The questions banks need to ask when signing up new customers
Digital technology makes it unprecedentedly easy to win new customers – or lose them forever. Modern consumers now expect a sophisticated, streamlined experience when signing up for any online service. Which is an opportunity for banks with well-designed onboarding processes, as well as a trap for those which fail to offer prospective clients a clear, effective and engaging journey.
During the pandemic, millions of people around the world started banking online – many of them for the first time. In the UK alone, an estimated six million people switched to online banking during the first month of lockdown. In the US, 35% of respondents to a poll said they were now using online banking more than before.
Research from the digital identity firm Signicat suggests that individual banks are losing up an estimated €5.7 billion each year due to poor onboarding, with 63% of Europeans reporting that they abandoned a bank sign-up process in the past year. This is the worst figure since its research began in 2016 and an increase of 23% from 2020.
It’s time for all banks to focus on onboarding, whether they’re challengers or neobanks stepping up to meet the demands of digital-first customers or venerable institutions undergoing digital transformation.
To help you work out if your onboarding process is shipshape or sinking fast, we’ve set out five questions you should be asking about signing up new customers.