Open banking platform TrueLayer has launched the UK’s first-ever automated onboarding service using open banking APIs, the company has announced.
Signup+ is expected to streamline the onboarding process by combining account creation with making a payment whilst using bank-sourced data to quickly verify a customer’s name, address and date of birth.
According to TrueLayer this will speed up KYC-compliant onboarding so customers can start using services instantly. Following one quick deposit from a user’s online bank, during signup, this could mean adding funds to a wealth management app or trading crypto, for example.
Businesses who have already signed up to use the product include Remitise, Tiger Brokers, PayItMonthly and StakeMate.
Speaking on the announcement Adebayo Familusi, CEO at Remitise Limited, said: “Traditionally, the onboarding process often involves manual, time-consuming tasks such as gathering and verifying personal information, conducting identity checks and establishing proof of address. By obtaining customer data sourced from their bank Signup+ will streamline the onboarding process and save time and resources for our company and our customers.”
A key aim of the service is to solve inefficient account signup and registration processes that often plague businesses with required verification for onboarding new customers, causing high drop off rates.
Four in ten people start the process of creating an online account for a service, but never complete signup while 46% of individuals drop off when they are asked to submit information in response to a verification request. That is according to a new YouGov research commissioned by TrueLayer, which was released on January 31.
It also found that three quarters of customers are only willing to spend 10 minutes or less on signup before giving up.
As part of Signup+ bank authentication is built into each payment along with real-time identity data checks to reduce the threat of payment and identity fraud.
Francesco Simoneschi, CEO & Co-Founder at TrueLayer, added, “In financial services and beyond, clunky and inefficient signup processes lead to as much as 40% of potential revenues being lost.
“Using open banking technology in conjunction with real time identity data, Signup+ automates the onboarding process in a way which hasn’t been possible before in the UK. Signup+ represents a new generation of use cases for open banking and brings onboarding to the forefront of the conversation about where open banking is headed in the future.”
