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Banking is digital but on-boarding is still analogue

Consumers really want to sign up to new digital products or services UK banks have to offer, but they're usually discouraged after seeing how long it takes, and what's necessary to sign up for these services.

Those are the results of a new survey conducted by Red Bricks, on behalf of identity assurance provider Signicat. These results, published in the report entitled The Battle to On-Board, say that almost half (40 per cent) of consumers abandon retail bank on-boarding process while applying.

Thirty-nine per cent do so because it takes too much time, and 34 per cent do so because it requires too much personal info.

Moreover, the number of people abandoning the process has increased, from 26 per cent, to 45 per cent since last year.

The report says that banks are forced into such processes as they must comply with Know Your Customer and Anti Money Laundering. Even though the process can be completed digitally for the most part, users are still sometimes required to send proof of identity (either a passport or a driver’s licence) via the post, which can sometimes take days.

“Banking is digital but on-boarding is still analogue. Old-fashioned paper processes equal unhappy consumers, high abandonment rates and lost business for financial institutions,” said Gunnar Nordseth, CEO Signicat.

“With millions of marketing dollars 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?”

“Consumers want to move to a 100 per cent digital process and they want to be able to verify their identity online. Banks must harness existing consumer credentials to instantly on-board and establish a digital relationship for the outset.”