8 out of 10 consumers prefer full digital banking experience. However, users are very concerned with data storage and hacking – study.
Banks continue to see strong levels of customer acquisition via digital channels; 42% registered for an account via an app, 35% via website, Onfido survey shows.
Onfido, an Entrust company, announced the results of the End-User Expectations of Digital Identity Report, exploring the growing preference among consumers for digital-first services – both online and in-person, and the non-negotiables of the user journey.
The survey found that users have a strong appetite for digital services, with 81% saying they access services online daily. Specifically, more than 8 in 10 (82%) respondents access online banking services always or mostly online. Yet, in the last year, some have been prevented from doing so, with more than one in four (26%) banking customers unable to access online services, double the number of any other industry.
The appetite for the digital banking experience is not confined to online services either. The survey finds that users seek the benefits of digital within in-person banking, too. In fact, 8 in 10 users would opt for digital processes that help speed up in-person services and waiting times.
Digital vs. in-person service preferences
During the COVID-19 pandemic, physical restrictions forced many businesses to meet users online, and in turn, they have become accustomed to digital-first environments. This is particularly true when it comes to setting up new accounts. Across industries, users are equally split between setting up accounts via an app (40%) and setting up accounts online (40%). But industries such as investment and trading (46%), gaming (44%) and banking (42%) are leading the way when it comes to app usage.
End-users are more likely to choose a digital-first option to open a bank account, manage investments or make a money transfer. However, for services that might involve more considered decisions or financial advice, such as lending and mortgages, users are more inclined to want an in-store element in addition to online services. Over 2 in 5 (44%) said they prefer an in-store experience when signing up to lending platforms.
However, there is a third preference for end-users: in-person services enhanced by digital processes. The research shows that users are embracing digital processes to speed up services in other industries, for example, to help them skip queues when checking into a hotel (82%) or renting a vehicle (76%). Banks and other financial institutions must now match these wider expectations for frictionless journeys, removing points of disruption, like a slow-moving line, if they are to boost user satisfaction.
User expectations and non-negotiables
Despite high demand for digital access, businesses still have a lot of room for improvement in customer onboarding. Across industries, more than 1 in 5 (22%) consumers abandoned signing up for a new account in the last year because it either took too long (37%) or was too confusing (35%). Speed and convenience are non-negotiables for younger generations, with almost one in three (31%) people aged between 18 to 24 abandoning sign-ups, with the top reason being because it took too long (44%).
With 77% of those who have registered for new accounts within the last 12 months having done so through digital means, like an app or website, businesses simply cannot afford to short-change customers on the online experience and risk losing new customers.
The survey shows that remote verification has changed the face of onboarding and is consumers’ preferred choice to prove their identity when signing up for digital services. Users find digital identity verification both secure (81%) and convenient (88%), highlighting that security and convenience can, and should, go hand in hand.
However, users are concerned with data storage and hacking. 85% worry that someone could hack into their accounts, 83% worry about how their data is used and 82% worry about how it’s stored.
How to improve verification experiences
1- Change the conversation around UX and compliance
Too often, UX, compliance, and fraud prevention are seen as competing business priorities. Nowhere does that competition come to a head more so than onboarding. It’s easy to see why. 1 in 5 end users abandons the account sign-up, 1 in every 10 users falls victim to fraud, and regulatory hoops can seem endless. Product, Compliance & Risk, and Fraud teams, all have different metrics to monitor and different business priorities to meet.
But onboarding flows present an opportunity. Businesses should look to use onboarding as a way to open up and change the conversation. Instead of viewing UX, fraud, and compliance as competing
priorities, instead, use it as an opportunity to define the business goals.
2 – Tailor onboarding experiences for different users
In the past, businesses have adopted a one- size-fits-all approach to onboarding. Today, no two end-users are the same, so why should their experiences be identical? As the data shows, different ages and users based in different locations have different expectations regarding onboarding experiences. Plus, local regulations often dictate slightly different regulatory requirements.
Striking a balance between compliance and UX starts with understanding which end-users your business is comfortable funneling through low- friction ‘happy paths’, and which require additional assessment.
3 – Leverage no-code orchestration tools
To tailor onboarding experiences for different users, businesses will need to manage multiple onboarding flows. Businesses should lean into orchestration platforms to prevent this from becoming a resource intensive, operational nightmare for internal teams. No-code drag-and-drop workflow builders reduce the lift for onboarding teams when building out new workflows, or making changes to existing ones.
4 – Optimize the UI of onboarding experiences
Most users are used to digital-first onboarding experiences. But without a well-thought-out UI, digital isn’t necessarily better. Businesses and identity verification providers have a responsibility to create an experience that anybody can get through without difficulty. This benefits both the user, who’ll have a great experience, and the business, who’ll see less drop-off.
Users appreciate transparency, so businesses should take steps to explain the process during onboarding. Identity verification providers should design the digital process for the real world, for example, including real-time feedback and accessibility features.
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The survey was conducted with 6,000 respondents split equally between the US, Canada, UK, France, Italy, and Spain. More information is available upon request.
Download the End-User Expectations of Digital Identity Report here.
