FOR IMMEDIATE RELEASE
Financial institutions have only 14 minutes and 20 seconds to digitally on-board customers
Research from Signicat finds that financial institutions have just over 14 minutes to on-board a customer—a target many are failing to meet
London, 26th September 2019 – Signicat, a pioneer in trusted digital identity, today revealed that on average it takes consumers just 14 minutes and 20 seconds to abandon financial services applications. The findings, taken from Signicat’s Battle to On-board III report, show that financial institutions - including banks, insurers and credit card issuers - are losing more than half of their potential customers (55%) if applications take longer than this to complete.
The third edition of Signicat’s regular study is based on a survey of 3,500 adults across Finland, Germany, the Netherlands, Norway, the UK and Sweden on their on-boarding experience with retail bank accounts, insurance and credit cards.
As financial services becoming increasingly digital, institutions are struggling to keep up with consumer expectations when it comes to applying for financial services. The most common frustration points when applying for a service is the amount of personal information required (31%) and the length of time it takes (28%).
The result is that consumers regularly abandon these applications, and it doesn’t take long to lose most potential customers:
- 12% have abandoned after 5 minutes
- 40% have abandoned after 10 minutes
- 70% have abandoned after 20 minutes
- 86% have abandoned after 30 minutes
- 93% have abandoned after 60 minutes
Given that around one in three (29%) applications take more than 20 minutes to complete, many providers are not meeting this challenge and are losing customers as a result.
To stay competitive and meet this challenge, financial institutions and insurers need to use existing digital identity credentials, like those from eID schemes such as BankID and iDIN or have intelligent document scanning and validation technologies integrated into the offering. Using biometrics is another area for improvement, with 34% of respondents believing providers are not taking full enough advantage of biometric data to speed up the onboarding process.
“Competition from challenger banks and fintechs is moving the benchmark for success when it comes to on-boarding. More than half of potential customers are now abandoning applications after 14 minutes and 20 seconds, not very much time to get all the KYC information required. Providers are wasting thousands of marketing pounds and euros just to get customers to the on-boarding stage only to lose them,” said John Erik Setsass, VP of Identity and Innovation at Signicat. “Financial service providers need to explore new technologies, especially digital identity, to meet this challenge—those that do will win the battle to on-board.”
Based in Trondheim, Norway, and founded in 2007, Signicat operates the largest digital identity hub in the world, offering the only complete identity platform in the market, trusted to reduce the burden of compliance in highly regulated industries. With Signicat, institutions can build and leverage existing customer credentials to connect users, devices and even ‘things’ across channels, services and markets transforming identity into an asset rather than a burden. By ditching manual, paper-based processes and replacing them with digital identity assurance, customer on-boarding is accelerated and access to services is made simple and secure. Signicat has over 800 financial services and other organisations as clients, connects to more than 25 schemes globally.