KYC challenge: Negative Customer Onboarding Experience
Know Your Customer (KYC) has turned out to be a lot more burdensome and costly than anyone in the financial services industry could possibly have anticipated when the first Anti-Money Laundering regulations came into force. Based on our in-depth knowledge of the financial services industry and our ongoing dialogue with existing and potential CoorpID customers, we have identified multiple KYC challenges that financial institutions (FIs) are facing today. One of them is: Negative Customer Onboarding Experience.
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Negative Customer Onboarding Experience
Due to KYC requirements and inefficient KYC processes, customer onboarding can take a lot longer than customers normally would expect – an average onboarding process for a new corporate customer can take up to 100 days – resulting in a negative customer experience and, in some cases, loss of business. According to a Thomson Reuters survey on KYC regulations, 89% of corporate customers qualify their KYC experience as negative—so much so that 13% actually switched to another financial institution as a result.
We have identified five KYC challenges that Financial Institutions are facing today. If you work for a Financial Institution, do our KYC Challenges Quick Scan and gain insight into how your organisation is dealing with these challenges.
A positive onboarding experience is extremely important as a customer’s onboarding experience sets the tone for all future interactions between the customer and the Financial Institution (FI). In addition, a lengthy customer onboarding process also means higher costs and a longer time-to-revenue. FIs that succeed in optimising their customers’ end-to-end onboarding experience will be able to increase the portion of new customers receiving approval, raise customer satisfaction scores, and reduce onboarding operating costs. The challenge that FIs are facing now is to transform customer onboarding from a paint point into a competitive differentiator and a revenue driver.
Interested in understanding more about the KYC challenges banks and financials institutions face? Download our whitepaper.