38 percent of UK businesses have deliberately abandoned an application for banking services in the last year due to ‘slow due diligence processes’, according to new research from Encompass Corporation, the Know Your Customer and regulatory technology (RegTech) specialist.
The survey, which polled 200 business decision-makers in large and medium-sized businesses, was conducted between Wednesday 18th March and Thursday 19th of March, just after the Chancellor announced a £330bn rescue package due to support UK companies through the Covid-19 crisis. The research asked businesses about the challenges they face in getting access to financial support, as well as attitudes towards cybersecurity and regulation.
In addition, the polling found that businesses plan to prioritize spending on cybersecurity over anti-financial crime compliance in 2020, with 44 percent putting plans in place. However, a large 81 percent of organizations agree that they are confident in their understanding of exposure to financial crime and that they already have the processes in place to address it.
According to the polling results, 44 percent of companies said they did not regularly put customers and suppliers through formal Know Your Customer (KYC) processes. Additionally, 60 percent admitted that there has been no training for staff about how to be compliant with the Fifth Money Laundering Directive (5MLD).
Meanwhile, nearly one-third of businesses (29 percent) said they now trust challenger brands and fintech providers more than traditional banks.