The abandonment rate keeps rising in the financial sector: the real reasons

Over the past five years, the financial sector has been one of the most active in terms of digital transformation investment: new apps, products tailored to different profiles, virtual assistants, and more. However, this acceleration has been accompanied by a growing paradox: the more digitalised the sector becomes, the more users are lost along the way.

The mirage of digitalisation in finance 

T

he myth that “more technology = less friction” doesn’t hold up against current data. What many banks and fintechs have perceived as successful modernisation has led to impersonal, complex or inaccessible processes for a significant portion of the population. 

68% of European consumers have abandoned a digital financial process at least once due to technical barriers or a lack of trust (Signicat). This digital frustration translates into alarming numbers: up to 63% of users abandon the onboarding process if it is too long or complicated (Tecalis). Even more concerning, data gathered by iProUP shows that only between 15% and 35% of users who start an onboarding process in the financial sector complete it successfully. In other words, between 65% and 85% of potential clients are lost along the way. 

These figures not only challenge the effectiveness of current digitalisation efforts — they expose an urgent need to rethink the foundations on which digital onboarding processes in financial services are designed. 

A snapshot of digital abandonment rate in banking and fintech 

The most affected processes are those involving multiple steps and validations, with account opening and card applications leading the list. The more complex the product or the user profile, the more likely the process is to be abandoned. 

The most vulnerable segments include: 

• Young users: often abandon when they encounter friction, delays, or non-mobile-optimised processes. 

• Older people: frequently excluded by inaccessible interfaces, lack of support, or unfamiliarity with digital tools. 

• Self-employed individuals and SMEs: face a disproportionate documentation burden, without proper guidance or tailored validations. 

Abandonment isn’t a marginal or inevitable phenomenon — it is a direct consequence of how current digital flows have been conceived: too rigid, lacking empathy, and more focused on meeting internal requirements than enabling a human and effective experience. 

Why do users really abandon? 

High abandonment rates cannot be explained by technical complexity alone. There are structural and human factors that digital models often fail to address: 

• Lack of support: many onboarding flows are designed as self-guided, linear processes. When users encounter a doubt, error or unclear screen, there is no real-time support — which leads to abandonment. 

• Validation overload: some flows demand multiple documents, photos, signatures or codes without considering the user’s profile. What may be acceptable for a corporate client may be excessive for a student or retiree. 

• Technical language and poor accessibility: legal jargon, unclear instructions or poorly designed menus make it difficult for many users to understand what is being asked. Add to this language barriers or lack of visual and auditory accessibility, and frustration increases. 

• Lack of trust in digital channels: with rising online fraud and phishing, many users drop out when asked for sensitive information without explicit security assurances. Design and communication must inspire trust, not suspicion. 

• Exclusion of diverse user groups: standardised solutions often exclude those who don’t fit the “average digital user” profile. Older adults, migrants without local ID, people with disabilities or a digital divide are left out — even if they are willing to complete the process. 

Shifting the focus: from uniform design to adaptive experience 

A real paradigm shift means accepting that users are not homogeneous — and that digital flows must adapt to different levels of autonomy, technological access and digital confidence. Instead of forcing everyone through the same path, institutions can design adaptive experiences based on the needs detected or declared by the user. 

This means: 

• Designing personalised flows based on customer profile (age, history, channel, device, location). 

• Introducing contextual help points or human intervention when the system detects blockers, uncertainty or inactivity. 

• Offering different levels of complexity: from fast-track flows for returning customers to step-by-step guidance for those who need it. 

• Deploying translation, accessibility and assistance tools to break down language and technology barriers. 

Examples of these approaches include real-time assisted flows, multilingual options, and interfaces adapted to the user’s level of digital fluency. What matters is not the number of features — but rebuilding the logic of digital journeys through empathy. 

Want to explore how to bring these approaches into your financial organisation? Contact the TrustCloud team 

What other sectors are beginning to learn about abandonment rate

While the financial sector remains trapped in highly standardised processes, other industries have begun to rethink how they design their digital experiences. Though none have fully solved it, clear signs of progress point to more flexible, anticipatory, and supportive models. 

• Retail: has incorporated predictive personalisation based on behaviour and profile. Onboarding is segmented and optimised by user type, reducing unnecessary friction. 

• Telecoms: some operators are implementing proactive assistance during sign-up, particularly when drop-off or hesitation is detected — helping reduce churn and improve completion. 

• Digital healthcare: platforms and apps are beginning to adapt interfaces for older users, integrating real-time voice assistance with AI or access to human help when needed. 

• Public sector: in response to the need for universal digital inclusion, hybrid models are emerging — combining online services with assisted support points, simplifying procedures and ensuring no one is excluded due to a lack of digital skills. 

These practices are not yet conclusive — but they signal a direction: digitalisation should not add friction but remove it. And the link between retention and profitability is clear: “A 5% increase in customer retention can lead to an increase in profits of 25% to 95%” (Bain & Company). 

More conversion, less abandonment: redesigning from the user 

Digital transformation in finance cannot stay on the surface. It’s not enough to digitise processes — they must be redesigned around people. Understanding why users abandon, how they behave and what they need at every step is key to improving conversion, trust and business performance. 

Abandonment is not a technical problem — it’s a sign the experience is broken. And like any experience, it can be redesigned. 

Want to explore how to reduce abandonment in your onboarding journey? Contact us