For years, the financial technology (fintech) industry has been on an upward trajectory, with no signs of slowing down.
McKinsey’s recent analysis indicates an even brighter future for the sector, with fintech’s revenue growth predicted to outpace traditional banking significantly in the next four years. While the firm expects banks to see a steady 6% annual increase, fintech companies could experience a much more robust growth rate of 15%.
This rapid growth is also evident in the rising number of fintech unicorns – private startups valued at over US$1 billion. The sector has increased from 39 unicorns in 2018 to over 272, with their total valuation soaring to approximately US$936 billion, showcasing their growing influence in the global market.
Most of this growth comes from customer demand for simple, accessible, secure financial solutions. People have grown tired of legacy banking systems, developing a preference for fresh brands and digital service providers that promise better experiences.
But how can fintechs ensure that this customer experience (CX) is good enough to attract—and, more importantly, retain—today’s demanding financial service consumers?
Let’s look at the trends and challenges shaping the sector’s future of customer service and support and explore how the four levers of people, strategy, innovation, and analytics can help fintech brands scale CX alongside rapid growth.
Fintech Trends Shaping the Future of CX
The fintech industry faces several CX challenges introduced by new service options, technologies, and regulatory frameworks.
For example, mobile payments are rapidly increasing in popularity, requiring CX agents to be proficient in mobile payment technology and troubleshooting while possessing knowledge of security and fraud issues to handle customer concerns effectively. Fintechs will also need to invest in educating customers about the use and benefits of digital wallets and mobile commerce, a resource-intensive process for agile, digital-native companies.
The growing popularity of Buy Now, Pay Later (BNPL) options poses more challenges, demanding a more sophisticated and knowledgeable approach from customer support teams to maintain high-quality CX. As BNPL options proliferate, contact centers may see a surge in inquiries related to payment terms, eligibility, and billing issues, which could lead to longer wait times and increased pressure on CX agents. Plus, the potential for disputes or misunderstandings regarding payments and charges could improve, so fintech contact centers will need innovative, efficient systems and well-trained staff to handle these situations effectively and provide accurate information across various services and products.
Open banking API integrations are also on the rise, leading to more complex customer inquiries, heightened concerns about data privacy and security, and a need for CX teams to adapt to the new technology and workflows that open banking brings. Moreover, open banking APIs operate under strict regulatory frameworks, posing a challenge for contact centers to stay compliant while addressing customer needs efficiently.
Another new frontier in digital finance is Central Bank Digital Currencies (CBDCs). Governed by central banks, these digital currencies contrast with decentralized cryptocurrencies like Bitcoin, opening up opportunities for fintech companies in several industries. Yet, many customers need to become more familiar with how CBDCs operate, requiring fintech contact centers to support and educate them on the new payment systems and technologies involved.
And with the predicted rise of embedded finance, AI-driven personalized services, decentralized finance, and more, the potential for massive CX disruptions looks to transform fintech for years.
Let’s find out how a well-trained, accessible, and empathetic team of human CX agents—or, as we call them, customer champions—can set fintech brands up for success.
With their empathy, adaptability, and specialized knowledge, human CX teams can provide personalized, intuitive support. This human connection is often the key to customer loyalty and can differentiate a fintech brand in a competitive market.
People: Reassurance and Empathy for Fintech Customers
Human customer champions are essential for building trust and understanding among fintech customers by educating and reassuring them on a personal level.
With their empathy, adaptability, and specialized knowledge, human CX teams can provide personalized, intuitive support to help customers get the most out of emerging financial technologies and services.
This human connection is often the key to customer loyalty and can differentiate a fintech brand in a competitive market. As BNPL, open banking, CBDCs, and more usher in more complex customer transactions, it could potentially lead to confusion among consumers and more frequent contact for clarification. Fintech brands prioritizing these interactions with readily available first-line support teams will make a huge positive impression on customers.
Still, the complexity surrounding these emerging trends requires customer champions to have a deeper understanding of processes and policies, so regular training and development practices are critical for customer champions to provide informed and reassuring responses.
As fintech services evolve and become more intricate, it’s crucial that customer support remains relatable, effective, and deeply attuned to individual needs and concerns. Yet, even with a human team of customer champions on board, achieving CX wins without a compelling strategy is tricky. Here’s why.
Strategy: Roadmapping Fintech CX and Customer Journeys
Brands with the best approach to CX focus on developing a strategy that addresses customers’ current needs and is resilient and adaptable to future challenges.
A great CX strategy starts with specialized training for your customer champions. Given the complexities of emerging fintech services and innovations, getting your teams up to speed and knowledgeable on the technical aspects, regulatory frameworks, and related privacy concerns is critical. Above all, your agents need to be well-versed in explaining these concepts to customers who might be new to digital finance.
Your customer support teams must also champion a customer-first mentality, which involves understanding the customer’s journey, empathizing with their concerns, and proactively offering solutions. Fintechs that include customer journey mapping, regular feedback sessions, and customer satisfaction surveys in their CX strategies will be better equipped to gather the insights required to refine their approach.
As fintech is a heavily regulated industry, contact centers must stay agile to adapt to regulatory changes. Again, this involves regular training sessions and updates to ensure compliance and inform customers accurately about how these changes might affect them. And, of course, CX strategy is only complete with innovative technologies and advanced data analytics, two more essential levers to customer experience enhancements.
