UK banks are losing around 40% of their applicants due to lengthily and tedious onboarding processes.
That’s according to research from Signicat, published in its report “the Battle to On-Board”. The report states that more than a third of process abandonments were down o the length of time it takes for the user to complete them, while another 34% of drop-outs were down to the bank requiring too much personal information.
The number of abandoned applications on average has also increased from 26% to 45% in the past year.
Respondents with positive experiences had a far quicker on-boarding journey than those with negative experiences. The average time for the negative proportion was almost twice the overall average at 34.71 minutes.
When asked if a totally online procedure, where identity verification and KYC would be done over the computer, would encourage more applications, just over half said they would be more likely to apply.
Data from the survey also shows that 97% of respondents had access to a driver’s licence, passport of utility bill that could form the basis of an online identity for future verification.
“Banking is digital but on-boarding is still analog. Old-fashioned paper processes equal unhappy consumers, high abandonment rates and lost business for financial institutions,” says Gunnar Nordseth, CEO of Signicat.
“With millions spent on attracting new customers, the on-boarding process is turning them away at the final hurdle. As financial institutions look to increase revenue and market share, underpinned by a massive investment in digital, why is it so difficult for consumers to become customers?”