Research – Why 4 in 10 businesses abandon banking applications?

A research by Scottish fintech Encompass shows that almost 40% of UK businesses have deliberately stopped an application for banking services in 2019 due to ‘slow due diligence processes’.

200 companies took part in this survey which tool place after the Chancellor of the Exchequer announced a £330bn rescue package to help UK companies through the Coronavirus situation.The results also show that companies plan to prioritise spending on cybersecurity over anti-financial crime compliance. Indeed, over 80% of firms said they were confident in their understanding of exposure to financial crime with the appropriate processes being implemented.

However, when looking at the data, just over 40% of them said they did not regularly put customers and suppliers through formal KYC processes and 60% of them hadn't trained their collaborators on how to be compliant with the Fifth Money Laundering Directive (5MLD)

You can read the full research and more here.