A new Javelin Strategy & Research report, which included a“secret shopper” look at several credit unions, reveals there maybe flawed online account opening processes at many U.S. financialinstitutions, the research firm said.

According to the report, “Faulty Process Hobbles FIs in theBattle for Customer Acquisition, Profitability and Retention,” justa little more than half of online checking account applicantssucceed at completing the process.

The Pleasanton, Calif.-based firm said based on data itcollected from more than 5,000 consumers in March and a “secretshopper” survey with 15 banks and credit unions, there is “a raftof frustrations that stem from limited application menus,unfriendly user interfaces, Web glitches, human intervention in asupposedly automated process and other shortcomings.”

In its “secret shopper” investigation, Javelin targeted 12banks, including the 10 largest banks, and three credit unions:$45.5 billion Navy Federal Credit Union of Vienna, Va., Phoenix-based, $2.8billion Desert Schools Federal Credit Union and $794.2 million Workers' Credit Union in Fitchburg, Mass.

Javelin assessed the types of accounts offered by the financialinstitutions for online applications, using website research and calls tocustomer service representatives when necessary, the firm said.

The firm reported unsuccessful online checking accountapplicants are either rejected, abandon the process or are forcedto visit a branch, and failure and abandonment rates are“alarmingly high” for applicants who are new to a financialinstitution or less tech-savvy.

“Online account opening plays an important role because it canshape the first impression that consumers develop when they try toestablish or deepen an online relationship with a financialinstitution,” Javelin said. “Javelin data shows, however, thatbarely more than half of online applicants for a basic checkingaccount succeed in opening and funding the account.”