The inevitable role of FinTech in improving your financial systems and outcomes
The COVID-19 outbreak has affected every aspect of the economy including financial technology or FinTech. Postponed events and conferences mark missed opportunities for FinTech companies, which could have been a great time to build relationships and focus on new businesses. As investors and customers retreat to more cautious positions, FinTech companies may find fundraising a challenge. Those who seek consumer investments are hit harder. Consumers may be reluctant to invest during such volatile times. Even those consumers who are relatively insulated from economic fallout may choose to invest in safer options for the present. FinTech innovations can improve the efficiency of the financial system and financial outcomes for their customers. This article will discuss how FinTech can safeguard customers’ interest in the post-pandemic world.
What is FinTech?
FinTech is a combination of Finance and Technology. It is used to describe new technology that can improve and automate the use and delivery of financial services. It also enables people to live upgraded lives through innovation. FinTech includes many sectors such as fundraising, education, retail banking, and more. It plays a major role in the development and usage of cryptocurrencies. FinTech also covers various day-to-day financial activities including money transfers, check deposits, and investment management.
Read more: FinTech Innovation: What Is In Store?
Why protect customer interest?
Customers are the primary source of growth, so they must be handled with the respect they deserve. Any product or service which is customer-centric offers the potential to attract and retain customers. Since FinTech provides advantages of speed and convenience, customers are looking at FinTech as a viable alternative. People want streamlined services with applications that are easy to adapt to. Hence, FinTech companies are outlining measures to make their services less complex and more transparent. They are focusing on creating better digital processes that their customers can personalize easily.
Customers’ convenience and requirements are paramount for FinTech start-ups. To that end, they are designing products and solutions to ensure customer satisfaction. Delivering a top-notch customer experience is the goal of FinTech companies globally.
Measures to protect customer interest
Here are some cutting-edge technologies that are protecting customer interest now and into the future:
1. IT foundation for better customer experience
FinTech startups are usually smaller in size and have a technological edge. They have a fresh canvas, allowing them to migrate easily from legacy technologies. The younger digital-first audience is attracted to their services. Larger FinTech enterprises must adopt a new IT foundation with modern technologies. Currently, FinTech customers prefer startups over established brands because they can reap the rewards in the form of better digital experiences. Though startups have a technological advantage, they must continue to focus on their capital reserves to make it through these unprecedented times.
2. Digital communication tools
The FinTech sector is based on understanding the needs of their customers. It is crucial for these companies to strategize the manner in which service providers communicate with their customers. This gets customers locked onto their services with relative ease. Communication through online media or through the content on your site can draw in new leads and build customer trust. When customer interest is protected, they will most likely return to you. In turn, they will recommend the service to their relatives and friends. These parameters are crucial if you want to keep your business afloat.
3. Embrace digital transformation
While your staff may be susceptible to coronavirus, technologies like ML and AI are immune. The financial services system must address customers’ demands swiftly and efficiently. Smart devices and the integration of artificial intelligence are a great way to achieve this. Virtual assistants and chatbots can deliver a customized experience to your customers. They perform all the activities that are usually done by customer service personnel and other executives. However, these digital solutions are faster and reflect sophistication. Digital transformation provides holistic 24/7 monitoring and automated remediation.
4. Digital banking
Previously, a customer’s confidence in a financial company depended mostly on physical infrastructure. However, COVID has changed that momentously! The new generation banking system is going all-digital to reach mobile-first customers. Digital-only banks do not need sophisticated infrastructure or higher human resource management. Digital banks are able to deliver cost-effective, robust services that match the high standards set by traditional banks.
5. P2P Transactions
P2P digital payment is quickly gaining popularity. Customers are adopting such technologies for daily use. P2P eliminates the middle layer and drastically reduces transaction costs. Digital transactions help FinTech enterprises expand their footprints and customer base.
6. Security and privacy
FinTech is an industry where the risk of financial crime is high. It is vital for FinTech companies to think over customer security while designing their consumer experience. Apparent security measures make customers feel comfortable. Customers expect rigid security from FinTech solutions along with reliability and FinTech is practicing stringent security measures to beat the competition. They are making visible efforts to handle customer data with care. To gain the attention of your customers you can make your privacy policies visible enough on your website or app. Remember, it can reflect on the confidence a company has in its security measures.
Changing for the better
It may be difficult to predict how the payments landscape will emerge in the next few years and what will be the long-term impacts on the FinTech industry. Nevertheless, it is likely to witness a transformation that can dwarf what has been achieved thus far. At such times, it is important to gain the confidence of your customers to retain them and enjoy their loyalty.
