KYC delays hindering customer onboarding; new data shows 1 in 5 checks take longer than 24 hours
By Lauren Davison, Compliance expert and Marketing Executive at Northrow
A recent survey by NorthRow, the leading Know Your Customer/Business (KYC/B) and Identity & Verification (ID&V) platform, revealed that one in five onboarding checks takes over 24 hours to complete.
The survey invited compliance professionals to provide insight into the challenges ahead in 2023 and emerging trends and priorities in the profession.
Although around half of the respondents found that a standard KYC check takes 1-2 hours on average, 20% admitted that some take over 24 hours to complete. As a result, abandonment rates will likely increase with poor onboarding experiences, which could be costly to compliance teams and the more significant business.
This prolonged process can cause significant inconvenience and frustration for customers, particularly those needing financial services urgently.
The survey also found that less than a quarter of respondents prioritise improving customer experience in the year ahead, despite long onboarding times. Companies risk losing customers and business if KYC checks remain time-consuming and tedious.
Other notable findings include:
- 40% rely on office productivity software such as Word and Excel for their regulatory compliance processes
- The average onboarding success rate is 80% (some as low as 50%)
- 25% of revenue is being spent on compliance costs
On the findings, the CEO of NorthRow, Andrew Doyle, said: “There is great importance in undertaking KYC checks as part of the onboarding process, yet our research has found the time taken to complete simple KYC checks can be a significant challenge for customers.
In 2023, customers expect near-instant onboarding when accessing new services. Long KYC checking times can result in lost business for companies and customers becoming dissatisfied and switching to competitors offering faster and more efficient services.”
