A growing number of bank customers are abandoning the account opening process, raising concerns about lost revenue and customer frustration. Research shows that more than 70 percent of applicants fail to complete the process, highlighting inefficiencies in digital onboarding and the need for banks to take back control of the customer journey.
Friction points in account opening
The main reasons for abandonment include lengthy forms, excessive documentation, confusing identity verification steps, and slow approval times. Customers often abandon applications midway when they encounter complex requirements or experience technical glitches on mobile and web platforms.
Digital transformation and user experience
Banks that streamline digital onboarding with user-friendly interfaces, instant verification, and minimal documentation see higher completion rates. Incorporating technologies like e-KYC, biometric verification, and automated compliance checks can significantly reduce friction and accelerate account activation.
Re-engaging abandoned prospects
Financial institutions are adopting strategies to re-engage customers who abandon applications. Automated reminders, progress-saving features, and personalised follow-ups encourage users to return and complete the process. Educating customers about the benefits of completing account setup, such as faster transactions or better offers, also improves engagement.
Balancing security and convenience
While convenience is crucial, banks must maintain robust security measures to protect sensitive information. Achieving the right balance between security, compliance, and user experience is key to reducing drop-offs and safeguarding trust.
The path forward
Experts recommend that banks analyse drop-off points, simplify the onboarding process, and invest in seamless digital solutions. By taking back control of the customer journey, institutions can convert potential losses into long-term relationships, improve operational efficiency, and enhance customer satisfaction.
REFH – Newshub, 19 August 2025
Recent Comments