PH
IND
ID
Every business dreams of a smooth digital onboarding experience, one where a user signs up easily, verifies their identity, and becomes a customer in minutes. However, the reality is very different.
Across industries, from banks and insurance to fintech and e-commerce, many users don’t complete sign-ups. In fact, research shows that nine out of every ten companies experience customer abandonment during the digital onboarding process. That means a huge number of potential customers start the journey, but don’t finish it at all.
If your business is losing customers before they become customers, you’re not alone. In this article, we’ll break down why customers abandon digital onboarding, highlight the digital onboarding challenges that frustrate users, explain how branch-visit vs digital onboarding differ in user perception, and point to solutions that build trust and keep customers engaged, especially for Filipino users navigating a rapidly digitalising marketplace.
What Is Digital Onboarding and Why It Matters
Digital onboarding is the online process through which a customer signs up for a service, verifies their identity, provides required documents, and becomes ready to use the product. Unlike traditional onboarding, where people may need to physically visit a branch, digital onboarding should be fast, intuitive, and friction-free.
Think about it: in the Philippines today, mobile adoption is strong, and many users prefer signing up from their phones while sipping coffee at home rather than going to a branch in traffic. However, when digital onboarding isn’t smooth, many users simply quit rather than finish it.
Digital Onboarding Challenges That Make Users Quit
So, what exactly drives users away midway? Here are the most common digital onboarding challenges based on verified trends and industry reports:
Lengthy and Complex Processes
One of the top reasons customers quit is because the digital onboarding feels too long and complicated. In the global ABBYY Intelligent Automation report, nearly 29% of abandonment reasons were tied to onboarding being too long , with identity proofing being a key pain point.
Users today expect quick, seamless experiences, especially on mobile. When they are asked to fill multiple forms, upload several documents, or repeat the same information, patience runs out fast.
Cumbersome Identity Steps
Identity verification is often where users get stuck. Too many manual steps, unclear instructions, or cumbersome photo uploads can make a process feel like a chore instead of a convenience.
This challenge reflects an underlying tension: the need to securely verify identity (to prevent fraud) versus the user’s desire for a frictionless experience. If that balance isn’t right, customers will abandon the process before finishing.
Lack of Clear Communication
Sometimes users don’t understand why they are being asked for certain details. If there’s no clear progress indicator or explanation of what’s required and why, users lose patience, especially younger, mobile-first audiences who want simplicity.
Missing Human Support Options
Although automation is a key part of modern onboarding, too much automation without any human support can make people feel stuck, especially when they encounter errors or don’t understand what’s next. In the same industry research, almost a quarter of customers cited “missing a human element” as a reason they drop out.
This is one digital onboarding challenge that gets overlooked. Automation speeds things up, but without any backup support, customers feel alone when they’re confused.
Technical Frustration and Trust Issues
Errors during document uploads, camera issues, or unclear verification messages add to frustration. Worse, if customers don’t trust the security of the process, especially when sharing personal data, they simply quit.
Why Customers Prefer Branch Banking
Traditionally, signing up for financial services in the Philippines meant visiting a branch, filling out paper forms, standing in queues, and presenting physical IDs. It was time-consuming, but the presence of a relationship manager (RM) or bank officer provided reassurance and guidance.
Digital onboarding promised to remove that friction. Customers could apply anytime, anywhere, without travel or waiting. But when digital onboarding challenges surface, confusing forms, repeated document uploads, failed verifications, customers often retreat to what feels safer: a branch visit. For many, especially older or less tech-confident users, human assistance still equals trust.
The real shift, however, is not just about replacing branches with apps. It is about digitizing the branch experience itself. Forward-looking institutions are enabling kiosk-based onboarding, RM-assisted digital journeys, and tablet-enabled verifications inside branches. Customers still receive human support, but the process runs on secure, real-time digital rails.
The goal is not branch-visit vs digital onboarding. It is about blending both. When digital journeys feel as guided, transparent, and supportive as a trusted branch representative, customers no longer have to choose between convenience and confidence.
The Real Impact of Abandonment
The consequences of poor onboarding go beyond technical problems. They hit the bottom line:
52% of abandonment is tied to engagement and customer experience issues.
Companies believe that reducing the abandonment rate by just half could increase customer acquisition by nearly 29% and revenue by 26%.
This means that a smoother onboarding not only helps customers but also significantly boosts a company’s growth and profitability.
Why Trust Matters in Onboarding
At the heart of all these digital onboarding challenges is trust, or the lack of it. When customers feel unsure about what’s being asked of them, fear misuse of personal data, or are confused by identity verification steps, they abandon the process.
Trust matters because it transforms a chore into a confidence-building experience. For Filipino users, who are increasingly conscious about data privacy and security, there’s a strong preference for transparent, respectful verification processes.
Trust in onboarding isn’t just about security checks; it’s about explaining why information is needed, keeping communication clear, and reassuring users that their sensitive data is handled safely.
When onboarding feels secure and supportive, completion rates go up, and so does customer loyalty.
How IDfy Is Helping Solve Digital Onboarding Challenges
At IDfy, we understand these challenges deeply. We see onboarding not as a form to complete, but as the first meaningful interaction between a customer and a brand.
Here’s how we’re helping businesses tackle digital onboarding challenges and build trust from the start:
Smart Identity Verification With Clarity
We use robust identity checks that are fast, secure, and easy to understand. Customers don’t feel confused or overwhelmed.
Reduced Manual Steps
By leveraging intelligent automation, we minimise data entry fatigue and reduce repetitive steps that often lead users to quit.
Better Communication and Guidance
Clear progress indicators, helpful prompts, and an explanation of why certain details are needed help users feel informed, not lost.
The Human-Tech Balance
While automation speeds things up, we ensure there are touchpoints where users can get help, so they never feel stuck or unsupported.
In doing this, IDfy doesn’t just reduce digital onboarding challenges; we build confidence and trust so that users are far less likely to abandon the process.
Conclusion
Digital onboarding isn’t just a technical workflow. It’s an emotional and cognitive experience, one where users decide whether they want to continue their journey or leave it halfway.
When onboarding is long, confusing, or feels insecure, users abandon it, and many never come back. But when onboarding is seamless, clear, and trustworthy, the result is more than just a completed signup: it’s a new customer who feels confident, loyal, and ready to engage
If your business is grappling with digital onboarding challenges and wants to create an onboarding experience that users don’t abandon, let’s talk. Reach out to us at emily@idfy.com . We’d love to help you build onboarding that converts and delights.
