Fintech: better user experience in financial services

Fintech: Better user experience in financial services

Fintech is an information and innovation system that offers financial services directly to the client, having each one a specific financial service designed especially to innovate.

The financial technology business develop activities like:

  • Digital credit
  • Digital pay
  • Crowdfunding
  • Open banking
  • Personal finance

Something important about Fintech is the interest to have their own digital identity, that facilitates the flow of the customer, inclusive finances and provides faster and easier services.

These companies make intelligent use of the technology taking more advantage of the technological advances to develop more user-friendly financial services, seeing the mistakes of the traditions online banking and use it in their favor. That is the key, the value proposition is to have one or two services but much better than traditional banks. For this reason the Fintech sector is growing, for the quality of the user experience and because several startups are quickly becoming scale-ups.

Types of Fintech

Alternative finance:

Create platforms where multiple investors find rentability in an area where common or small investors didn’t exist. There are a lot of models, from the exchange of information and financial opinions to investment strategies. 

Personal finances:

Offer to their customers efficient and transparent services, with facilities, like international pay with credit cards and transparency with the currency changes, easier bank loans in platforms. Also, in this section we can talk about crowdfunding, the financing of projects by individual investors.

Cryptocoins:

Bitcoin and blockchain technology are part of this term, and are designed to make payments very similar to cash, directly to other people without intermediary, wire transfer or credit card.

Neobank:

The people that bet in business neobank, have to know that neobanks propose totally online banks that offer digital solutions to financial problems of day to day.

Like the traditional banks, neobanks have the option of a credit card, some saving options and other products, but all of this is presented like only digital simple solutions, that make more engagement.

Other ways to classify the fintech

  • Startups or small business:

    New business that use the technology with a scalable business model, if it has a correct growth, will become Scale-up. 

  • Unicorns:

    Are startups whose valuation is higher than one hundred million dollars, this is why they are called unicorns, ‘cause it is hard to have this valuation, beside the projection of the growth is more than the reality, that’s why, in general, it fails.

  • GAFAs:

    Is the acronym Google, Amazon, Facebook, and Apple. These companies, also known as Bigtech, are in the top 10 of the more capitalized industries, and have spare capacity to dabble in any business area. 

We are talking about the bigger companies that could offer advanced financial services, and we know that it is hard to compete with them, but if we are talking about Fintech it is important to know the importance of security.

The password could be an obstacle in a good customer experience, because if the customer forgets the password they will have to do several processes, and if they use some password that they do not forget, usually, these passwords are not safe for his data security. 

That is why the Fintech industry could use data protection services, or just use the resources that the new digital devices have integrated, like fingerprint sensor, face recognition or voice recognition.

This way of virtual data protection, makes the customer feel more involved in the product, improving the engagement. There are new technologies that explore more emotional alternatives, easier for the customers, better branding for the company.

Something important that any Fintech has to consider, is to make use of the smart data, that will bring more information to know how the customer interacts with the product or service.

A lot of fintech companies are already using smart data, and the traditional banks could do a partnership with these businesses, and invest in companies that offer CRM services like SQDM.

These services of smart data that do this client profile, will help the company to :

  • Know better the customers
  • Do effective customer engagement strategy
  • Anticipate any problem or anomalies
  • Increase the customer loyalty
  • Use the monitoring of the behavior to give the appropriate advice of the products and services

With Smart data services, the Fintech companies can:

  • Be always in the right time, in the right channel
  • Identify fraud and manipulations, with all data, the company can understand behavior patterns, and know normal behavior of their customers.
  • Credit increase, if you know your customers, know what they need

We recommend you: CRM for companies How implement it?

It is important to know that Fintech companies must have people that know what to do with all this smart data, to have all these benefits, and can do effective strategies with this basic activities:

  • First, it is very important to have a person to be a customer engagement specialist, maybe a digital marketing director or a creative marketing director. This person has to know how to manage data and digital vanguards, must work with different teams, ensuring everything is directed to the client.
  • With all the data that could have, the team has to build a client profile. At the first time, it will be a very basic profile, but with the help of services or software like Salesforce, it will become a bigger and more complete profile. The important thing is to have all this information in one place to have easy access.
  • Now with all this information you can know how to offer personalized promotion of products or services, this adds value to the brand, and helps the customers to have better financial decisions.

Some user experience trends that fintech are doing are: 

  • Data analytics:

    With artificial intelligence and other services, fintech companies are revolutionizing financial services, this helps the customers find personalized financial services, without long and delayed procedures.

  • No contact interactions:

    With all things that happened after the pandemic, it is important to the customer to avoid the personal contact, preferring digital platforms with pay apps, and 24/7 customer support.

  • Omnichannel:

    This one of the most strong characteristics of Fintech, because the people on average have three devices or digital channels, in which they wait to do all their financial operations.

  • UX Writing:

    Maybe an underrated trend but is very important, the customers love the stories that improve the trust, and connection. These stories make sure that the customer has a really good digital experience, so you have to ensure that you have a good ux writer.

All things that differentiate Fintech and traditional financial services is the customer experience, this is why it is important to apply specialized software programs like Salesforce that helps your fintech company to improve this thing that makes it unique.

SQDM is your ally if you want to enter the market the correct way, being competitive thanks to all CRM services that we have for you.

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