Financial technology (fintech) has long been a part of the financial servicing industry. In recent times, it gained traction as the new kid in the block – mostly due to the companies wanting to know how people are preparing for the financial future.
Consumer banks that are available strictly as mobile apps are generally targeting millennials, who don’t rely as much on the traditional banking system as their preceding generations did. In fact, studies have shown that the millennial target group is more inclined to go for a routine health checkup than their local bank’s branch.
Leaders of the fintech community are of the opinion that regardless of their age, people are warming up to the idea of seamless transactions in personal banking. That puts forth the question of winning customers through the concept of mobile banking.
How can a fintech company win millions of customers?
What makes a fintech company attract customers?
A company aiming to bring a change in a particular field can’t hit the ground running right away. To attract customers, it’s important to not look down upon the features of the existing field that they want to replace.
Difference with conventional banking
Let’s be honest – the world’s moving pretty fast and we can do without spending hours to deal with the financial aspect of our lives. So understandably, fintech companies put something different on the table – quick and simple transactions on our smartphones. That’s just the basics of it and helps in saving a lot of time to open a bank account, withdrawing or sending money.
Moreover, the traditional banking structure is quite complicated, when it comes to making important financial decisions. A lot of the time, we don’t understand the clauses and make decisions in haste, which ultimately backfire. Fintech companies make it more simplistic and lower the financial literacy barrier to ease decision-making capabilities.
Relation with target group
In financial services, it’s almost mandatory to build a rapport with the target group. Several successful fintech companies take ideas and requests from their customers to improve their services. They regularly interact with their customers, most of whom are millennials and/or elder people who prefer digital banking more.
As a result, the overall customer experience improves, along with the improvement of some of the services that haven’t had any change over decades!
Data privacy and threats
As has been the case in recent times, data privacy has been under threat in recent times. Users don’t feel safer now compared to a while ago when data privacy wasn’t at stake. The fintech companies have now started to bring about change in that aspect as well. They don’t give out all the information about their customers to third party apps or partner companies. They give out selective data with the approval of the customers, so as not to mess up the customer’s privacy.
Capturing growth markets
A growth market for a fintech company is one where the prevailing banking services are either in a bad state or are too expensive for the commoners.
Currently, some of the European countries like France, Germany, Italy, the UK are as much of a growth market as the US. With a growth in the number of users getting frustrated with the complications of traditional banking, there is a huge opportunity for the fintech industry to seize the day!
Asia, as a market, is more advanced than Europe, in terms of tech companies releasing products to suit their customers. Thus, to capture the global market, work needs to be done at the European and American market first.
It’s expected that financial services will evolve to be a more customised service. A person with a new job will have different financial needs, compared to someone closing in on retirement. Thus, with the improvement in services and coming across as an industry that treats everybody separately, it’s not hard to look into a future where fintech companies are the norm.