Despite the financial uncertainty over the last year, Fintech saw significant investment globally.
Perhaps more significantly we have seen greater consumer adoption of Fintech products.
“Fintech adoption reaches 86% of the UK population”
— FinTech Global
However with great adoption comes greater expectations.
With the market no longer dominated by Big Tech, the time is now for start-ups and growth businesses to consider how they can deliver better products that will capture the loyalty of their users
Product owners must consider how their product and brand strategies will build trust and deliver human-centred, connected solutions.
Brand trust is crucial
Just as someone wouldn’t hand over their wallet to a stranger, a user isn’t going to share their payment details with a platform they don’t trust.
Consumer trust in Fintech has been impacted by recent controversies and security concerns, in both traditional finance and crypto assets. From the devastating and very public collapse of FTX to Paypal’s security breaches, consumers are more aware than ever of the risks associated with financial technology.
Fintechs must show resilience in the face of controversy. Rather than shying away from innovation, they must work to regain consumer trust.
So, how can Fintechs instil trust in their products?
Transparency must be at the heart of brand strategy and built into the product experience.
Robinhood demonstrated an impressive bounceback through reparative communications with their community.
Today they are showing net trust recovery akin to Wells Fargo after their account fraud controversy.
Frictionless UX is non-negotiable
There is nothing more irritating than getting ready to complete a purchase and getting booted off onto another website. Worse, a connection failing and having to start all over again!
Although banks have been utilising white-labelled financial service products for decades, innovative APIs now allow seamless integration of these services by non financial companies. Enter embedded Finance (EF).
“The Embedded Finance market is predicted to double within the next three to five years”
With EF on the rise, providers must offer seamless ways to integrate with their solutions, but also ensure that the brand experience feels native.
There is an opportunity to learn from the rise of the buy-now-pay-later integrations like Klarna. They have infiltrated a multitude of sectors, offering a clean and frictionless user experience.
So how can Fintechs ensure a frictionless UX?
Start by mapping your product. How you can take the pain out of the customer experience and add greater value?
Look to offer services that can be easily adopted and make use of the best embedded finance solutions to accelerate your speed to market.
Humanise the digital experience
With Fintech replacing the traditional brick and mortar experience, focusing on customer needs must remain a priority.
We are already seeing fintech companies providing enhanced communications through AI, reducing response time and providing 24/7 support. The Bank of America’s chatbot, Erica is lauded as one of the best.
Not only does it strike the right chord by being personal, but its deep integrations with the banks’s other services as well as Zelle payments, means that users can place trades and track performance without leaving the chat conversation.
Similarly, Cleo – a fintech chatbot for personal finance coaching has brought humour to financial management.
Cleo uses advanced technology to deliver personable and memorable advice, responding with both a numerical answer and a cheeky comment to make you think about your habits.
Why should Fintechs humanise the digital experience?
By humanising the digital experience, Fintechs are democratising their products, driving greater accessibility and adoption.
We have already seen the implementation of voice payments in IOT technology such as Alexa and Google assistant, and we predict that we will see greater adoption amongst growth products in the near future. Barclays Bank using AI voice prints for security authentication is another good example.
For those who not only want to grow market share, humanising the digital experience an no longer be an afterthought.
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