Innovation doesn't just help streamline the operational side of compliance, it can also transform the user experience. And this is a concept challenger banks in particular have put front of mind.
Recalling her time as Head of Financial Crime at Monzo, Vernier says they tried to implement regulations in ways "that make it easier for customers and give them a really great experience while being cheaper for us and more effective.
This mindset has given challenger banks one of their biggest competitive advantages. The Battle To Onboard
, a study of consumer behaviour in Finland, Germany, the Netherlands, Norway, the UK, and Sweden, found that financial services applications have a 38% abandonment rate. And the most common reason for abandonment is that the process is perceived as being too hard.
But while compliance is often scapegoated for poor customer experience, the truth is that, with innovation, you can comply and
make things easier for customers. The key is to try and think outside the box.