NOTTINGHAM, U.K.—A new study reveals that one in two people are frustrated by lengthy application processes when applying for a new financial product or service.
According to new research by Experian, a lengthy application process is the number one frustration felt by over half (51%) of U.K. adults applying for financial products and services.
The research has found that being asked to provide further information or documents in addition to those already provided during the initial application process (42%) was also a key frustration, with over a fifth (22%) stating they would abandon an application if asked to do this.
The research, which looked at the top frustrations causing consumers to pull out of an application, found that two-fifths (40%) of adults were deterred by a long application form, stopping them from completing the application altogether.
Waiting too long for the application form or payment to be processed is also enough to cause more than a third (34%) to abandon the process. “The number-one reason, however, for actually abandoning an application was poor customer service and poorly designed customer technology (46%),” Experian explained.
“The latest research highlights the challenges faced by financial services providers when it comes to online transactions,” said Nick Mothershaw, director of fraud and identity solutions at Experian. “Many organizations have processes in place to protect their customers, for example from the threat of fraud when making online transactions. However, these processes can have a big impact on the customer journey, leaving many unhappy with the service they are getting. When applications take longer, this is usually due to identity verification measures that are there to protect both the business as well as customer from fraud.”
Mothershaw said the increase in the use of online and mobile channels rather than face-to-face interaction has made identity checks a vital part of the process.
“With increasing competition in the financial services industry, a faster more streamlined identity verification process, where the identity can be electronically verified and supporting documents are validated immediately online, is the only way forward for providers, otherwise they risk losing their customers,” he said.