In today’s fast-paced financial services industry, companies face the challenge of balancing regulatory compliance, user experience, and fraud prevention. As the industry evolves, robust account-opening solutions have never been more critical. In our recent research, Link Index Report for Account Opening in Financial Services, we shed light on the current state of the market and the opportunities it presents.
Striving for Seamless Experiences, Regulatory Compliance, and Fraud Prevention
The financial services industry places a high premium on compliance and fraud prevention, with account opening solutions at the forefront. These solutions are pivotal in verifying new users during customer registration, ensuring adherence to “Know Your Customer” (KYC) checks, a mandatory compliance requirement. Financial services institutions actively seek ways to streamline their operations and enhance security measures; however, a significant pain point lies in relying on multiple vendors to access specific product capabilities or tap into various data sources.
The market demand is clear: enterprises seek comprehensive solutions that seamlessly handle fraud and compliance through a unified platform. While many solution providers are developing capabilities to meet these demands, no single vendor has yet emerged as a dominant player, paving the way for new entrants.
What Buyers Look For
Buyers in the financial services sector are discerning when selecting account opening solutions. They prioritize speed and accuracy, seamless product capabilities, and value for money. As fraud continues to pose a threat, 87% of buyers seek enhanced fraud capabilities as part of their preferred technology.
Though the market offers a plethora of solutions, challenges persist. Buyers often face the burden of in-house manual review, leading to delays and inefficiencies in the account opening process. Additionally, limited comprehensive platform capabilities and regional data gaps present obstacles for buyers and solution providers.
Market Leading Solutions and ROI
Liminal's Link Index Report identified 32 market leaders in compliance and fraud prevention for account opening, offering solutions with the necessary features to meet buyer demands. These market leaders provide strong overall solutions and can deliver a return on investment (ROI) of $3.50 for every dollar invested in a solution provider.
The ROI stems from various factors, including fraud and compliance cost savings, increased revenue due to improved user experience, and savings from automated processes. Comprehensive solutions can lead to a 17% reduction in fraud at account opening and a 17% reduction in abandonment, further enhancing the buyer's value proposition.
Seizing the Buyer Opportunity
While global players and large incumbents hold a significant presence in the market, regional leaders also play a crucial role. Buyers value regional expertise, especially in markets like LATAM, MEA, and APAC, where close-to-source data sets and country-specific expertise offer a competitive edge.
As financial services buyers seek the most effective and comprehensive solutions, market-leading vendors have the opportunity to make a significant impact. Account opening solution providers can attract buyers seeking cutting-edge solutions by addressing challenges, offering seamless compliance and fraud prevention, and demonstrating a strong ROI.
About the Research:
Liminal’s Link Index Report for Account Opening in Financial Services provides in-depth market analysis, identifying market leaders and highlighting opportunities for buyers and vendors. To access the full report and uncover the potential of account opening solutions in financial services, visit our report page and download the executive summary.