Excellent customer service has become essential for organizations targeting to attract and retain customers in today’s competitive landscape. Fintech customer experience is one of the aspects that has marked the difference between traditional financial services and the emerging sector of neobanks, cryptocurrencies, blockchain, and other technologies that are gradually replacing older technology.
As a result, we have included all you need to know about Fintech, its importance, and how you can improve the Fintech customer experience in this rapidly increasing area in this post.
What is Fintech?
Fintech is a type of technological software or application used to assist companies, business owners, and consumers in better and more automated management of their financial operations, processes, and lives through specialized algorithms on computers and mobile devices.
The term “Fintech” combines financial technology and encompasses any technology used to augment, streamline, or digitize the services of traditional financial institutions.
Fintech includes different sectors and industries, such as education, retail banking, nonprofit and fundraising, and investment management, to name a few.
Fintech platforms allow you to perform everyday tasks such as depositing checks, moving money between accounts, paying bills, or applying for financial aid. Still, they also cover technically intricate concepts such as loans between individuals or cryptocurrency exchanges.
Advantages of providing customer experience in fintech
Financial technology (Fintech) companies create new value for consumers by focusing on customer experiences through technology.
Fintech services make it possible to improve the customer experience by offering highly personalized services, for which traditional banks have not yet designed a convincing offer.
Fintech companies are enhancing the customer experience with new products, services, and functionality such as blockchain-based marketplaces, cryptocurrencies, global remittances, crowdfunding, cross-border payments, and open banking.
Fintechs are also complementing customer experiences with improvements to existing functionality, such as faster payment settlement, smart contracts in trading and lending services, cross-border custody services, and more functional payment cards.
The fintech sector has developed new technological tools to improve the customer experience, which makes the traditional model of the financial-banking sector obsolete.
For example, fintechs that offer digital wallets contribute to a seamless customer experience, simplifying procedures and facilitating online commerce.
7 main areas of Fintech
There are 7 main areas that makeup what Fintech or financial technology is.
01. Mobile banking
Mobile banking is an important part of the fintech industry. In the world of personal finance, consumers increasingly demand easy digital access to their bank accounts, especially on mobile devices.
Banking customers in different markets consume content differently, which influences the entire customer journey, customer expectations, and even the graphical user interface design of a mobile banking app.
Most big banks now offer some sort of mobile banking feature, especially with the rise of digital banks, or “Neobanks.”
Neobanks are essentially banks with no physical branches, offering checking, savings, payment, and lending services to their customers on a fully mobile and digital infrastructure.
02. Cryptocurrency and Blockchain
Parallel to financial technology, cryptocurrency and the chain of blocks (blockchain) have been born. Blockchain is the technology that enables cryptocurrency mining and markets, while advances in cryptocurrency technology can be attributed to both blockchain and Fintech.
Although blockchain and cryptocurrency are unique technologies that can be considered outside the realm of Fintech, both are theoretically necessary to create practical applications that advance Fintech.
03. Investment and savings
Fintech has caused an explosion in the number of investment and savings applications in recent years.
Although these apps differ in their approach, each uses a combination of automated small-dollar savings and investment methods, such as instant round-up deposits on purchases, to introduce consumers to markets.
04. Machine learning and trading
Machine learning has played an increasingly important role in financial technology, allowing large amounts of customer data to be processed by algorithms that can identify risks and trends.
All this allows consumers, investors, banks, and various associations to have a complete vision of the processes of acquiring goods and avoid possible risks.
05. Payments
Fintech has made it possible to facilitate payment procedures between any payment in the world, accelerating the digital transformation of thousands of businesses and consumers’ adoption of these technologies.
06. Loans
Fintechs also review credit by streamlining risk assessment, speeding up approval processes, and making access easier.
Billions of people worldwide can now apply for a loan on their mobile devices, and new data points and risk modeling capabilities are extending credit to underserved populations.
07. Insurance
Today, fintech businesses are collaborating hand in hand with the traditional insurance industry to facilitate the automation of processes and be able to offer broader coverage.
5 Ways to improve Fintech customer experience
Now that you know what fintech is and what the main areas it covers, it’s time to find out how the customer experience can be improved in this rapidly developing area:
01. Listen to your customers
Collect the opinions of your customers about the services. You want to know how they are feeling, understand their problems, and get an idea of their priorities. You may improve the Fintech customer experience by responding to your customer’s needs and providing quality customer service through effective communication.
For this, it is convenient to apply customer satisfaction surveys and opinion forms and analyze customer reviews and their conversations with your sales, support, and customer success teams.
You can also evaluate trends in support tickets, cancellations, social media posts that speak to your brand, and anything else you can look at to understand what your customers are looking for. You may also want to perform a sentiment analysis on this data.
02. Chatbots and virtual assistants
Customer onboarding is essential for the Fintech customer experience, as it helps new users to find themselves in the financial services ecosystem.
To carry out customer onboarding, it is recommended to focus on Chatbots, AI, and improved Fintech customer service to answer simple questions without overlooking human interaction to increase empathy with customer needs.
Most people are not tech-savvy or financially savvy, so it’s also a good idea to implement different types of self-service (such as an efficient FAQ section) to automate the app awareness process and let people manage their money in March.
03. Make your UX implementation smooth and responsive
People form their opinion about Fintech applications based on how easy, intuitive, and fast their operations are: transferring or counting money. Therefore, the application’s design has to be optimized for most devices and screen sizes.
A large part of the customer experience in Fintechs has to do with how easy it is for their clients to use their platform. The idea is to reduce customer effort and create a seamless experience that is never interrupted.
04. Increase the security of your data
There is literally no way you can offer your customers a positive experience program if they don’t trust you.
As a Fintech company, data security should be one of your main concerns. In addition to ensuring the privacy and security of financial transactions and operations, you must also ensure that customer support data is well protected.
Ensure you comply with PCI DSS (Payment Card Industry Data Security Standard) and ISO/IEC 27001:2013.
05. Bet on omnichannel
Offering an omnichannel customer experience is essential to keep up with the needs of today.
Your customers want to be able to contact you through whatever channel they use at any time. You shouldn’t force them to change the channel to get in touch.
However, if they decide to get in touch through one medium and then move on to another channel, you need to make it possible for them to continue their interaction seamlessly across multiple channels without starting from scratch.
Your chatbot and agents should have the context of previous conversations carried across all customer touchpoints, making their experience truly omnichannel.
Conclusion
The fintech industry is transforming the financial services environment with its innovative and technology-driven approach. By improving the customer experience, fintech companies create personalized services, innovative products, and streamlined functionalities that outperform traditional banking offerings.
To succeed in this competitive environment, fintech companies must prioritize customer-centric approaches, actively listen to their customer’s demands, and constantly improve the user experience through seamless interfaces, data security, and omnichannel accessibility.
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