Abandon(ment) hope

As interest rates continue to rise, so too do abandonment rates.By creating a better customer experience, you can cut those rates while protecting your business from fraud

Consumer finance has had a rocky start this year. The cost of personal loans continued to rise – albeit at a slower pace compared to previous months – with average rates for £10,000 personal loans nudging up to 6.02 per cent in January from 6.01 per cent a month earlier. In January 2022 rates stood at 3.94 per cent. While this increased rate might seem like good news for loan companies, it has caused a slowdown in the number of loan applications being made.

And that’s made worse by the increase in abandonment rates for digital loan applications. Forbes reports that abandonment rates of fintech applications are rising with customers becoming dissatisfied with digital financial products, especially during onboarding.

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Successfully verifying and onboarding new customers can be a tricky process – but it’s needed now more than ever. The banking industry experienced a 1,318% year-on-year surge in cybersecurity attacks in the first half of 2021 alone. The last thing you need when trying to win new customers is wasting time on fraudulent ones

APLYiD can help you minimise your abandonment rates and eliminate fraud at the same time – for companies both large and small.

Take Convera (formerly Western Union) – one of the world’s largest non-bank FinTechs in global B2B payments, with capabilities in over 140 currencies across more than 200 countries and territories and 60 global banking partners.

We provided Biometric ID verification: a faster, simpler, better onboarding process for the business and its clients. Convera and APLYiD are now integrating the technology into Convera’s internal systems like Salesforce.

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APLYiD’s technology in Convera’s business has helped the business reach and maintain a 100% compliance record, meeting all its Anti-Money Laundering requirements. And the company has also seen a 100% drop in successful fraudulent applications.

As Forbes says: “AML and KYC are essential to any financial product… but many fintech and traditional finance brands continue to use outdated means to verify the information. Aside from getting the right technology to do this and ensuring the minimum documents required are present, brands should be aware of how this process is presented to the client to make it as user-friendly as possible.”

That’s where APLYiD comes in. To find out more about what we do and how we do it, click here.