website setup | included |
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| Client-side setup including FTP software | included |
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| Secure web hosting plan* | $ 150 |
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| Maintenance Plan A: Unlimited monthly support for account setup and changes. Includes all software maintenance and upgrades. | $ 350 |
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| Maintenance Plan B: We train you to perform your own maintenance and account changes. Software maintenance and updgrades are included. | $ 1,000 |
$ 150 |
*We have recommended secure hosting providers, but clients are free to make their own selection. $150 per month is the cost we routinely incur for this service. Client costs may vary.
How does the compliance work?
We have prepared all the necessary compliance disclosures and they are already in the system. This includes the ESign, Truth In Savings and others. We are happy to revise and customize the documents as needed. The account opening program assumes the bank will require a signed signature card and that the card will be sent to the customer and returned through US mail. Your process may be different.
The program generates a work sheet that your staff uses to open account documents and perform CIP. You can download an example of that document here:
How does the account opening process work?
Our system is designed for Internet deposit gathering, but with a human "bridge" between the Internet and your bank's CIF system:
- Once a customer submits an application online, an email notification is sent to the bank operations department (or another assigned bank employee.)
- The employee logs on to the secure server and downloads the application data.
- The employee prints the application data for account approval and CIP download an example of that document here.
- The employee implements your bank's standard CIP steps and, upon approval, enters customer information into the bank's CIF system.
- If your bank has elected to send account documents by US mail rather than by email, those documents are prepared and mailed.
- That's all there is to it! Contact us to talk to an actual bank user.
Is a photo ID, like a drivers license required to open a deposit account?
No. A bank is permitted to have "non-documentary" (something BESIDES a driver's license) means to establish reasonable belief that it knows the identity of the customer. What the regulation says is, "Banks are not required to use non-documentary methods to verify a customer's identity. However, a bank using non-documentary methods to verify a customer's identity must have procedures that set forth the methods that the bank will use in lieu of a photo ID. For almost all of us, that's a credit report.
For you folks who are from Missouri, you can read the entire FDIC release here: http://www.fdic.gov/news/news/press/2004/pr7904a.html
How do core deposits beat wholesale funding?
Building a strong bank depends upon a strong base of CORE DEPOSITS. As recent history suggests, there will never be a time when a bank can depend upon brokered CDs or wholesale funds -- when times get tough, wholesale sources dry up in a hurry, just when a bank may need them the most.
What's new is that a bank can extend its reach for core deposits using the Internet. Internet deposits are not wholesale funds. They are living, breathing customers who will buy multiple relationships and who are willing to do business with an institution that isn't located in their town. USAA is a good example of an institution that has a national account base developed, nurtured and administered online.
Core deposits over the Internet are cheap to acquire -- often much less than 200 basis points -- because a large, costly brick and mortar operation is not required. Since Internet advertising is also much cheaper than traditional media advertising, it is easier to keep deposit gathering costs low.
Are Internet accounts expensive?
It depends on what you mean by "expensive." If you mean that Internet accounts have higher APYs, then, yes, they typically cost more than the traditional accounts your bank offers over the counter.
But if you mean "the total cost to acquire the funds, including overhead costs AND interest costs," then the answer is that Internet accounts are actually LESS expensive than you are paying now, in your local market.
We have a spreadsheet you can use to work this out for yourself, using your own bank's numbers.
Apple Advertising Cost of Funds Worksheet.xls
Can I download a printed demonstration with prospective costs and implementation material?
If you would like to have a complete package of materials, formatted for distribution, including a working model of the "Cost to Acquire Deposits Worksheet," one will be provided for $250. The cost is refundable if you purchase the software. We accept major credit cards, checks and wire transfers. Contact us to arrange for delivery of your package.
Can I talk to a current user?
We can arrange for you to talk to a bank representative who uses our program every day. Please contact us to arrange for you to talk with him or her.
Can I talk specifics with a company representative?
We are happy to answer your questions and to work through the online demo with you. (We can arrange a webinar if you wish us to talk you through the program.) There is no charge for this. Please contact us to arrange a phone or web appointment.
How do I get started?
Call George Self at 800.521.0236, ext. 17, or email gself@appleadv.com. We'll respond before the end of the day. We can demonstrate the program for you in 10 minutes and prepare a proposal for you in 24 hours. We're here to answer your questions and make Internet deposit gathering work for you.
Marketing problems? Give us a call and tell us what you need. It's that simple.