How can Fintech Win in the Red Ocean? Enhance the Customer Experience

From the very first ATM in the 1960s to the rise of smartphones leading to mobile banking in the 2000s, and now in the booming digital era with super apps and fintechs, the financial industry has evolved to improve the customer experience. While customers may choose a financial product or service for its function and features, user experience is what makes them stay. 

With thousands of fintechs being brought to life, customer expectations and financial needs have evolved. COVID-19 accelerated the fintech mass adoption for consumers with eighty-eight percent of U.S. consumers using technology to manage their finances in 2021. Money transfer and payment service technology was adopted the most with seventy-five percent of global consumers as of 2019. With such growth, traditional offerings are not enough. Consumers now need more technology-based personalized products, which requires fintechs to promptly adapt.

Offer streamlined and thoughtful API products 

As the fintech industry is evolving and becoming more promising, there will be more regulations and legal requirements awaiting industry players in the future. In the event of new regulatory compliance changes requiring updates in the application system, customers would be interested to know how fintech providers plan to ensure that the user experience remains smooth.

That’s why many companies are choosing APIs as a hassle-free solution to streamline their process. APIs allow businesses to easily integrate without making significant changes to their ecosystem, and avoid confusion for customers as a result of system updates. The advent of APIs has completely reshaped the future of the financial services industry by enabling partnerships between banks, fintech firms, and other financial service providers, such as accountants or consultants.

Depending on the demand, different API features can be added to the business’ system with flexibility. They are building blocks used to craft solutions covering foreign exchange, repeat or one-off payments, and domestic or cross-border currency payments. Moreover, a streamlined system speeds up operations through efficient machine communications, reducing loss due to human error. With APIs, businesses can spend more time and resources on creating more meaningful connections with customers. 

Provide holistic solutions by tailoring offerings to meet customer expectations 

In the past, traditional finance required physical contact to manually collect customer data from customers and carry out research to develop a personalized solution. This time-consuming method is expensive and came to be classified as “premium service”. But now, digitalization and modern technology have made hyper-personalization and embedded finance available for everyone within a few clicks. 

As the industry evolves with more varied customer profiles, enterprises and organizations need to present more diverse products and offerings that meet different customers’ needs. This requires fintech providers to adapt to dynamic market conditions. Access to customized solutions that meet the distinctive expectations of customers can make the fintech experience more intimate.

Further, fintech providers continue to focus on data-driven solutions. Eighty-six percent of banking consumers said they are willing to share their data to gain a better, more personalized experience, proving that financial services such as Banking as a Service (BaaS) are offering unprecedented opportunities to gather data through their ecosystems. Leading industry players who use novel ways to collect user data and process them to build better interaction models will distinguish their solutions for both businesses and customers. A compilation of innovative technology, global networks and financial experts could pave the way for fintech providers to create a holistic suite of on-demand solutions and win trust. 

Make digitalization more ‘human’

The human connection does not have to be a casualty of smarter technology. It is crucial to support technology with a personal touch, encouraging loyalty and nurturing customer relationships.

Technology solutions help businesses manage customer expectations and experiences. In the meantime, they can also support key decision-makers to understand where and when human support is needed based on the number of engagements between users and the technology. As a result, a business can leverage technological tools to build a hyper-personalized experience. Access to timely support from a designated contact point or dedicated account manager vastly improves the user experience, especially when customers encounter challenges. The balance between digital tools and human support is necessary for customer retention and reducing churn. 

Conclusion 

To meet the changing needs of customers, the fintech industry will have to remain agile, always innovating its infrastructure. Enhancing the customer experience will increase client intimacy levels, resulting in stronger client retention. Customers may select products or tools because of their features, but a smooth user experience from start to finish will retain them. Pairing sophisticated technology with personalized service and together with maintaining product quality is the key to reaching, engaging, and retaining customers.