More than half of consumers (68%) abandoned a financial application during the onboarding process in 2021, up from 63% in 2020, research from Signicat claims.
The RegTech company claims this is part of the “expectation paradox”, where, despite improvements in the onboarding process, consumer expectations and abandonment rates are rising.
Its research found that 92% of consumers are concerned about how financial service providers use their data.
Some of the key findings are: 30% of respondents found an application process complicated and 38% abandoned an application because they did not have the right identity documents.
The reasons people abandoned the onboarding process vary. It said, 21% stated it was the time to apply, 21% said it was the amount of information needed and 21% said it was due to them simply changing their mind.
Signicat CEO Asger Hattel said, “A record number of consumers have abandoned financial service applications in the last year which is a wake-up call to the industry. The solution however isn’t simple. While digital identity makes onboarding quicker, this better experience makes for higher expectations from consumers—and increased abandonment if these are not met.
“The key to creating a better onboarding experience is an in-depth knowledge of the market, an understanding of consumer behaviour and the ability to offer multiple onboarding methods.”
The research was based on a survey of 7,600 consumers across Europe, including Belgium, Denmark, Finland, France, Germany, Lithuania, the Netherlands, Norway, Poland, Spain, Sweden, the UK, Estonia and Ukraine.
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