In the current digital age, it has become a priority for every leader in the banking and financial services industry to manage customer expectations. According to the majority of CEOs in the insurance, banking, and fintech companies, dynamic, real-time, and hyper-relevant experience encountered across the industry shapes the majority of customer expectations.
Two major reasons that more and more organizations in the banking and financial services industry are focusing increasingly on customer experience are changing customer behaviors and the emergence of new digital technologies.
How Fintech is Transforming the Customer Experience
The customer experience with financial institutions can be a grueling one whether it is setting up an account, applying for a loan, and transferring funds in a legal way. Often, this involves lengthy times and a non-intuitive and confusing web design. The good news is that fintech companies have taken it upon themselves to improve the frustrating customer experience.
While fintech means financial technology, it isn’t just for the financial sector. Instead, it can be applied to almost any industry; fintech technologies can be a game changer for customer experience in almost all sectors.
Of course, the banking and financial services sector stands to benefit the most from fintech technologies. If you’re thinking how fintech is helping transform the customer experience, then following are some of the reasons for you to invest in this latest technological innovation for your business.
1. Seamless and Responsive User Experience (UX)
Today, online customer experience is no longer limited to a simple website; it has now extended to banking and business applications that people use on the go on their smartphones and tablets. One example of this is the fintech company Square. The app of the company can work on any smartphone, tablet, and Point of Sale (POS) device.
When it comes to offering a user experience (UX) to customers that is similar to that provided by fintech companies, established banks and financial services companies are struggling big time to keep pace. More than half of people who took a recent survey by Accenture said that they would gladly bank with Square if this service was offered to them. This is largely due to the seamless and responsive user experience (UX) offered by Square; others fintech companies are also trying to do the same.
2. The Coming Together of Social Technology and Investing
Many pain points of traditional investing have gone on unresolved for too long. Often, a significant capital contribution is needed to gain access to a high-level, professional investment advice. Although this gives you the benefit of an in-person interaction with an experienced wealth manager, it is usually not worth the impact on your finances.
Several online trading platforms claim to be ‘budget friendly’; however, often they too are tied to a larger organization which ultimately shows up. The good news is that some fintech companies are looking to changing this. One example is eToro: a fintech company that brings a new innovation or concept to the table; the new concept introduced by eToro is that of ‘social investing’.
What is social investing? It is a concept that look to discouragethe idea of handing over your hard-earned money blindly to a mutual fund and then hoping for the best. It does this by letting investors see what the platform’s best investors and traders are doing, which allows them to adopt the latter’s best or most profitable strategies; the end result of this is better or more profitable investing for all users of the platform.
According to eToro’s Co-founder Yoni Assia, what social investing a completely different customer experience from traditional investing is that it allows users to connect, communicate, and share with other people from all walks of life; it provides people with the emotional connection in their finances they crave. Keeping the same level of emotional connection at all stages of the customer journey ensures a seamless customer experience.
3. Customers Have a Better Understanding of Financial Data
Let’s be honest: no one wants to keep seeing the same old pie charts and graphs in reports and dashboards. To allow people to be more engaged with their personal finances, some fintech companies have taken it upon themselves to overcome this challenge.
One example is Mint. Com. Intuit recently acquired this fintech start-up which provides interactive and colorful dashboards and reports that people can use to visually interpret how they spend. The dashboards of Mint.com were recently voted by FusionCharts as one of the emerging trends in dashboard design.
Another example of fintech enhancing customer experience by making financial data easier to understand is Concur. Acquired by SAP a few years ago, ‘Concur’ is an application for reporting experience that has interactive, real-time dashboards that provide a unique way to track travel expenses. Regardless of the industry you operate in, the ability to effectively analyze data and then present it in actionable and insightful way to the end-user will help you a lot in improving customer or end-user experience.
4. Mapping of Customer Journey
Fintech companies are making it possible to map the customer journey. A holistic view of end-to-end customer journey from the perspective of the end-customer is needed to understand the customer experience.
All of a customer’s interactions with an organization at all stages of the journey form the customer experience. This makes it essential for organizations to focus on the cumulative experience of a customer across several channels and touch points over time. Launching improvement initiatives at individual department levels no longer works. The only way to find out the root cause of customer dissatisfaction and define the outcomes expected is by analyzing customer journeys end to end, fintech is helping to do just that.
These are just a few of the many ways fintech is transforming the customer experience. To find out about the other ways fintech is changing the customer experience, keep following us.
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