FinTechs have made incremental gains and are reaching and engaging a critical mass of bank-first customers. FinTechs are setting new standards for innovation and customer experience. Around the world banks are reviewing their branch expansion plans. This has far and deep reaching impact on hiring, investing in technology and more.
The banking industry has been slow to evolve. FinTech industry’s stellar growth proves the fact that the customers were ready for a better experience. They hence became FinTech customers first.
FinTech’s provide superior experience
FinTech’s are tech-first companies. While they build over the backbone of the banking industry, they are able to win customers a lot faster. Because they focus on the customer first. Their core focus is on building a phenomenal end customer experience to be more valuable over the banking layer.
What has been disrupted : payments and lending
There are examples around the world. PayPal, PayU, Stripe, PayTM, Apple Pay, Samsung Pay and so many other FinTech companies that started as pure play payments companies. Many of them have now diversified to be FinTechs that have built solutions for lending and other banking transactions.
The volumes of transactions happening via the FinTech applications have risen sharply especially in emerging countries. While there has been a considerable traction in the US, in China and India these numbers quadrupled in terms of new customer adoption growth rate.
What is driving this fundamental shift which cannot be ignored anymore?
Customer experience (CX). The asset that FinTech’s are investing in is CX. They are using data modelling, front-end technology, AI, ML and the old-school customer interactions to understand customer behaviour and choices.
This investment in CX is creating billions of dollars in value.
DialDesk research insight
We strongly believe that CX is the fundamental foundation for absolutely every business to remain relevant in the future. The future that we are discussing is not the next decade. Infact this future in many ways has arrived already.
Great customer experience in banking can be worth millions – Forrester
At DialDesk we are advising businesses to create innovative CX solutions and win customer loyalty, trust and increase retention and referral.