Digital regulatory checks win business
A new survey by Encompass shows traditional banking methods are losing out.
Banks that employ digital regulatory checks are winning new business, says research by Encompass. Data collected revealed 73% of companies were more likely to seek services from banks that could perform digital regulatory checks.
More than 200 high level executives took part in the UK based survey, which also found that 57% of companies still work with providers still using banks that provide paper documents, in order to conform with compliance regulations.
However, since the beginning of the pandemic, a massive 64% of those surveyed, agreed that old fashioned physical banking was no longer favourable, and that digital banking, which does not require social distancing or the cleaning of premises, was more practical.
This view supports the growing popularity of Neo and Challenger banks, which have mushroomed in number, particularly in the Far East, since 2010.
Speed was another factor in the switch to digital banking. The process of opening a bank account, as well as transaction time and a lack of ‘innovation’ were remarked upon by 37% of respondents. However, many also commented on the fact their banking services had improved since the COVID-19 pandemic, due to essential services all being managed online.
CEO and co-founder of Encompass, Wayne Johnson, explains, “The COVID-19 pandemic has permanently altered the way that businesses interact with their banking and financial services providers, increasing the need for online services and resulting in expectations of a much faster approach to onboarding and compliance checks. Sticking with slow, paper-based processes for critical tasks such as Know Your Customer (KYC) checks will, in many cases, no longer be tolerated, especially with customers clearly expecting the highest standards of digital services from their provider.”
He adds; “The time has come for banks to fully embrace automated, smart decision-making, enabling seamless compliance with changing regulation, which will reduce costs and improve customer service for the long-term.”