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Signicat: 41% of Europeans shut off from financial services in lockdown

By Sunniva Kolostyak

July 07, 2020

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Digital identity specialist Signicat has found that 41 per cent of consumers across Europe have been unable to access new financial services as a result of lockdown restrictions and a lack of access to digital options.

In a research report, the Norwegian identity provider found that while consumers have had to turn to online and mobile channels in lockdown, financial services has been limited ‘like never before’.

While 41 per cent of the 4000 surveyed have been unable to access new financial services since Covid-19-restrictions were put in place, two-thirds also said they expect improvements as a result – including 100 per cent digital onboarding of customers.

Signicat’s report ‘The Battle to Onboard 2020: The impact of COVID-19 and beyond’ found that 70 per cent had an account with a digital-first financial provider – and 69 of those considered it to be better than more traditional services.

Those dissatisfied with their lockdown experiences are also more likely than ever to move to a mobile-first account, Signicat found.

Asger Hattel, CEO of Signicat
Asger Hattel, CEO of Signicat

Asger Hattel, CEO, commented that the majority of consumers want the option of banking 100 per cent digitally, “including the initial application and onboarding. Digital onboarding is in fact crucial, as consumers will see it as a preview of the service—a poor user experience will lead to many abandoned applications.”

When asked what they thought of financial service providers that did not allow remote digital onboarding without the need to visit a branch, only 20 per cent were understanding of this limitation, while a third could not see why fully digital onboarding was not possible in 2020.

Two thirds viewed Covid-19 as a catalyst for digital onboarding, however, 14 per cent disagreed, saying that they did not expect providers to be more digital due to the pandemic.

“Our regular research into consumer attitudes around digital onboarding has found that financial services have struggled to keep up with consumer demands in the later years,” Hattel added.

“One of the effects of the pandemic has been to bring this into sharp focus, turning a desire for digital services into a desperate need. Consumers expect to be digital customers which are, according to big banks, 2-3 times more profitable and more loyal than branch-only customers.”

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