FullCircl has just published its latest report, revealing critical insights into the state of IDV that could be costing businesses a significant number of potential customers annually.
According to the “2025 State of Identity Verification Report,” an estimated 38% of potential new customers are lost due to existing gaps in knowledge and missed opportunities in customer onboarding processes.
The report, which is based on a survey of over 1,000 consumers and 464 compliance professionals across various regulated industries in the UK, highlights that the average onboarding time of 35 minutes is nearly three times longer than customer preferences, leading to a high abandonment rate. A staggering 38% of customers have given up on opening accounts, a figure much higher than the mere 2% anticipated by businesses. This misjudgment underscores a significant oversight in customer retention strategies.
Andrew Yates, CEO at FullCircl, emphasized the ongoing struggle regulated industries face in balancing regulatory compliance with customer satisfaction. “One of the biggest onboarding challenges facing regulated businesses right now is how to successfully walk the tightrope between customer experience and regulatory compliance,” Yates said. “Unfortunately, it’s clear from our report that too many organisations still approach these as mutually exclusive issues.”
The study also reveals that 59% of businesses still depend on entirely or mostly manual IDV processes, which not only increases the onboarding time but also reduces customer satisfaction and profitability. Despite this, there’s a silver lining as the report indicates potential for significant improvement. A more sophisticated approach to IDV could reduce acquisition costs while improving both the customer experience and compliance with regulations.
In conclusion, the findings from FullCircl’s report provide a critical perspective for businesses looking to refine their identity verification strategies and capitalize on the opportunities for enhanced customer engagement and profitability.
Find the report here.
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