Many Brits are abandoning signing up for a new account halfway through the process, leaving businesses with lost revenue opportunities.
A new report from Onfido argues that asking for too much information, and not communicating clearly how that information will be used and protected, makes consumers fearful and makes them pull back before completing the signup process.
Its “Customer attitudes to digital identity: meet the expectations of tomorrow” survey, based on a poll of 4,000 respondents in the United Kingdom, United States, France and Germany, finds that more than four in ten Brits abandoned signing up for a new account or service when asked to do so.
They did so, first and foremost, because of the information they had been asked to provide. Address history, date of birth and government ID information is seen by consumers as both inconvenient (32 percent) and insecure (29 percent).
Besides asking for too much information, consumers are also worried about the data being passed on to third parties (53 percent), and not being properly guarded (52 percent).
If businesses want to minimize signup abandonement, and increase trust among consumers, they should go for biometric checks, the report claims. Four in five (80 percent) of respondents said they trust businesses that use document and biometric checks, compared to those who use other methods (67 percent).
For Brits, using a photo of a government ID and taking a selfie with a mobile device is a convenient way to create an online account. They would love to see more businesses in financial services, the travel industry, accomodation, and vehicle renting, implementing these types of verifications.
“We are not surprised that Covid lockdowns would increase the use of online accounts, but the rate of abandonment during account sign up due to security and privacy concerns was surprising to us,” said Robert Humphrey, Chief Marketing Officer and Strategist for Onfido. “This shines a light on an opportunity for UK businesses to provide a more seamless, user-friendly process, while still engaging strong identity verification in order to improve account onboarding and authentication.”