If your total conversion rate is hovering around 60%, you are losing significant revenue due to deficient technical processes.
Based on market data, our decade of experience, and real-world use cases, these are the exact friction points where your users abandon the process:
1. The Capture Funnel: Identity Verification (Onboarding)
This is the phase where the user interacts with the camera to verify their document and identity.
Most Fintechs lose legions of users—and thousands of euros—due to technical details that seem minor but turn this step into a tedious task. Let’s break them down:
- Abandonment Before Starting (Permissions and Browsers).
- Permission Blocks: Many users deny camera access out of mistrust or by mistake. If the system cannot re-request permission with a clear, accessible explanation, the user is left staring at a black screen and leaves.
- WebView and Incompatibility: If a user opens your process from a social media browser (like Instagram or WhatsApp) or an outdated mobile browser, the camera often fails to activate.
- The ID Capture Process (Front and Back)
- Lack of Real-Time Guidance: Users often don’t know the correct distance for their ID. If the software doesn’t say “Move closer” or “Too much light,” the user attempts the photo, fails, and abandons after three tries.
- Enemy #1: Glare: Document plastic is shiny. Mediocre software allows captures with glare that obscures critical data (toggling support numbers or birth dates). The user thinks they did well, but the system will reject them later.
- Behavioral Drop-off: If the process takes more than 30 seconds to recognize the document, the user gets distracted or decides to “do it later.” That user rarely returns.
- Biometrics (Selfie and Liveness)
- Complex Backgrounds: If the user takes a selfie with people behind them or a busy background, and the technology cannot isolate the face, it triggers an error.
- Complex Liveness Motions: Asking users for unintuitive gestures—like repeated blinking, specific head tilts, or following moving dots—is a leading cause of abandonment. If the system fails to detect these “unfamiliar” movements on the first try, the user perceives it as an insurmountable technical barrier.
2. The Validation Funnel: The Back-Office Black Box
Once the capture is finished, validation technology takes over. This stage depends on the KYC platform’s ability to process data quickly and securely. In an efficient system, 96.5% of users should be successfully validated. If your conversion drops here, it is due to:
- Avoidable Technical Rejections
- Low Image Quality: This is a major culprit. If you allowed the user to send a blurry photo in the previous step, you must reject it here, wasting time and resources.
- Fraud False Positives: Overly strict liveness algorithms that mistake a poor connection or an old camera for a spoofing attempt. You end up treating legitimate customers like criminals.
- Data Cleaning Errors
- Expired Documents: It seems obvious, but if the system doesn’t warn the user during capture that their ID has expired, they reach the end of the funnel only to be rejected hours later by a human.
- Unsupported Documents: Users attempting to register with a driver’s license when your policy only accepts Passports/National IDs.
- Back-Office Collapse
- Human Dependency: If your technology cannot automatically approve at least 95% of users, you have a bottleneck.
- Fatal Wait Times: A Fintech user expects immediacy. If a case is “Pending Review” for more than 10 minutes, the chances of them ever funding the account plummet.
High Conversion Without Sacrificing Security
Most companies believe increasing security requires more steps. Data proves the opposite: efficiency comes from removing technical obstacles.
Technical Note: The following data is derived from weekly analyses conducted for leading Fintech companies in Europe and the Americas, where drop-off causes are monitored and resolved through weekly client consultations.
Real-Time Assistance (Smart Capture)
The system guides the user to prevent failure. If there is low light or glare, the software warns them before they snap the photo. This allows 98.2% of users to capture their ID correctly on the first try.
Passive Biometric Validation
We use passive biometrics to maintain a 96.5% validation success rate. The system confirms the user is a real person without requiring awkward gestures; the process flows while the technology blocks spoofing, presentation, or injection attacks in the background.
The Success of “Auto-Onboarding” (Approval in Seconds)
The most powerful metric is that 95% of users are approved automatically. No back-office waiting, full legal certainty, and immediate operation for the customer.
The Maximum Funnel: Omnichannel Presence
To reach the conversion ceiling, an App-only process isn’t enough. Your customers are everywhere: web browsers, WhatsApp, or WebViews within social media (Meta). Integrating agile solutions in these channels captures the user at their moment of peak intent. Every channel where you are absent is a lost sale.
Robust Technology Powered by Experts
Technology alone doesn’t reach 90% conversion by magic. The real difference is the Customer Success team behind it. Excellence requires continuous improvement based on real data. Expert advisors in funnel analysis and fraud patterns allow you to:
- Identify specific leak points unique to your business.
- Fine-tune validation criteria to minimize false rejections.
- Constantly scale conversion, turning technical details into a competitive advantage.
Conclusion: It’s Not Just Software, It’s Operational Strategy
Optimizing capture and validation isn’t a “set and forget” project. It is a living strategy combining channel ubiquity (Web, WebView, Native) with expert auditing. Only then can the 24% of potential customers you are losing today turn into permanent revenue.
Want us to audit your funnel?
At Veridas, we don’t just deliver technology; our experts analyze every stage with you to eliminate friction and maximize your ROI. If you’re ready to scale your conversion to the next level, let’s talk.
