How Can Fintech Companies Enhance Customer Experience?
Only for several years, the Financial Technology industry has turned from a small innovative direction into a global multi-billion dollar market. The growth of Fintech has become one of the most talked-about events of our time.
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Here I would like to share some of my beliefs and reasoning about it, emphasizing the importance of building high-quality customer support and its influence on the success of the Fintech business market sector. To be maximally objective in this post, I will be based not only on my own observations and experience but also on the worldwide statistics and attached examples.
A Fintech brand-new approach
Fintech companies are flooding businesses with innovative ideas and new technologies, changing the entire financial sector for the better. The Fintech industry is ready to offer a full range of financial services, which was previously only possible for banking organizations.
Should banks be wary of the Fintech boom? – Definitely, yes, they should! Digitalization brings significant benefits. Banks are aware of this, as well as the fact that Fintech companies are gradually gaining a share of the market in the traditional banking sector.
Here I believe in the competent synergy of modern banks and technology companies. That is what I can call a successful partnership.
It can provide advanced digital services and create new outlooks for customers. Furthermore, it influences the dynamics of changes in revenue and costs associated with existing and emerging services.
The evolution of Neo banks and BigTech companies (such as Apple, Facebook, or Amazon) in the financial service market has fundamentally changed customer expectations. Giving the example, Generation Y consumers (born between 1983 and 2002) are already accustomed to receiving highly personalized real-time services that match their dynamic lifestyles. Such a format is long-time offered by Fintech companies. Plus, Fintech startups are currently an integral part of hipster culture (like Starbucks coffee shops or Uber taxis).
That is just a smattering of a big number of illustrations of the Fintech influence. It brought me to the thought the new generation would definitely give preference to Fintech companies. Their tremendous opportunities for the clients are over the traditional financial organizations.
Yes, there is always a downside. For several companies that have cheated, there is a decrease in trust in Fintech organizations. It’s enough to remember the recent accounting scandal around German financial services provider Wirecard. The company turned out to be a great extent of smoke and mirrors on the market. After all, it one more time proves the fact that there are always contrasting players following different goals in the industry.
Wherefore I am confident that now it’s more than vital for Fintech to keep loyal customers and to offer a high-quality client-oriented approach.
Since the customers themselves are the primary source of profit, market value, and growth, we must handle them with care. Before meeting client requirements, companies also have to define their own needs. Fintech is an updated version of financial management organization. However, its customers are well aware of the pros and cons of banking. They are clear about what they need from the Fintech service and are careful in changing the stable banking to the new financial institution.
Here I am bringing you to the point that delivering a product is just an initiative. It is your delivery mechanism and customer experience that will help you achieve sustainable growth.
The changes in customer behavior have sped up the need for innovation. The winners in this game will be those Fintech organizations that are agile in technology and have excellent customer support. It is the major indicator of Fintech success.
Full automation is the first key towards improving your customer experience
Although Fintech companies provide an enhanced version of financial services, the solutions often retain their operating instructions. That is a disadvantage. Clients want speed and high efficiency from the service!
To be more specific, let’s imagine such a situation. When you are offering some kind of products in your e-commerce store, you are all about making a business prosperous, building its reputation, investing a great budget in marketing, etc. People trust you, and then… there is a problem with payments. After the customer’s money is debited from his account, the system shows that the product has not been paid for or the money has not been transferred to the last point.
What would you do in such a case on the client’s place? Obviously, you first will try to get in touch with the company’s manager or payment service provider. And now picture that there is no one answering on the company’s side. As a result, you are losing your potential client and his reliance at the very moment. Not cool, right?
Now you probably come to the point.
The first thing that I offer to you as a Fintech-specialized company is to develop a user-friendly UI / UX. After, you need to automate routine tasks for the client such as entering a card number manually, user onboarding process, login maintenance.
In this regard, I see useful innovative technologies such as fast payment solutions, AI chatbots, AI-based identity verification solutions.
The Fintech industry is about money management, and surely it requires the analysis of many complex documents. AI-powered chatbots can significantly streamline this process by simplifying the UX. These personal self-service tools are the must-have technology for Fintech. They intelligently answer customer questions, help with accounts, do clerk work. Moreover, bots help customers with budgeting, handle complaints, and suggest solutions to problems. They can also accept orders and payments, manage customer requests, and recommend certain products.
The chatbot responds to a specifically identified client. Therefore, it can be programmed so that its responses would be as personal as possible and can provide clear-cut proposals for a client.
We should also keep in mind that it is impossible to automate everything. You can always offer to communicate with a person if the bot could not help. Such a client-oriented approach has a lot more positive effect on the user experience.
Show your customers you care about them
When you feel secure and comfortable with the specific company, will you leverage its services more often and recommend them to friends? – I am sure most of us will! It works the same with the technology. Implementing security measures in the Fintech industry is a front-page towards your customers’ reliance and their superb experience.
Show your client some security concerns! Bring about technologies that will make your user feel safe. Take the necessary steps to ensure it, and you will feel a significant preference of the client towards your organization! Here I would like to point up real-time customer identity verification, secure payment service, biometric login authentication.
Modern technologies make it possible to use authentication and identification methods that were previously unattainable. First, I am talking about biometric methods, when a computer system recognizes a person by a face, retinal pattern, voice or fingerprint.
Implementing an AI-powered identity verification solution will help to refresh your customer onboarding process.
The client can be verified within seconds. Fast and accurate identity verification will ensure a smooth user experience while increasing customer retention rates.
For quality service transactions conducted by customers, my suggestion is to use behavioral analytics. An important part is an artificial intelligence, work with Big Data, machine learning, secure control technology for customer devices, transaction monitoring and data management technology. So, how exactly do they benefit for your business in terms of customer experience? Here I would highlight the next key benefits.
- Collecting data on the characteristics of user behavior on the network and using this information to analyze the transactions;
- Monitoring and analyzing operations in real time;
- Introducing anti-spoofing (verification of user messages in order to avoid fraudulent actions by intruders);
- Using anti-fraud (assessing the “legitimacy” of transactions);
- Detecting fake documents, including those processed using Adobe Photoshop.
Efficient security standards will bring your business to the new level! Handle your customer data with extreme care and make a visible effort with it. As a great additional option, I would recommend making your customer data protection and privacy policies prominent enough on your website or app to grab the attention of customers. It also shows the company’s confidence in its security practices.
We are witnessing how alternative cutting-edge solutions appear and are already being successfully applied. They allow us to significantly change the approach to doing business and expand the range and availability of provided financial and non-financial services.
Customer experience is the key indicator of the success of a Fintech company. It would be shortsighted not to use the up-to-date trends and technologies in enhancing clients’ support today.
Now it is time to figure out how to turn your plans into reality. To get the most out of your technology and keep up with the times, you will need a partner who understands the industry and knows how to innovate the customer experience to drive its growth. FreySoft, both from a technology and business perspective, is the ideal partner for ambitious Fintech companies.