European FIs losing applicants during digital onboarding – Signicat report

Monday 3 June 2019 10:25 CET | News

38% of all financial services applications in Europe are abandoned despite massive investment in digital transformation by institutions, according to a report from Signicat.

Although the 38% figure is an improvement on 2018’s high of 52%, it means that abandonment rates have returned to nearly the same level as 2016 (40%), the identity provider company continues.

When digitally onboarding customers, institutions are required to comply with Know Your Customer (KYC) and Anti Money Laundering (AML) requirements. This requires personal information to be shared, and identity to be proven. 

The ease with which consumers can complete an application mirrors the rate of abandonment. In 2016 13% of applications were said to be somewhere between difficult and painful, a number that leapt to 32% just two years later. In 2019, consumers feel while the application process has improved, it hasn’t quite made it back to 2016 levels, with 24% saying that onboarding is difficult to complete or worse.

Nevertheless, the results showed that banks remain the most trusted institution to create and maintain the best solution to onboarding woes—reusable digital identity schemes. The report shows that almost half (44%) of consumers trust banks to manage their digital identity. Government schemes come in at a distant second at 25%, while retailers and social media platforms aren’t really trusted, only chosen by 3% and 2% of respondents respectively.

The third edition of Signicat’s study The Battle to On-board III is based on a survey of 3,500 adults across Finland, Germany, the Netherlands, Norway, the UK and Sweden about their digital on-boarding experience with retail bank accounts, credit cards and insurance.

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Keywords: Signicat, Europe, FIS, onboarding, digital onboarding, customer experience, trust, technology, report, digital identity, digital identity scheme
Countries: World