Thus far, FinTech has only been in the shadows as it were, but now it has found a home in the innovation economy globally. Millennials are more reliant on their smart devices to accomplish their daily tasks. They want the world and its conveniences at their fingertips anywhere and anytime. Given that, perhaps the future might see more interesting innovations in customer experience.
Let’s look at some opportunities for FinTech in the future:
- Companies with remote workforces are better positioned to thrive during and after this difficult period.
- FinTech gives an impetus for greater adoption of contactless money transactions.
- FinTech companies are well-positioned to find new ways to incorporate better digital solutions.
In order to capitalize on all these opportunities, you will need a technology partner to help guide you through the latest innovations. Give us a call and let’s discuss how Fingent can help you guide your business and customers to success in the post-pandemic world…
There were times when common banking activities like withdrawal of money or deposit of money meant time-consuming visits to the bank and waiting in line for hours. As inconvenient and troublesome as that was, it also meant less risk of being cheated and less chances of theft of personal information. Today, we have banking at our fingertips, with mobile banking applications. What we used to do in probably three to four hours earlier, can be done now with a few simple clicks or taps in a matter of seconds and that too from anywhere in the world if you have a smart device and the internet. But how secure are these mobile banking apps and online transactions? Could someone be stealing all the information you send out through such apps?
The truth is that there are various risks of being victims to such cyber attacks, but thankfully mobile banking apps these days are made with several layers of protection and it would take considerable effort for a thief to break in through all of that. Nevertheless, there are some things that you should do too, to make sure that your information is safe and protected while using mobile banking apps. Here’s what you should do for a safe banking experience online:
- Avoid following links and thus phishing – Phishing refers to the practice of acquiring personal and important information such as passwords, usernames and the like by pretending to be a trustworthy person or entity. It basically involves tricking someone into providing sensitive information and then using that information for malicious practices. It is in a way similar to actual ‘fishing’ as both of them involve bait to lure the victim into the trap. The bait in phishing could be a simple text message with an internet link or an email, or even a website, which could even look like your bank’s website (spoofing). You should never follow links on such emails and messages. According to the Federal Trade Commission, these are the most common ways that scammers use to steal private information from you. Legitimate companies and banks never ask for credit or debit card numbers, passwords or social security numbers and the like through emails and texts, so if you see a message somewhat like this:
“We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click the link below and confirm your identity.”
DO NOT click on the link.
- Download only the official banking app from a reputed site or store – Most leading banks offer their official applications on most smartphone app stores. For a fact, such apps are a lot more safe and secure than other apps and are definitely better than sending SMSs and emails. Banks actually go a long way to ensure that any information entered and sent across through their apps is encrypted. Hence make sure you download only the official app and only from leading well-known app marketplaces, like that of Google’s and Apple’s. Your bank will probably have information about their official app on their website, which you can use to verify the credibility of the app you are about to download.
- Avoid banking through public networks – Public WiFi networks are often not that secure. Even simple banking activities like checking your balance can make your private information vulnerable over the network. Most places that offer such WiFi or hotspot networks often advise their users not to share private information through it. It is always better to switch to your phone’s network in case you have to use your banking app while in a public network, as fraudsters and thieves could also be using the same network and may be waiting to steal your information. Some phones allow automatic switching to WiFi once they are in range of an open one. Hence, make sure you are not on a public network before using online banking apps or sharing any private, sensitive data.
- Avoid having personal data on your phone – For the same reason that your phone is the most convenient tool that you can easily carry around everywhere, it also proves to be sort of a risk sometimes. Your phone can have all kinds of information, like your calendar appointments, your passwords and your contacts. Such information can be read by other apps and other devices if not properly monitored and can be used against you. It also means you should be careful about where you leave your phone. Try avoiding maintaining private information on your phone as much as possible. If at all you have to, make sure you have several layers of protection for your phone. This will at least give you some time to lock your phone in case it gets stolen or lost.
- Make sure you have an updated anti-virus system – Keeping your system up to date with the latest software along with the latest security patches can actually help a great deal in keeping away malicious software and people. It is also good to download an appropriate, trusted antivirus program for your phone as well. That adds as an extra layer of protection to the phone as well.
Keeping all these points in mind, you can very well use mobile banking apps safely. All you need to do is be a little careful and alert. In spite of all this, if you happen to lose your phone, you have the Federal Laws to the rescue. According to CNN, you can recover your losses with a limit of $50 if you report the loss within two days of its discovery. Several banks apparently already have policies in place, that waive the liability completely. Even then, prevention is better than cure, so it’s always better to avoid theft and follow these simple steps while using mobile banking apps.