A survey undertaken by NorthRow (now part of ID-Pal), the leading Know Your Customer/Business (KYC/B) and Identity & Verification (IDV) platform, revealed that one in five Know Your Customer onboarding checks takes more than 24 hours to complete.
The survey asked compliance professionals to share their views on the challenges ahead in 2023, along with emerging trends and priorities across the profession.
Although around half of respondents said a standard KYC check takes on average 1–2 hours, 20% said some checks take more than 24 hours to complete. Long onboarding times increase the risk of customer abandonment, which can create unnecessary cost for compliance teams and the wider business.
This kind of delay can also create clear frustration for customers, especially those who need fast access to financial services.
The survey also found that fewer than a quarter of respondents were prioritising customer experience improvements in the year ahead, despite the impact of long onboarding times. If KYC checks remain slow and cumbersome, firms risk losing customers and revenue.
Other notable findings included:
- 40% rely on office productivity software such as Word and Excel for regulatory compliance processes
- The average onboarding success rate is 80%, with some reporting rates as low as 50%
- 25% of revenue is being spent on compliance costs
Customers expect near-instant onboarding when accessing new services. Long KYC checking times can not only result in lost business for companies, but customers becoming dissatisfied and switching to competitors offering faster and more efficient services.”
The survey also explored how compliance is perceived within businesses, and the extent to which technology is being used across the profession. To read the full report, click here.
