The combination of technology and finance is not new. Financial institutions have a history of adapting to new technologies – credit cards, ATMs, and pin were all once the new radicals. However, FinTech is disrupting the service and shape of financial services on a much larger scale. From peer-to-peer lending to mobile payments, new players in the FinTech industry are bypassing the established financial middlemen and traditional banks. They are now delivering products and services directly to the consumers.
Today’s customers are continually redefining their expectations. They want personalization, convenience, ease of use, and accessibility. They want to feel like their financial company is anticipating their needs and not bombarding them with their product offerings. They want no surprises in terms of fees and exclusive transparency.
It has mostly been observed that traditional financial players are still in the early stages of solutions that are customer-oriented, at least when compared to what FinTechs have to offer. Below are some of the reasons how FinTechs have augmented customer experience:
Customers are no longer satisfied with one-size-fits-all models that are offered by traditional financial institutions. Instead, they prefer a more personalized approach to manage their finances. FinTech is filling that void by providing innovating solutions that allow the customers to own the creation of their experience. Features like real-time recommendations, intuitive user interfaces and personalized solutions are redefining the customer experience.
With the emergence of FinTech, customers looking for loan services are no longer required to take part in the ‘never-ending’ loan approval process that most traditional banks make them go through. All the procedures can be done digitally, with the minimal physical requirement of the individual. FinTech has the potential to increase accessibility and speed up the rate of approval for insurance or finance. In fact, at Clix Capital, the application, as well as the approval process, can be completed within 24 hours.
Automation to the rescue
Customers usually have a lot of questions and need guidance on various things regarding loan products and services. Roboadvisors provide an initial touchpoint for customers and provide solutions based on a customer’s profile and financial goals. Customers can get effective solutions, any time of the day. That being said, the human touch of customer experience isn’t going anywhere. However, they are used more as the ‘second line of defense’ to roboadvisors. By automating upfront, you can scale personalization without a significant cost increase.
Solutions for customers with poor credit scores
Most traditional financial companies do not lend to customers who have a credit score below 750, which is considered poor. FinTech companies cater to such customers by filling the gap. Because of this reason, millennials with low credit scores are turning to FinTechs for loans. Depending on the risk capacity and profile of the individual, FinTech firms create propositions to attract customers who face low credit score issues.
By prioritizing 24×7 accessibility, FinTechs offer services that are available via non-traditional channels, such as social media, that do a great job of empowering customers to a great extent. FinTechs also stand out by their focus on multi-channel offerings. They understand that they need to design products considering and fulfilling the needs of customers at different points along their journey.
Without a doubt, the rapid growth of FinTech has been very beneficial for consumers worldwide and will most likely continue down this path. Instant approvals, quick disbursements, and personalized services are just some of the ways through which FinTech firms have been leading the way in the financial spectrum.