How can Fintech win in the Red Sea? Improve the customer experience

From the very first ATM in the 1960s to the rise of smartphones that led to mobile banking in the 2000s, and now in the booming digital era of super apps and fintech, the financial industry has evolved to improve the customer experience. While customers may choose a financial product or service for its features and functions, the 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 mass adoption of consumer fintech with eighty-eight percent of US consumers using technology to manage their finances in 2021. Money transfer and payment service technology was the most adopted with seventy-five percent of global consumers as of 2019. With such growth, traditional offers are not enough. Consumers now require more technology-based, customized products, which requires fintechs to adapt quickly.

Offer streamlined and thoughtful API products

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

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

Depending on the demand, different API functions can be added to the business system with flexibility. They are building blocks used to create solutions covering currency, recurring or one-off payments and domestic or cross-border currency payments. Also, a streamlined system increases operations through effective machine communication, reducing losses due to human error. With APIs, companies can spend more time and resources creating more meaningful connections with customers.

Provide holistic solutions by tailoring offers to meet customer expectations

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

As the industry develops with more varied customer profiles, companies and organizations must present more varied products and offers that meet different customers’ needs. This requires fintech providers to adapt to dynamic market conditions. Access to customized solutions that meet customers’ unique expectations can make the fintech experience more intimate.

Furthermore, fintech providers continue to focus on data-driven solutions. Eighty-six percent of banking customers said they are willing to share their data for a better, more personalized experience, proving that financial services such as Banking as a Service (BaaS) offer unprecedented opportunities to aggregate data across their ecosystems. Industry leaders who use new ways to collect user data and process it to build better interaction models will differentiate their solutions for businesses and customers alike. A collection of innovative technology, global networks and financial experts can pave the way for fintech providers to create a comprehensive suite of on-demand solutions and win trust.

Make digitization more “human”

The human connection doesn’t have to be a victim of smarter technology. Supporting technology with a personal touch, encouraging loyalty and nurturing customer relationships is essential.

Technology solutions help companies manage customer expectations and experiences. Meanwhile, 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 point of contact or dedicated account manager significantly improves the user experience, especially when customers face challenges. The balance between digital tools and human support is necessary to retain customers and reduce churn.

Conclusion

To meet the changing needs of customers, the fintech industry must remain agile and always innovate its infrastructure. Improving the customer experience will increase client intimacy levels, resulting in stronger client retention. Customers may choose products or tools because of their features, but a consistent end-to-end user experience will keep them. Pairing sophisticated technology with personalized service and maintaining product quality is the key to reaching, engaging and retaining customers.