“Any bank or fintech startup that is unable to provide the service that the customer is looking for will perish.”
Nowadays, customer experience is firmly in the spotlight. This has perhaps been even further increased due to the coronavirus pandemic and the need to access services online, with companies needing to adapt to the change of environment. Those that don’t, could see themselves getting left behind.
When it comes to banking, it was common for users to choose the same bank as their parents and beyond the high street options there has been little else to sway us. That is until the surge in digital banking.
This innovative approach to managing our finances has put fintech firms on top when it comes to customer care, with their ability to adapt processes for even better customer experience. This is somewhere that traditional banks are failing, often showing that they don’t seem to care as much about customers as the enthusiastic digital alternatives.
According to World Fintech Report 2020 by Capgemini, 40 percent of Gen Z customers are unsatisfied with the existing services at their current banks and are ready to leave within the next year as they simply don’t feel catered to.
Fintech is all about user-centric services and control. Alongside offering a suite of conventional banking services with increased convenience, an array of non-traditional banking products are available to enable customers to gain better control of their finances.
One particular stand-out example of innovative spirit in fintech is German neobank N26. The challenger bank’s app enables customers to set withdrawal limits, easily update travel plans and freeze or unfreeze cards if necessary.
N26 customers are also able to access real-time statistics relating to expenditure and they are given complete autonomy to organise financial transactions into categories, such as monthly bills or holiday savings.
Traditional financial products aren’t left behind either. Joining accounts are available boasting a tech twist, with Shared Spaces launched in the US last year. This feature works as an alternative to joint accounts, allowing added flexibility and appealing to groups of users that may temporarily require a shared account, for example housemates splitting bills or the cost of a gift for a mutual friend.
Fintech is breathing life and innovation into an age-old industry and it isn’t slowing down any time soon. With a new approach to customer service, digital banks are able to meet current customer expectations by leveraging data insights and offering a personalised experience, along with a fully digital solution.
This digital alternative to banking has shown that all things finance can be lightning fast, mobile-friendly and affordable. Alongside this, apps are designed to be flexible, user-friendly and personal, with communication tailored to individual needs. When you look at this, it’s very easy to see why people are switching.
Aside from all of the fancy features, fintech has opened a whole new world of accessibility. Access to finances is available 24/7, with new customers even able to sign up for an account using a video, rather than filling out long application forms. Convenience is key when it comes to the customer journey and the ability to open an account with a challenger bank in a matter of minutes, rather than taking the traditional route of speaking to someone in-branch, is an attractive feature as we become more digitally savvy.
As the fintech world continues to evolve, we’ll continue to see these firms embrace new and exciting technology, from AI and biometric to facial recognition that we have on our smartphones. The ‘change or die’ statement has never been so true — when competition is fierce one needs to change or make way for the more adapted players.
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