Physical, in-store transactions at financial institutions are no longer the norm. Gone are the days when waiting in long lines to make a deposit or apply for a loan were essential. Thanks to digital banking, mobile payments, budgeting apps, online stock trading, and so much more, customers can take care of most of their financial needs online and through their devices. In fact, a recent survey from PYMNTs finds 78.1 percent of consumers use mobile banking apps to check account balances. Consumers also use their devices for mobile card controls (63.5 percent), depositing checks (62.6 percent) and paying bills (61.9 percent).
Soon traditional bricks and mortar may soon not be a necessity at all to be a player in the banking and finance industry. Neobanks, which are banks without any physical branch locations, are built on digital infrastructure and are increasingly cropping up annually.
With all of these factors considered, businesses know they must head into the future with a fintech strategy as part of their services. Fintech, which is the integration of technology into financial service applications, is a term that describes technology that aims to improve and automate the delivery and use of financial services. Just about any business that does not have fintech in its sights will be left behind as more users demand digital banking, payments, and financial services round the clock.
What are the essentials customers look for now when they decide what to use for fintech services? Figures from EY also found some of the top reasons why customers are attracted to certain kinds of fintech include:
- 66% Range of functionality and features
- 55% Availability of services 24/7
- 53% Ease in setting up, configuring and using the service
Seamless self-service is critical
Customers want self-service financial technology that allows them to easily and seamlessly check balances, make transfers, manage their accounts, design their budget, pay friends, apply for loans, take out lines of credit and make trades – all without having to interact with a human. Quick, easy and on their own - only interacting with an actual person as back up under certain circumstances. This means that fintech for 2020 and beyond must be designed with chatbots and artificial intelligence (AI) in order to deliver these no-touch services customers want today.
Card-linked offers and incentives will inspire loyalty
Card-linked-offers, which allow customers to tap into consumer-targeted offers by using their bank or credit cards, have grown by more than 100% according to a recent industry study and is worth billions. Fintech must appeal to clear consumer desire for these kinds of programs in building out new technology and platforms. With so much competition in the space, those with the most attractive offers, that are convenient and easy to obtain, will come out on top.
Easy communication through all channels must occur
As stated earlier, customers want self-service. But they also want a positive omnichannel experience at times when they need human help. The ability to conveniently move between channels seamlessly will also be an essential element for fintech success going forward. For example, transactions that begin online should pick up easily in person if a customer needs live help. Fintech should be built with a fully-integrated customer experience in mind and should leverage analytics, AI and machine learning and other tools that will ensure both a personal touch and provide time savings to clients.
Are you ready for the next, consumer-driven phase of fintech?
Businesses who need to reach customers with fintech applications must ensure their platform that has the ability for innovation now - and to scale to trends and changes in the future. And with security and privacy now top of mind for most everyone, that platform must be designed with a level of security across all integrated applications.
In order to design and deliver fintech that stands up to today’s consumer demands, you’ll need to draw upon skills and knowledge of how best to leverage both cloud and on-premise technologies to develop a true omnichannel experience for the consumer.
Get FinTech right with MOQDigital
MOQDigital is your partner in developing a fintech platform that speaks to today’s customer desires for always-on, convenient access to financial transactions. Having shepherded many successful projects, we’re experts at creating roadmaps, identifying priorities, and implementing advanced technologies. For more information about how we can help you develop a consumer-focused fintech strategy in 2020 contact us today.