STOCKHOLM, Sweden—New research reveals 63% of consumers in Europe have abandoned financial applications in the past year.
“Financial institutions must comply with KYC and anti-money-laundering rules, which require the consumer to share personal information. However, identity checking processes are not designed for the digital world, as the Signicat report’s findings reveal,” stated The Paypers in its analysis.
Key findings of the research include:
- Over a quarter (26%) of consumers argue that the onboarding process is “difficult”
- Over a quarter feel the onboarding process is longer than they expected (28%)
- Consumers have been spoiled by the ease of mobile-first financial service providers. Over two-thirds (69%) consider mobile-first providers to be better than more traditional providers
- Consumers are finally refusing to put up with substandard options, as more consumers are now using a mobile-first financial service, up from 30% in 2019 to 47% in 2020. Moreover, only 4% are unhappy with their new mobile-first provider; 69% are happier than before
“Furthermore, the survey findings indicate a growing expectation gap between demographics. Older groups—including Millennials—are more inclined to put up with inadequate onboarding experiences. Whereas Gen Z show little tolerance for anything other than fast digital onboarding,” The Paypers said.
Additional Findings
- Over a third of these younger consumers feel the onboarding process is longer than they expected (36%)
- Just under a quarter of Gen Z customers are abandoning applications due to lengthy processes (24%)
- They are also more likely to be deterred by too much detail (22%), and most likely to simply change their minds (24%)