Customers that have “better than expected” onboarding experiences are more likely to remain loyal to a brand and acquire more products than consumers suffering from bad experiences.
The finding comes from new research conducted by RegTech Associates on behalf of PassFort, which surveyed 500 UK financial services consumers to have acquired a new financial product in the last 12 months. This survey took place between July and August 2021.
Consumers that had had a poor onboarding experience were more likely than peers to think their provider did little to protect them from financial crime. Furthermore, they were more likely to underestimate penalties providers faced, with 32% believing the company would only get a “slap on the wrist” for compliance failures.
The report also stated that 77% of those with good experiences would recommend their provider to others. The reverse saw just 32% likely to recommend to people.
Those happy with the onboarding were three-times more likely to buy additional products.
PassFort CMO Dr Christine Bailey said, “Against this backdrop, firms cannot afford to view satisfactory delivery as being good enough. There is a very real opportunity for engaging valuable revenue streams and enhancing reputation for those who step up.
“The regulatory landscape is ever changing and incredibly complex, yet we still see an ad hoc approach to regulatory technology across the industry with many firms still relying on heavily manual processes. In the same way we have seen marketing automation revolutionise the marketing function, it’s time to digitise compliance and streamline the entire customer journey.”
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