How to reduce the interruption rate for Fintech apps

In the wake of the Covid pandemic, fintech transactions increased by 13% and volume by 11%, indicating significant industrial growth. Two years later, however, we are facing a new reality as the fintech market begins to mature and consumer expectations develop along with it. The outage rate for fintech applications increases with customers becoming dissatisfied with digital financial products, especially during onboarding. But why is this happening, why now and what can you do to prevent it?

A fintech paradox

An increase in users is met with high outage rates – this is the fintech paradox.

Despite this paradox, the market continues to mature, and in general, more users trust fintech products with 37% citing a fintech company as their favorite company. That said, over 68% of consumers abandon fintech applications during the deployment process.

This is the fintech paradox. Although consumer confidence in fintech vendors grew during the pandemic, many of the processes they use on board users came straight from the physical playbook – long forms, many questions and a lengthy process of opening an account – a world away. the user-friendly digital procedure customers expected in other areas.

Since the outbreak of the pandemic, the time that users are willing to spend on these applications has decreased. For example, in 2020, users were willing to spend 26 minutes boarding a fintech app. Now, in 2022, this number is reduced by eight minutes to 18 minutes and 53 seconds in total before a client drops out of the process for good.

However, it is not the application alone that drives away users. Other reasons given in our experience include:

• Data protection and the amount of information requested indicate that consumers are still monitored for their safety, and rightly so. The banking industry experienced an increase of 1,318% from year to year in cyber security attacks in the first half of 2021 alone

• The lack of information is a factor. For example, the unbanked crisis is affecting over 1.7 billion adults worldwide. Although not all of this is due to fintech providers, strict processes obviously help to keep more and more people out of the financial system.

Complicated and complex applications can also affect the likelihood of completing applications. Whether it stems from poor UX design (user experience) or overly strict AML / KYC procedures, many clients cited this as one of the reasons for leaving the onboarding process.

• Some people simply change their minds during the process. Unclear, misleading or extensive introduction processes can lead to new customers being afraid of the product or distrust of how it works, which leads to an increased drop-out rate.

How Fintech Suppliers Can Retain Their Customers

While financial providers, including fintech companies, are required to complete the required AML (anti-money laundering) and KYC (know your customer procedures), many are wondering if it is possible to simplify processes for clients while remaining compatible. The answer is yes. This is how:

• Know your target audience

Knowing the customer base in and out is a must. Gone are the days of the local bank where everyone knows everyone. Instead, consumers demand more personalized services that meet the needs of their smartphones. By using user persons, research data, client interviews and more, you can get to know your customer and their needs better.

This gives you the unique opportunity to adapt the product to your audience. As consumer needs continue to evolve and mature, consumers are expected to demand more polished products and become less tolerant of the unpolished.

Make AML and KYC user-friendly

Although AML and KYC are essential for any financial product, technology has advanced to ensure that these can be performed with minimal problems for users. However, many fintech and traditional financial brands continue to use outdated means to verify the information. Aside from getting the right technology to do this and ensuring that the minimum documents required are present, brands should be aware of how this process is presented to the customer to make it as user-friendly as possible.

• Address privacy concerns at the outset

Data protection is a growing concern in many industries, and fintech is no exception. In fact, it should set the standards. Consumers want to know how their personal data is stored, used and how it is done. Being as open and transparent as possible in this regard helps deliver trust among consumers, making them more likely to use your business instead of a competitor. An excellent place to start is to follow all the industry’s best practices, such as GDPR, etc.

• Think globally, feel locally

Unlike the localized banks of the past, fintechs are becoming global and their rapid start is no surprise in the increasingly globalized world. With more people traveling (as pandemic restrictions are lifted), and the rise of digital nomads traveling and working, more and more people are interested in fintech companies offering cross-border banking. That said, local laws can cause nuances in services and financial procedures, so while a global strategy is great, it is important to look at local knowledge as well to tailor your services to the market.

Get the right technology in the beginning

While digital transformation can be costly, lack of development can prove fatal. Today’s consumers expect a seamless service that works to meet their needs wherever they are. By strategically upgrading your service, you have the greatest chance of meeting the consumer’s need for a smooth, fast financial service delivered in your regional market.

Fintech And The Future: What’s Next?

As fintech continues to evolve and customer expectations grow, suppliers will be faced with the dilemma of evolving and meeting consumer needs or disappearing into the financial past. Although the pandemic proved that digital is the future, a simple digital version of a brick-and-mortar plant will no longer be sufficient, and it is up to the brands to adapt to new market realities.