According to a recent LinkedIn post from Verdata, underwriting and onboarding frictions may be creating significant hidden revenue leakage in financial services. The post contrasts the industry’s focus on fraud losses with the less-discussed cost of declining, delaying, or losing legitimate business due to slow or blunt risk processes.
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The post cites research from Fenergo indicating that 80% of commercial banks lost clients because of inefficient onboarding, framing this as a revenue issue that is often miscategorized purely as a compliance challenge. For investors, the emphasis on optimizing underwriting and onboarding suggests growing demand for technology that can simultaneously reduce fraud, accelerate approvals, and improve customer experience.
If Verdata is positioned to address these pain points, the theme highlighted in the post points to a potentially expanding market for its solutions across fintech, payments, and banking. Better conversion of legitimate applicants and reduced abandonment could translate into higher transaction volumes and stickier client relationships for customers of Verdata’s platform, supporting its growth prospects in risk management and fraud prevention technology.