Compliance expert HooYu has published a new report that looks into the KYC onboarding and drop-out rate in the UK and non-UK markets.
HooYu Looks into UK Onboarding and Drop-Out Rates in the UK
A new report by HooYu has looked into the rate of customer retention operators experience as a result of advertising and bonus funnels in light of rigorous Know Your Customer (KYC) checks. The report estimates that the average sign-up KYC success rate for the United Kingdom is 86%, with large operators reporting the highest number, with 92.5%.
Surprisingly, the report shows that medium operators post a lower rate at 82.5% than small operators with 84.2%. The logic here is that customers may be more inclined to give a new product a shot, hence the higher conversion rate and willingness to stick through the KYC process.
With the national average at 86%, though, this means that 14% of potential customers in the country are still an untapped market. These are individuals who are willing to play but find the KYC compliance procedure too pesky to complete.
HooYu has worked out solutions that allow operators to simplify the KYC journey in the United Kingdom and lead to better overall onboarding.
KYC and Onboarding Outside the UK
Interestingly, the United Kingdom has one of the highest onboarding worldwide, with operators outside the UK struggling to retain customers with the same rate of success. The average operator posts 70% in retention rates, but this percentage is lower for small operators with 65% and medium operators with 68.3%.
Large operators again do comparatively well with 75% onboarding success. Part of that may be owing to the fact that they are well-established brands and generally known names to the public. Part of customer reluctance to onboard may be due to the lengthy procedure that KYC processes take.
How Long Does It Take to Go Through KYC
In the United Kingdom, for example, the average onboarding process takes 11 minutes.
Large operators onboard customers through KYC in 11:21 minutes, but small operators take 17:30 minutes. Interestingly, medium operators need only 6:37 minutes on average to complete a KYC process.
How come medium operators have a worse overall onboarding rate than small operators. The UK, though, is still a great place for KYC compliance. Outside the country, the rate goes up drastically.
Only 20% of all operators HooYu reviewed managed to complete onboarding in 30-60 minutes. Another 50% took up to half a day, which is still fairly quick, and then again another 30% took up a whole day.
Why Do Customers Bail on KYC?
Interestingly, HooYu went deeper, examining each aspect of the compliance process for both UK and non-UK customers and established what percentage of people dropped out and where.
For proof of ID, the drop-out rate was 20% (UK) and 40% (non-UK), proof of address was 20% (UK) and 34% (non-UK), and proof of source of funds was 35% for both UK and non-UK customers.