Record numbers of European consumers abandoned during financial applications

  • In 2020, 63% to 68% of customers abandoned a financial application
  • It highlights the “expectation paradox” where, despite improvements in the onboarding process, consumer expectations and abandonment rates continue to rise.
  • 92% of customers are concerned about how financial services providers use their data

Tronheim, Norway, 30 March 2022: Signicat, the trusted digital identity company, today released new research showing that 68% of consumers in Europe abandoned financial applications last year. The results for financial service providers are the worst since the Battle to Onboard Report debuted in 2016, with abandonment rates steadily rising over the past five years.

CEO headshot

CEO headshot

The fifth edition of Signiket’s regular report, The Battle to Onboard: The Growing Power of Consumer Demands, is based on 7,600 consumers across Europe, including Belgium, Denmark, Finland, France, Germany, Lithuania, the Netherlands, Norway, and Poland. Spain, Sweden, United Kingdom, Estonia and Ukraine. Consumers were asked to report their experiences and expectations of onboarding financial services last year.

Financial service providers must comply with the Know Your Customer (KYC) and Anti Money Laundering (AML) rules for which they must access and verify a consumer’s personal information. Unfortunately, often identity verification processes are not designed for digital, do not take into account the subtleties of the local market and create a poor user experience for the customer.

Key searches include:

  • Application is easy: Nearly one-third (30%) of respondents said they found the application process “complicated”.
  • The speed of abandonment: The average time a customer typically leaves an online application for a financial product was 18 minutes and 53 seconds. This is seven minutes faster than the average 26 minutes left for a consumer in 2020.
  • Reason for leaving: At the time of application (21%), amount of personal information required (21%) and change of mind (21%) are the main reasons why applications are rejected.
  • The importance of the onboarding approach: 38% of respondents report dropping an application for a financial product because they do not have a valid identity card, such as a passport or digital identity.

Interestingly, the study found a “expectation paradox” when comparing markets. Countries that have easy and fast onboarding experience বাদ thanks to digital identity schemes like BankID — are certainly not the happiest consumers who are less likely to abandon an application. In fact, consumers in the “more mature” digital identity market were more in demand, less likely to suffer bad experiences, and in some cases more likely to abandon an application than the “less mature” market.

The report further states that:

  • 92% of customers are concerned about how financial services providers are using and caring for their data, thanks to a lack of understanding of why this data is needed.
  • Assumptions about different countries are dangerous — new identity technologies are not universally popular in every country, although digital identity schemes are closest to this norm.
  • Covid is still affecting access to services. 42% of respondents found that they were unable to access vital financial services because they were either unavailable or digitally unavailable – very little since 2020.

“Last year, a record number of consumer financial services applications were abandoned, a wake-up call for the industry. The solution, however, is not easy. While digital identity speeds up onboarding, this good experience creates high expectations from customers এবং and if these are not met, abandonment increases, ”says Signer CEO Eger Hettel. “The key to creating a good onboarding experience is deep knowledge of the market, understanding of consumer behavior and the ability to offer multiple onboarding approaches.”

The report is available in Battle to Onboard 2022: The Growing Power of Consumer Demands.

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Method
Conducted by Signicat, the survey was conducted by Sapio Research and consisted of a complete online questionnaire by 7,600 adults in Belgium, Denmark, Finland, France, Germany, Lithuania, the Netherlands, Norway who applied for financial products last year. , Poland, Spain, Sweden, United Kingdom, Estonia and Ukraine

About Signicat
Signicat is a pioneering, pan-European digital identity company with an unparalleled track record in the world’s most advanced digital identity market. Its digital identity platform incorporates the world’s most comprehensive identity proofing and authentication systems, accessible through a single integration point. The platform supports full identity journeys, from recognition and on-boarding, to login and consent, to business deals that stand the test of time. Signicat was founded in 2006 and was acquired in 2019 by Nordic Capital, a leading European private equity investor. It is headquartered in Tronheim, Norway.

For more information about Signicat, please visit www.signicat.com.

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