Banks lose out as half of online banking applications fail

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Jumio has launched new research that benchmarks high street banks in their approach to digital account opening.

The research report is based on interviews with eight leading high street

An infograph of Number of bank branches in the UK
Number of bank branches in the UK

banks which analyse and benchmark online account opening processes and technologies as banks and wider financial services attempt to reduce the volume of over-the-counter transactions.

The common theme to all the banks interviewed is that despite the shared desire of banks and customers to move to online banking and money management, old-fashioned customer verification procedures mean that almost half (48.75%) of those who attempt to open a bank account online do not complete the process.

a chart showing Online bank account opening attempts in 2014
Online bank account opening attempts in 2014

The banks interviewed cited a high percentage of non-matches to credit reference agency verification databases and instances where customers are required to visit a branch to have their ID document verified, turning what could be an easy intuitive digital experience into a chore.

“What we are seeing can be put down to banks not being able to translate traditional in-branch verification practices such as seeing customer ID documents, to the digital banking environment,” says David Pope, Director of Marketing EMEA at Jumio.

“Jumio’s computer vision technology enables banks’ would-be customers to hold their ID document to their device camera so their data is instantly read and populated into the account creation process and their ID document is seamlessly authenticated against a range of security features.”

A chart showing Average time taken to open a bank account online (2014)
Average time taken to open a bank account online (2014)

 

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