What Is Account Origination?

Account origination is the process that financial institutions use to onboard new customers. It encompasses activities like ID verification, Know Your Client checks and anti-money laundering compliance. In addition, it involves the creation of customer records, including payment and contact details. This is important for the success of an account opening strategy.

For credit unions, a single loan origination system allows them to maximize lending efficiency and deliver a seamless account opening experience that boosts net promoter scores. It also ensures that all products are supported by a strong back office, making it easier to meet the many regulatory requirements across geographies and jurisdictions.

A lender may charge an origination fee to cover the cost of processing a loan application, such as for a mortgage or home equity loan. The fee is typically a percentage of the total borrowed amount, and it can be deducted from the loan disbursement or paid upfront. Lenders often offer loyalty discounts or relationship based pricing to reward loyal customers with lower rates than others.

Demystifying Account Origination: A Comprehensive Guide to User Registration

A credit card or bank account can be a convenient way to manage daily spending and save for long-term goals. But before you open an account, take the time to understand the fine print and fees. For example, find out if the account is interest-bearing and whether there are any minimum balance requirements or fees for e-statements or overdrafts. Also, compare the costs of different banks and credit unions.