Encompass Corporation‘s recent research has uncovered alarming statistics regarding corporate treasurers’ dissatisfaction with banking applications.
According to the study, a staggering 87 per cent of corporate treasurers have abandoned banking applications due to the lengthy and inefficient onboarding processes. Notably, this trend isn’t just affecting banks but also impacting businesses, with 86 per cent of treasurers reporting revenue loss directly linked to banks’ slow and disjointed approach to acquiring customer information.
The findings, obtained through a survey conducted by Encompass in collaboration with independent polling agency Censuswide, involved 250 corporate treasurers across the UK and US. The survey delved into various aspects of banking processes, including Know Your Customer (KYC) onboarding practices, customer outreach, and overall experiences with financial products and services.
One of the standout revelations is the dissatisfaction among treasurers with their bank’s KYC process, with 73 per cent expressing discontent. This figure is even higher in the UK, where 80 per cent of respondents are dissatisfied compared to 66 per cent in the US.
Alex Ford, President of North America at Encompass Corporation, highlighted the impact of outdated banking practices on modern economies. “Banks are the backbone of thriving modern economies, but these results show that archaic approaches to core business activities are having a detrimental impact on many companies,” Ford said.
Ford emphasized the urgent need for banks to leverage Corporate Digital Identity (CDI) technology to streamline client onboarding processes. She stressed that CDI, which combines corporate information with public and private data sources, can significantly enhance verification and validation processes, ultimately improving customer experience and boosting banks’ future growth.
The research also shed light on the inefficiency of existing banking processes, with 93 per cent of respondents reporting being asked for the same information multiple times by banks. Furthermore, 56 per cent had to deal with repeated requests for identical details. On average, it takes businesses 41 days to open a new banking account, highlighting the need for expedited and efficient onboarding procedures.
Wayne Johnson, co-founder and CEO of Encompass Corporation, underscored the role of CDI in revolutionizing the banking industry. “Friction during outreach is an issue that has been plaguing banks for decades, slowing down the process and preventing them from onboarding a higher volume of customers,” Johnson stated.
He urged banks to embrace CDI as the future of the industry, enabling quicker verification and data sharing, thus surpassing previous human-led approaches.
These findings emphasize the pressing need for banks to modernize their onboarding processes to meet evolving customer expectations and enhance operational efficiency.
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