Latest News Headlines
Commercial Credit News
|UK banks are losing half of new online account applications due to outdated ID checking processes|
|Wednesday, 11 January 2017|
Identity confirmation provider HooYu today released its Digital Banking Benchmark Report. The report analyses the online account opening performance of five of the UK’s top retail banks to investigate where banks can improve their online account opening processes.
On average, only 53% of online account openings are completed, meaning that 47% of online account opening attempts are left abandoned.
One of the key drivers of abandonment is that the traditional process of name and address checking against credit reference agency databases fails just under a third of online account applications in the UK.
When name and address data checks fail and customers are asked to email or bring their ID documents to a branch it causes a huge hole in the onboarding funnel. Banks are investing heavily in marketing to attract customers to the bank’s site or app, however abandonment in online account opening is causing cost per acquisition to rise.
David Pope, Director of Marketing at HooYu said, “UK retail banks still have a clunky customer journey that kills the momentum of the application when a customer fails the traditional name and address data check. Sometimes the customer is asked to come in-branch or sometimes the bank emails the customer to ask them to return to their site to upload an identity document. Banks should integrate ID document checking and digital footprint analysis into the heart of their online application process so more customers complete and less customers abandon.”
Randolph McFarlane, Head of Partnerships at Intelligent Environments said, “UK retail banks are still too slow to add new KYC technology to cater for the 30% or so of customers that fail the name and address check. Banks need to look for new technology partners so the customer’s identity document and digital footprint can instantly be analysed and verified to support a quicker, smoother account opening process.”
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197