Nearly three quarters (73 per cent) of businesses are more likely to select a bank that could perform all relevant regulatory checks digitally, according to new research.

A Censuswide survey of 200 decision-makers in large and medium-sized UK companies for RegTech software provider Encompass Corporation found that 57 per cent of businesses are still with a bank that requires some paper-based documentation for onboarding processes.

In the context of the shift to digital services due to COVID-19, 64 per cent agreed that the implementation of social distancing measures has exposed the digital divide between traditional banks and specialist FinTechs.

More than a third of respondents (37 per cent) admitted that their current banking provider’s onboarding process is too slow or not fit for purpose, while 44 per cent said that the process of opening a business bank account is no longer in line with their expectations.

A majority (58 per cent) also agreed that ‘innovation’ is a key differentiator when choosing a banking partner.

However, more than half of business decision-makers (56 per cent) did say their bank has noticeably improved other aspects of its digital services since the start of the outbreak - including online consultations and transactions.

Wayne Johnson, chief executive and co-founder of Encompass Corporation, said: “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.”

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