KYC under pressure: Why 84% of corporate clients are now dissatisfied with their bank’s process

For many corporate treasurers, 2025 is proving to be a turning point.

Despite years of investment in digital transformation, Know Your Customer (KYC) processes remain a persistent source of frustration. While banks may believe they are improving efficiency, the reality felt by corporate clients often tells a different story.

At Encompass, we recently completed our second annual survey of 250 corporate treasurers across the UK and US, and the findings are hard to ignore. Clients are growing increasingly dissatisfied, and they are taking action.

The frustration is growing, and so is the risk

The KYC process is no longer just a regulatory hurdle. It is now a defining moment in the client experience. And when that experience disappoints, the consequences go far beyond compliance.

While some may expect incremental improvement year-on-year, our data shows a different trend. In 2025, dissatisfaction levels are climbing, and frustration is affecting not just perceptions, but behavior.

From repeat document requests to protracted onboarding cycles, corporate clients are signalling a loss of patience. And, in many cases, they’re prepared to walk.

The cost of poor onboarding is real for corporate treasurers

KYC delays are not just slowing things down, they are slowing growth. Corporate clients are reporting lost time, missed opportunities, and, in some cases, abandoning banking relationships altogether.

The commercial impact is clear. When onboarding takes too long or feels disorganized, businesses act. Traditional processes, reliant on manual work, siloed systems, and repeated outreach, simply cannot keep up with client expectations in a digital-first world.

Sensitive data, outdated channels

Despite the push for digital maturity, many banks still rely on email or even paper to exchange sensitive KYC information. Corporate clients are rightly concerned about the security and efficiency of these methods, and our survey shows those concerns are intensifying.

Portals and platforms are part of the solution, but they are not yet widespread enough. Until secure, seamless data-sharing becomes the norm, banks will continue to face skepticism from their most important clients.

The path forward: From fragmented to future-ready

The message is clear: Banks must reimagine how KYC is delivered.

That does not mean ripping out existing systems or starting from scratch. But it does mean moving away from fragmented, repetitive processes and towards automation-led strategies underpinned by Corporate Digital Identity (CDI).

CDI represents a powerful shift. From static, one-time data collection to a dynamic, reusable digital profile of a corporate entity. By combining public and private data, verified documentation, and intelligent automation, CDI offers a scalable, secure foundation for end-to-end KYC.

CDI is more than a compliance tool, it is a competitive advantage

Banks that adopt CDI can transform onboarding into a strategic differentiator. Faster time-to-revenue, lower operational costs, better customer experiences. It is all possible when KYC becomes smart, seamless, and connected.

Discover the full picture

There is much more to explore. Including insights from treasurers on what they want most from their banking partners, the biggest KYC pain points, and how leading institutions are responding.

Download the full research report to uncover the data, challenges, and opportunities shaping the future of corporate banking: