Banks making the same mistakes with digital transformation

UK tech boss warns that banks must stop repeating common errors if they are to meet their digital goals

CAMBRIDGE, England, Oct. 27, 2023 /PRNewswire/ -- Zenoo CEO Stuart Watkins has warned that banks are repeating the same mistakes in digital transformation at a crucial time for the industry.

Companies like TransUnion, Experian and Refinitiv have Zenoo's platform embedded in their service offering and CEO Watkins is warning that many banks are still failing in three essential key areas by failing to understand evolving customer expectations; failing to use local expertise to navigate different markets and their particular customer expectations; and failing to adequately communicate the necessity of collecting extensive customer information - leading to mistrust and application abandonment.

At the forefront of these three key issues is the onboarding process which represents every new customer's first full digital interaction with the bank.

Watkins says: "The primary problem banks will face if they get digital transformation wrong is the potential loss of customers and market share. Consumers are becoming more willing to switch providers if they encounter friction in the onboarding process and we know the industry has a major issue with abandonment rates. Banks must ensure that the digital onboarding process is user-friendly, efficient, and effectively communicates the necessity of data collection. The whole process has to be efficient and straightforward for customers."

Integration with existing electronic identification methods and offering customers choices for identification are also essential components of success as banking has a unique regulatory environment with compliance requirements, especially in the context of KYC (Know Your Customer) and AML (Anti Money Laundering) regulations, demanding thorough identity and background checks.

This all results in a more complex and data-intensive onboarding process compared to many other industries.

Watkins adds: "Consumer expectations for digital experiences in banking are exceptionally high, necessitating a delicate balance between innovation and compliance. Banking has to get this right and right now."

About Zenoo

Zenoo specialises in the remote onboarding of customers for international companies to help them improve their conversion rates, breaking down barriers and making it easier for their customers to open accounts online.

Visit partner.zenoo.com for further information.

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Contact Bruce Ackland on +44 7884 076548 or email backland@wavelengthgroup.com