Consumer Frustration with Financial Application Processes
by Alexander Beard, on May 11, 2015 8:45:06 AM
New research from Experian has revealed key factors driving people to pull out of an application for a financial product or service. A lengthy application process is the number one frustration felt by over half (51 per cent) of UK adults applying for financial products and services, according to new research by Experian, the global information services company. The research, which looks at the top frustrations causing customers to pull out of an application, found that two fifths (40 per cent) of adults were deterred by the length and complexity of the application form, putting them off completing the application altogether.
Published recently, the research has also found that being asked to provide further information or documents in addition to those already provided during the initial application process (42 per cent) was also a key frustration, with over a fifth (22 per cent) stating they would abandon an application if asked to do this. Waiting too long for the application form or payment to be processed is also enough to cause more than a third (34 per cent) to abandon the process. The number one reason, however, for actually abandoning an application was poor customer service and poorly designed customer technology (46 per cent).
Nick Mothershaw, Director of Fraud and Identity Solutions at Experian, comments:
“The latest research highlights the challenges faced by financial services providers when it comes to online transactions. Many organisations have processes in place to protect their customers, for example from the threat of fraud, when making online transactions. However, these processes can have a big impact on the customer journey, leaving many unhappy with the service they are getting. When applications take longer, this is usually due to identity verification measures that are there to protect both the business as well as customer from fraud”.
”The increase in the use of online and mobile channels rather than face to face interaction has made identity checks a vital part of the process. With increasing competition in the financial services industry, a faster more streamlined identity verification process, where the identity can be electronically verified and supporting documents are validated immediately online, is the only way forward for providers, otherwise they risk losing their customers.”