What is FinTech?
In the current world of portmanteaus and abbreviations, it is only normal for the young technology user to guess or already have an idea of what FinTech stands for. But don’t worry if you’re not one among these lads, we’re here to discern and interpret the concept of FinTech for you, in this article.
FinTech, as the word subtly suggests, is the amalgamation of Finance and Technology. To go the more simpler route, FinTech is defined as “Computer programs and other technology used to support or enable financial or banking services”, according to the Oxford dictionary. Wikipedia defines FinTech as “Financial Technology as a line of business based on using software to provide financial services”.
Vinod Sharma, the CTO at Ascend Money states the following in one of his blogs that “Financial technology, also known as fintech, is an economic industry composed of companies that use technology to make financial services more efficient. Why it is so inherently difficult to define the concept of Fintech, is because definitions change over time. Alternatively, traditional banking organizations are hindered by legacy operating systems, capacity to innovate, agility and technology expertise.”
The Spread & Embrace of FinTech
According to a report by Reetu Raina, Organization Development and Learning Partner at Amdocs India, it is highly indicative that by 2020, Millennials or Gen Y are projected to be 50% of the workforce and by 2025, this number is expected to leap to 75%. Such crazy numbers sure have a say of their own in the FinTech landscape, or so we’d like to believe.
As discussed already, the older generation ‘banks’ heavily on traditional financial and banking methods & services mainly because of reliability and their disconnectedness with technology in general. But with more immersive and innovative ways making their way into the financial space, it is time for the Traditionalists and Baby Boomers to adjust their sails accordingly.
FinTech as a domain of its own relies on the ease of experience that’s based on the foundation of a customer-centric approach. To top it off, FinTech companies see the failures of traditional banking organizations as an opportunity to pounce on the modern market of millennials. These conventional organizations are not ready for a technological revolution yet which makes them incompetent to keep up with the needs and demands of the younger generations. As they say, one man’s downfall is another man’s come up. Following years will prove to be vital in determining the complete adaptiveness to FinTech-centric economic solutions.
Customer Experience in FinTech
According to entrackr.com, Google Pay was the most downloaded FinTech app across the world in August. The UPI-enabled Digital Payments app was downloaded 10 Million times in October 2020, of which 77% or 7.8% installs came from India, a database sourced by Censor Tower said. In the top-10 list, home-grown apps PhonePe and PayTm claimed the 4th and 6th spot respectively during the period.
The outbreak of the Covid-19 virus in the first quarter of this year had put stringent checks on the way people interacted with each other. Social Distancing norms were imposed in the tightest during the peak period of the virus. This encouraged a lot of people directly to resort to online modes of payment both to avoid risk of getting infected and to experience faster check-outs. The potential risk in exchanging currency was minimized considerably, if not completely.
The widespread approach in prioritizing online payment methods amid the pandemic was seen by tech-giants such as Google and other indigenous app makers. Introductory offers and immersive gamifications were made inside the apps for users to stick around long hours. Ever considered opening your banking/payment application on the phone to play games?! Neither had anyone else, but it’s what it is!
From hitting boundaries and sixes in the cricket mode to travelling to multiple states virtually to maintain a high-score, Google Pay has well beyond succeeded in keeping the consumers engaged through such exciting updates. The trick is to leverage consumer involvement and turn it into an opportunity to earn — more downloads! More downloads mean more popularity and you know what follows after this stage!
Implementing Good CX in FinTech
While businesses work their way around fortifying the offerings of technology in the financial landscape, it is essential for the consultants and designers to ensure the aforementioned engagement is not compromised upon. Consumers are more likely to use your fintech offering and refer it to their family and friends IF it provides them with easy options to take care of their finances.
Imagine building an eCommerce platform with a sleek design, have people trust you and get them to buy your products and right then… there is an issue with payments! There are unsolvable server issues when the customers hit the ‘Pay’ button or the increasing risk of card data theft. These scenarios induce anxiety in your hard-earned consumers. To avoid that, it is imperative for you to do your research and pre-work well in advance.
Over To You
Fine FinTech solutions often come packed as seamless experiences that involve transacting money. For businesses and brands, it is now more than ever that the responsibility of delivering a hassle-free customer experience especially in the payments>check-out stage has illuminated.
Being all ears to your customers and constructively building on their feedback to stay on top of your game is a worthwhile pursuit for both payment providers and merchants that accept payments on their websites and portals.
