COVID-19 & onboarding: 63% of Europeans abandon digital bank apps

Gen Z has become financially active and simply won’t tolerate a poor onboarding experience

onboarding

COVID-19 & onboarding: 63% of Europeans abandon digital bank apps. Source: unsplash.com

Signicat, a digital identity provider company, reported that 2020 has been a bad year for service providers, with the most impact on the onboarding process.

With most of the businesses inclining towards online and remote management now more than ever, consumers are having a hard time trusting the onboarding process.

The financial service providers had already been lacking behind and struggling to provide quality to their consumers even before the COVID-19 pandemic. Thus, with the pandemic, when digitalization has become the only option for many, these services are failing miserably in providing the customers what they need.

And the most crucial area where the providers are failing to provide satisfactory results is onboarding. Around 63% of Europeans were reported to have abandoned digital bank applications in 2020, more than ever before. It has been doubled since 2019 in the wake of COVID-19. Norway was the country with the highest percentage of abandonment of around 70% and Belgium reported 53% abandonment, the lowest of all.

Digital and remote services are no longer a premium bonus. It has become an essential requirement by seven out of ten consumers which expect the services provider to provide 100% digital onboarding in the wake of this pandemic. The turnaround has been 32% if the consumer is required in any form to take ID credentials physically to a branch.

The reports also suggested that 40% of the population aged between 18-24 years considered their last financial application to be anything but easy. Since Gen Z is considered the digital generation, it is now more important than ever to gain their trust and attention as most of them are economically active and potential consumers.

It was reported that only 47% of Gen Z in Europe trusted their bank identity to log in to other online services if they were able to do so, which is significantly lower than among 45-57 years olds which is 75%.

We’ve reported that Barclays is launching a 12-week accelerator program for 25 Black founder-led tech businesses. The launch features acclaimed photographer Misan Harriman, the first Black male cover photographer for British Vogue, and Oscar-nominated filmmaker Cornelius Walker.

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