Corporate treasurers frustrated by outdated bank onboarding methods

Nearly nine in ten corporate treasurers have abandoned banking applications due to extended and inefficient onboarding processes, according to recent research from Encompass Corporation, a leader in Corporate Digital Identity (CDI).

The survey, conducted by independent polling agency Censuswide, found that 87% of corporate treasurers in the UK and US stopped banking applications owing to cumbersome onboarding procedures. Additionally, 86% reported that their businesses lost revenue as a direct consequence of these inefficiencies.

Encompass’s survey questioned 250 corporate treasurers about their experiences with banking processes, particularly focusing on Know Your Customer (KYC) onboarding practices, customer outreach, and overall customer experience. Findings revealed a substantial dissatisfaction rate, with 73% of respondents expressing discontent with their bank’s KYC process. The figure was notably higher in the UK at 80%, compared to 66% in the US.

Alex Ford, President of North America at Encompass Corporation, commented: “Banks are the backbone of thriving modern economies, but these results show that archaic approaches to core business activities are having a detrimental impact on many companies.”

“Fundamental activities, such as client onboarding, are overly reliant on manual processes and physical documents, with disjointed and cumbersome client experiences damaging trust and reputation. We know that customers are no longer prepared to accept a level of service that falls below their expectations, so banks simply cannot afford to become complacent or take this trust for granted,” Ford added.

To address these issues, Ford emphasised the need for banks to adopt CDI. “It is crucial that they leverage CDI, taking advantage of this technology-led approach that combines corporate information with public and private data sources to verify and validate identity with speed and ease. The potential benefits, as customer experience is at the forefront, are huge,” she said.

Ford further noted that adopting CDI would not only minimise the number of customer abandonments but also support and boost future growth by enhancing data quality and operational efficiency. “In reducing repetitive and lengthy onboarding and outreach, as well as improving the quality of the data gathered, customers will experience the journey and service they are looking for, while banks find a level of efficiency that, ultimately, will help them to increase revenue,” she explained.

The survey shed light on ongoing inefficiencies, revealing that 93% of respondents had been asked by a bank for the same information multiple times, with 56% encountering repeated requests for identical details. It also highlighted that, on average, it takes businesses 41 days to open a new banking account, a statistic consistent across both UK and US markets.

Wayne Johnson, co-founder and CEO of Encompass Corporation, remarked: “Friction during outreach is an issue that has been plaguing banks for decades, slowing down the process and preventing them from onboarding a higher volume of customers.”

“Using CDI to create digital identities quickly and accurately for every customer enables easier verification and faster, better data sharing, greatly surpassing previous human-led approaches. CDI is the future of our industry, and it is time for banks to embrace it,” Johnson concluded.