Key takeaways (TL;DR)
A poorly designed KYC flow can cut conversions by up to 40%.
Friction doesn’t come from regulation—it comes from the user experience.
AI and automation can reduce verification time to seconds.
Didit turns KYC into a growth engine, not a roadblock.
Picture this: a user downloads your finance app, jumps into sign-up with excitement… and never finishes onboarding. They drop off halfway.
As counterintuitive as it seems, this is normal: 60%–70% of users abandon sign-up when KYC (Know Your Customer) feels too long or complex.
For a fintech or finance app, these drop-offs aren’t just numbers—they’re missed customers, wasted CAC, and revenue that never lands. In short, your KYC flow determines how much you grow, not just whether you comply.
Which raises the key question: what hidden friction in your verification flow is costing you conversions—and how do you fix it?
In this article, you’ll find exactly that: the most common mistakes that crush conversion, the metrics you should track, and the strategies to turn compliance into a growth asset, not a brake.
When someone fails to finish verification, it’s not just an incomplete form—it’s a potential customer who will never use your product. This directly hits core metrics like:
The data backs it up: multiple studies put financial onboarding abandonment above 60% when KYC is slow or confusing.
Recent analyses identify the identity verification step—document capture or biometrics—as the highest-drop-off stage.
In other words, your funnel fails right when you think you’ve already won.
Your KYC conversion rate is a foundational metric. It’s calculated as: Users who complete verification ÷ Users who start the KYC flow.
This ratio shows how much friction your process creates. The higher it is, the more you can monetize and retain.
With this metric in hand and a well-instrumented funnel, you’ll know exactly where users drop and can optimize with surgical precision.
After reviewing hundreds of identity verification flows and tens of thousands of KYC processes on our platform, we’ve identified the most frequent issues behind fintech and financial platform abandonment:
Many product and growth teams track global conversion, CAC, or churn, but overlook KYC conversion and its critical drivers.
These are the metrics that truly define the health of your financial onboarding:
Yes—it’s absolutely possible to streamline identity verification without putting compliance at risk.
Here are the five levers that make the difference:
Strong KYC doesn’t just protect—it sells. It’s where trust, technology, and experience meet.
Designing an efficient flow isn’t about being laxer; it’s about being smarter: asking for the right thing, at the right time, with minimal friction. The difference between a 40% and a 70% conversion rate isn’t always marketing—it’s how you built verification.
With Didit, you can verify identities in seconds, cut unnecessary steps, and stay fully compliant thanks to our free, unlimited identity verification plan, flexible and adaptable to your needs, with premium features that can save up to 70% versus traditional providers. A fast, well-designed KYC isn’t a dream—it’s a real competitive edge.