87% of corporate treasurers have abandoned banking applications for their business due to lengthy and inefficient onboarding processes.
It is not just banks losing customers. Data released by Encompass Corporation reveals that 86% of treasurers also highlighted that their businesses had lost revenue as a direct consequence of a bank’s slow and disjointed approach to acquiring customer information.
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The research commissioned by Encompass assessed treasurers’ attitudes to banking processes and experiences of accessing financial products and services. Questions crossed areas including Know Your Customer (KYC) onboarding practices, customer outreach and experience.
Overall, three-quarters (73%) admit to being dissatisfied with their bank’s KYC process. This figure rises to 80% in the UK, in comparison to 66% in the US.
Corporate digital identity: combining corporate information with public and private data sources
Alex Ford, President, North America, Encompass Corporation, said: “Banks are the backbone of thriving modern economies. But these results show that archaic approaches to core business activities are having a detrimental impact on many companies.
“Fundamental activities, such as client onboarding, are overly reliant on manual processes and physical documents. This disjointed and cumbersome client experience damages trust and reputation. We know that customers are no longer prepared to accept a level of service that falls below their expectations. So, banks simply cannot afford to become complacent or take this trust for granted.
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By GlobalData“Moving forward, it is crucial that they leverage CDI. Taking advantage of this technology-led approach combines corporate information with public and private data sources to verify and validate identity with speed and ease. The potential benefits, as customer experience is at the forefront, are huge.
“Not only will adopting CDI reduce the number of abandonments that we see. But crucially, banks’ future growth will be supported and boosted. In reducing repetitive and lengthy onboarding and outreach, as well as improving the quality of the data gathered, customers will experience the journey and service they are looking for. Banks will find a level of efficiency that, ultimately, will help them to increase revenue.”
41 days: the average time taken to open a business account in US, UK
The survey reveals that 93% of respondents have been asked by a bank for the same information multiple times. Some 56% had to deal with requests for the same details on several occasions. This shines a light on the inefficiency of existing processes. In addition, the research disclosed that, on average, it takes businesses 41 days to open a new banking account. This statistic is almost identical across UK and US markets.
