How fintech can upgrade customer experience in banking

Fintech startups increasingly use data-driven approaches to attract more clients. Read our article to uncover four main ways of improving customer experience by fintech startups.

Ostap Zabolotnyy
Ostap ZabolotnyyDigital Marketing Manager
How fintech can upgrade customer experience in banking

The fintech sector has exploded in recent years due to the rise of neobanks, virtual credit cards, digital currency, AI-powered financial servicing, and conversational interfaces. New virtual banks swiftly adopt technology-based payment methods, cooperate with money transfer organizations, like Xoom or MoneyGram, and work with payment gateway providers, including PayPal, Stripe, Amazon Pay, to give their clients the experience they want.

New fintech startups discard many traditional banking and approaches of financial institutions and focus on delivering an intuitive and personalized customer experience. They collect and analyze customer payment data, examine behavior patterns, and adjust their services to the current needs of their clients. 

Read this article to learn how you can use data-driven approaches to provide the most convenient servicing to your clients, increase their loyalty, and build trust to reach new audiences.

Profound personalization is pivotal

A killer feature of neobanks is the fully digital nature that allows clients to execute all the operations using smartphones, laptops, or other devices. Digital-only banks don't have physical locations and can invest more time and resources into providing highly personalized servicing, unlike traditional institutions.

New clients of neobanks should have an opportunity to set up their accounts and choose the perfect experience. If you try to reinvent your banking organization for a new era or launch a neobank, think carefully about how you could ensure that the fintech customer experience you offer will attract loyal audiences. Taking an insight-driven approach and harnessing lots of customer data may help you succeed.

That's why 76% of banks worldwide use advanced data and machine learning to modernize their approaches to service provision. By collecting information about client's behavior, services they prefer, or the frequency at which they use apps, you may find out the most important needs and shape personalized offerings. With data at hand, you could give your clients a wide variety of options and features to choose from, which could make your organization the most sought-after among financial service consumers.

Chatbots help build trust through efficient communication

The primary audience for fintech is millennials, and among them, 60% use chatbots to purchase online. Financial institutions are vigorously introducing chatbots to ensure 24/7 customer support, assist clients with real-time financial transactions, and give them the feeling of being cared for by their bank.

Chatbots provide clients instantly with the information they need by answering basic questions and helping customers find products or services. Chatbots are easy to use, and they are continually learning how to handle the most diverse range of customer queries with the greatest efficiency.

When you employ technology to help clients resolve money-related issues within a couple of clicks, you take a step towards creating more efficient, safe, and trustworthy financial services. In the highly competitive fintech industry, your organization's digital-first mindset will be an advantage to attract more and more loyal clients.

Financial literacy impacts purchasing power

Fintech organizations extensively use customer data on spending behavior, bills, debts, and recurring payments to assist clients in enhancing their financial literacy. Financial services providers know that chaotic spending may result in huge debts and, hence, sporadic purchasing, while clients who plan their budgets may buy consistently.

Banking and financial institutions that have developed financial literacy initiatives often leverage technology to get a complete picture of how much money clients spend. They draw up financial profiles using a list of all the bills and debts a client has and then track their purchasing activities for a certain period. A financial profile gets compared to a set of rules, which allows detecting clients who are inclined to spend too much.

Sometimes the financial profile may include information about the literacy levels of a client's family members. Financial literacy initiatives may involve educational components for individuals and family plans. This initiative allows clients to spend more in the long run and allows neobanks to increase their revenue and profit.

Real-time banking substitutes traditional models

The key advantage of fintech institutions is the easy and instant payment processing they offer at low fees and competitive rates. They rely on highly secure online and mobile payment platforms to enable real-time transactions. Industry giants like Google, Apple, or Amazon have their products that customers actively use. Other organizations opt for custom payment solutions to provide clients with access to top-notch payment models.

Making payments with mobile devices is often straightforward, and customers welcome the new method. Mobile payments have become a trend during the pandemic, which has led to an increased competition online. So fintech organizations should pay special attention to building trust with customers and offer unique payment solutions that are easy to use and customize.

Final note

Outstanding fintech customer experience is more important than ever, especially for digital-only neobanks. Digital banking is changing the way organizations interact with their customers. Forward-looking fintech institutions rely on innovative technology, such as machine learning, big data, and AI to elevate customer experience and provide plenty of options for their clients. 

If you wish to create a fantastic fintech customer experience, focus on personalization, trust-building methods, and tailor-made payment solutions. That will help you win more loyal clients and stand out among competitors.

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