Why is a process of financial onboarding abandoned?

Investing thousands and thousands of euros in marketing and communication campaigns to bring in new clients and then losing a large part of them in the registry process is the nightmare of any company.

The percentages of abandonment are not reduced in practically any sector, but the causes of abandonment are different, as shown by the recent The Battle to On-Board study.

The 1st figure is already significant: 40% of consumers abandon the financial onboarding process. Although a 60% conversion may seem high in comparison with other sectors, in the financial sector the indices of abandonment in a registry process are generally lower.

Therefore the area to be improved is the online experience, and to do this it is key to understand why consumers abandon an onboarding process.

Principal cause of abandonment: the process is too long

One out of every three abandonments, 39%, are due to the length of the onboarding process. The average length of a process of this kind is 18.45 minutes, although the consumers’ experience is radically different in the different bands: for processes lasting between 0 and 5 minutes, the experience is positive; after 10 minutes the experience begins to become neutral, and for processes lasting more than 20 minutes, it becomes progressively negative and frustrating.

This does not include the time used in taking the documents for physical identification to the financial subsidiary.

The two factors which generate most frustration in online onboarding are the amount of personal information required and the time needed to complete the forms, which is probably where the consumer has the conception of spending more time.

Consumers generally want 100% online onboarding

Today, few onboarding processes are 100% online, most require going to the entity’s physical branch to confirm the identity and present the identification documents.

Many consumers say they have a good experience when they have to go to the physical branch due to the personal treatment they receive, but the experience is generally qualified as frustrating and difficult due to the queues, the opening hours and the fact that it is impossible to complete the process 100% online.

Although 97% of users have access to valid identification documents in the onboarding process, they often lack the technology to perform valid document authentication and identity verification.

Online identity verification increases conversion in the onboarding process

And not only conversion in the registry process; 55% of consumers are more prepared to contract additional services if no face-to-face physical identification is required.

The online identity verification systems therefore become a strategic element, as they allow one to move on to a 100% online onboarding process while fulfilling KYC regulations, and speed up the process while maintaining security standards.

Consumers are more and more demanding in this sense, as shown by the fact that in 2015, the onboarding process abandonment ratio went from 26% to 45%. The key: to give up off-line processes and to move on to 100% online processes that are fast, agile and efficient.