Consumers say online account creation process can make or break their relationship with digital services, but less than half are satisfied

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Trulioo survey reveals demand for digital identity verification must deliver both speed and security to ensure a smooth start of the customer relationship.

Trulioo Consumer Account Opening Report 2020

"First impressions are even more important in a digital environment where switching providers is only one click away.” - Zac Cohen, COO at Trulioo.

Over two-thirds (73%) of consumers claim that the account opening process can ‘make or break’ their relationship with digital services. A new report published today by Trulioo, the leading global identity verification provider, reveals that people are becoming increasingly intolerant of poor online account creation experiences and over three-quarters (77%) indicate they will switch to other sites if met with a less than optimal experience.

This intolerance is expressed by younger and older consumers alike in the U.S. and the UK, across all types of digital services. In the financial services industry, less than half (43%) of consumers are fully satisfied with their recent experiences opening new online accounts, one-third (37%) of online shoppers are fully satisfied with their experiences when opening new online accounts with retailers, and 44% of consumers are fully satisfied with their experiences opening new accounts across online marketplaces.

Consumers hold strong views on what makes a first-rate account opening process and the ability of a service provider to deliver a positive first impression at the onset of a customer relationship is crucial to a brand's success and maintaining brand loyalty. Consumer concerns about online security are higher within financial services than in any other sector, with more than half of respondents (51%) reporting that they are ‘very concerned’ about identity theft when using financial services sites.

“In such a competitive environment where consumers have infinite options online, businesses need to ensure they are providing consumers with a fast and seamless digital experience without placing their security and identity at risk,” said Zac Cohen, COO of Trulioo. “The digital experience starts with the account creation process. First impressions are even more important in a digital environment where switching providers is only one click away.”

As people sign up for an increasing number of digital services, expectations for smooth and seamless account creation are also rising. The new report, “Consumer Account Opening Report 2020”, highlights consumer behaviors and expectations around security, digital onboarding and identity verification in the financial services, retail and online marketplace sectors.

In financial services:

  • 90% of customers cite security as a very important part of an optimal account creation experience, far ahead of flexibility (60%) and seamlessness (58%)
  • 90% believe that online financial services providers have a responsibility to reduce cyber-crime through whatever identity verification is necessary, the highest across industries
  • When a financial services firm uses real-time identity verification as part of their account creation process, more than 80% are less likely to abandon, 84% will have greater trust in the brand and 71% are more likely to share more personal data

In retail:

  • 90% of online shoppers cite security as a very important part of an optimal account creation experience, far ahead of flexibility (59%) and seamlessness (59%)
  • Almost 90% of online shoppers say they are concerned about identity theft when using retail sites and feel safer when sites ask to verify their identity
  • When an online retailer uses real-time identity verification, 85% of online shoppers are less likely to abandon a site, 80% feel more valued as a customer and 78% are more likely to spend more time and money on a site

In online marketplaces:

  • 90% of users cite security as a very important part of an optimal account creation experience, far ahead of flexibility (59%) and seamlessness (59%)
  • 58% of consumers regard online marketplaces as riskier than other types of online services and the same proportion (58%) claim to be worried about security and the potential for fraud when transacting on online marketplaces
  • When an online marketplace uses real-time identity verification, 85% of consumers are less likely to abandon a site, 83% will have greater trust in the brand and 81% are more likely to say positive things about the brand to others

Consumers see clear benefits in online services providing real-time identity verification as part of a fast and seamless account creation process. Despite the ongoing quest for ever-faster customer experiences, most people (62%) report that they prefer a slower account creation process with more rigorous identity verification to protect them against risks, over a faster process with fewer identity checks.

“Consumers live in a real-time world where they can transfer money, shop for a new couch or book accommodations halfway around the world with one click, and they want the account creation process to be as secure and intuitive as the rest of the customer experience,” said Cohen. “Achieving the right balance for each customer segment is key -- for financial services, retail, online marketplaces and more. Those businesses that can onboard customers in an optimized way will set the landscape to forge stronger, more trusted customer relationships.”

To download the report, visit “Consumer Account Opening Report 2020”

To download the infographic, visit click here.

About Trulioo
Trulioo is a global identity and business verification company that provides secure access to reliable, independent and trusted data sources worldwide to instantly verify consumers and business entities online. Trulioo’s bank-grade online verification platform, GlobalGateway, helps organizations comply with Anti-Money Laundering (AML) and Customer Due Diligence (CDD) requirements by automating Know Your Customer (KYC) and Know Your Business(KYB) workflows. Trulioo supports global clients to instantly verify 5 billion people and 330 million business entities in over 100 countries — all through a single API integration. Named as a CNBC Disruptor 50 Company, the Trulioo mission is to solve global problems associated with verifying identities by powering fraud prevention and compliance systems for customers worldwide in an effort to increase trust and safety online. For more information visit trulioo.com.

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Kim Hong
Trulioo
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