Fintech: Enabler for Business Growth and Improved Customer Experience
Pandemic-driven change in consumers behavior resulted in a boost of fintech
applications. More and more consumers turn to digital services, for example
use an app to make a financial transaction, to minimize the risk of virus
transmission. In 2020, 92% of all mobile transactions were made via Apple
Pay in the US.
Date: 24 May, 2022
Time: 5 min read
Organizations across various industries have to innovate in order to compete
in the changing market. Some have already started to revolutionize their
business operations. Migrant Help together with B4B Payments has
launched a completely digitized process to receive prepaid cards and removed
the need for additional meetings.
Innovative technologies used to provide financial services are widely
used in today’s business environment. Let’s look at the key fintech applications
across the industries.
One of the most widespread payment technologies is using smartphones to
conduct transactions. Contactless payment has gained even more significant
influence with the beginning of the pandemic.
Many industry players such as Target and Starbucks have enabled mobile
payments before pandemic-driven adoption. Vitamin Shoppe, a nutritional
supplements retailer, and others rushed to launch contactless payments
after. Looking ahead, the trend of digital payments that started long ago
is likely to grow further.
The traditional loan application process involves customers’ visits to
a bank to submit the request and waiting time for the approval. Fintech
has transformed and simplified this time-consuming scheme. Nowadays, a
customer can upload necessary documents and send the application online.
The insurance sector also uses digital tools to enhance customer experience
and optimize business operations. Thus, data analytics streamlines the
process of matching a customer with a best-fit policy and an AI-driven
assistant helps to settle a theft claim within minutes.
Common tips for successful fintech initiative
Bringing your fintech idea to life may come as a challenge. However, there
are several pieces of advice that can smooth your way towards success.
Here are some of them:
Know your product - define what value your product brings
to consumers. Collect all the available data - study the market and competitors,
learn your strengths and weaknesses, understand the needs of your target
audience - and tailor your product accordingly. The more you know about
your product, the bigger are chances of your success.
Choose a reliable vendor or team - it is vital to have
a high-skilled specialist that can build quality products. You can either
hire an in-house team or outsource the development, but make sure to conduct
interviews, and check the previous experience and qualifications of each
Design user-friendly interface - first impressions about
your product are 94% design-related. The appealing
and easy-to-use design of a product helps to fulfill users’ preferences
and improve conversion rate.
Test and learn - develop a minimum viable product (MVP). With
its help, you’ll have a chance to analyze users’ interactions and gather
feedback. Your customers are the part of the team that can make your product
better by pointing out its weaknesses. Thus, you can improve weak points
and add some additional features if needed.
Moreover, MVP can be launched much earlier than the final product. Thus,
it allows you to modify the code. At the beginning of the process, it can
be done with fewer obstacles and more quickly as compared to the final
stage which in many cases would require complete product redevelopment.
Key pitfalls and how to avoid them
Fintech companies face a few common challenges, such as data security
and regulatory compliance.
Users’ privacy and data security are of paramount importance. And with
growing cybersecurity risks organizations should be ready to mitigate them.
Cybercriminals target even large institutions. For example, in 2020 Pepperstone, an agency execution
broker, fell victim to a cyberattack where customers’ data was stolen.
There are a handful of regulations that financial institutions must comply
with. In some cases, it might strain an organization's resources, but companies
have to learn to navigate and evolve regulations into opportunities.
There’s no all-size-fits-all approach that can leave challenges behind,
but there are a few things that can help you to mitigate the risks.
To secure the data, implement a multi-level authentication process. Consider
biometric authentication methods (fingerprints, voice biometrics, etc.).
These innovative methods guarantee you enhanced security and keep seamless
interactions with your product.
Putting together a team of professionals will also contribute to the development
of high-quality and safe products. It’s challenging to hire a strong in-house
team, so outsourcing options are usually the
most popular. It allows you to save time on the hiring process and train
new specialists while reaching your goals.
With its diverse use cases among various industries, fintech is likely
to grow into a larger market share. However, building a solid fintech solution
is quite a challenging task. Make sure that you understand your product,
conduct market research, and implement all the features your target audience
Seeking a professional to help you manage all the risks and guarantee
smooth development? Get in touch with us!