Innovation: Technology Solutions for Future-Proof Fintech CX
Fintech companies have always been at the forefront of innovation, and now, thanks to artificial intelligence (AI) and machine learning (ML) technologies, they can also revolutionize their approach to CX.
These advancements have revolutionized banking processes, including payments, investments, and risk management. However, AI’s influence extends to improving fraud detection by analyzing vast transactional data and identifying patterns indicative of criminal activity, ID theft, and more, leading to more trust, safety, and security for customers.
More directly, implementing advanced technologies like AI-driven chatbots and CRM systems can streamline the customer support process on the front lines, offering 24/7 answers and even personalized, tailored responses. Fintechs should direct these to tools to handle routine inquiries, freeing human agents to focus on more complex customer issues. However, it’s crucial to maintain a balance where technology enhances rather than replaces the human touch.
Omnichannel support is a foundational element of innovative CX delivery. Fintechs that provide customers with multiple channels for accessing support, including phone, email, chat, and self-service portals, allow people to choose the most convenient channel for them, reducing the friction associated with trying to resolve issues.
CX innovation is not always about technology; fintech brands can also innovate in their overall approach to customer satisfaction. For example, a fintech app might suggest a financial literacy tutorial to a customer who has recently opened a new savings account. Today’s consumers place great value on this kind of proactive, personalized experience.
But, personalization is only possible with a comprehensive data analytics strategy.
BPO partnerships offer a synergy that allows fintech companies to excel in delivering personalized, efficient, and future-ready customer experiences, keeping them ahead in the competitive and ever-evolving fintech market.
Analytics: Personalizing Fintech CX with Data
From chatbots to human agents, every interaction is an opportunity to strengthen your brand’s relationship with your customers. Yet, understanding customers through data analytics takes things one step further, offering a level of personalization that makes CX feel tailor-made for each and every customer.
By analyzing data from customer interactions, fintechs can first figure out customers’ habits and preferences. For instance, if someone’s consistently paying for groceries with a mobile app, fintechs can catch this pattern and offer personalized services or advice, making the customer feel understood and valued.
Predictive analytics takes this a step further, giving brands the ability to foresee potential problems and sort them out before they even happen, making the customer’s journey smoother.
Segmenting customers is another smart move. By breaking down the data, fintechs can group customers into smaller categories, each with its own needs and preferences, leading to more targeted and relevant marketing efforts and customer interactions.
Internally, this data helps fintechs train their customer champions more effectively. With insights from data, agents can anticipate common questions and concerns, leading to quicker and more efficient resolutions.
As fintech companies leverage data to understand and anticipate customer needs, they’re setting a new standard for customer experience: more intuitive, responsive, and, most importantly, personalized.
BPO Partnerships: Catalyzing Fintech CX Success
Fintech companies will no doubt continue to experience rapid growth and fluctuating demand, which means establishing a scalable, adaptable customer support strategy. From implementing flexible staffing solutions and cross-training agents to using technology to manage workload peaks effectively, great CX means juggling endless responsibilities.
With their experience blending people, strategy, innovation, and analytics, Business Process Outsourcing (BPO) providers like Inspiro can help fintech brands lighten the load and accelerate their CX wins amid the industry’s rapid growth.
BPOs bring a wealth of human expertise, crucial for managing the nuanced aspects of fintech services. Their teams, deeply versed in fintech trends, can handle intricate customer queries that range from navigating new payment methods to understanding regulatory changes. This level of expertise is invaluable in maintaining high-quality CX in an industry where customer trust and understanding are paramount.
Plus, the fintech industry recognizes that employee satisfaction is integral to organizational success. Amid efficiency drives and potential layoffs, there’s a growing realization that enhancing the employee experience is crucial. BPOs like Inspiro place paramount importance on the well-being of their teams, regularly collaborating with their client partners to provide the best possible employee experience.
Strategically, BPOs contribute significantly to refining and streamlining customer service operations. They implement efficient processes and best practices that enhance operational efficiency, directly impacting customer satisfaction. In an industry marked by rapid shifts, such as fintech, having a strategic partner that adapts swiftly to changes ensures that fintech firms remain agile and customer-centric.
In terms of innovation, BPOs like Inspiro integrate cutting-edge technologies to reshape the CX landscape. From AI-driven chatbots that provide round-the-clock customer support to sophisticated omnichannel platforms that offer customers flexibility in communicating, the solutions in a BPO’s arsenal enable fintech companies to provide personalized and efficient customer interactions. Not only that, but BPOs also leverage chatbots as tools to aid employees in their work, thereby improving their overall experience and, in turn, positively impacting CX.
Lastly, while analytics requires companies to invest in analytics tools and staff training to interpret and use the correct information, BPOs already have these tools and trained teams in place. As such, BPO partnerships open up the ability to analyze customer interaction data and tailor CX strategies, ensuring that each customer journey is as unique as the individual.
By combining human expertise with strategic processes, innovative technologies, and data-driven insights, BPO partnerships are an effective solution for fintech brands looking to enhance their CX. These partnerships offer a synergy that allows fintech companies to excel in delivering personalized, efficient, and future-ready customer experiences, keeping them ahead in the competitive and ever-evolving fintech market.
