Over the past few years, we’ve seen an acceleration of the transition from traditional banking and investment services to service-on-demand financial alternatives. This increase in demand and transition in thinking has given birth to a whole new generation of FinTechs and disrupted how the big financial institutions innovate. Innovation in cloud computing and security has enabled FinTechs to provide boutique services to customers who prefer mobile as the key engagement channel. This has required traditional financial institutions to increase their fintech investments considerably and compete with startups to offer financial services products faster and more efficiently.
With growing customer demand and expectations, more and more financial institutions are embracing the agility and flexibility promised by fintech solutions. Here are some key fintech trends that will lead to innovation and drive digital transformation.
1. Transparent and Seamless Experiences
Customers expect accessible signup experiences built on intuitive platforms that will guide them through the process. Additionally, customers are wary of the fine print and would prefer to understand fees and terms clearly and transparently during onboarding.
2. Leverage Data to Anticipate Customer Needs
Customers don’t want to be sold products. Instead, they want financial services companies to understand and anticipate their needs. Nothing shows you care more than making recommendations to improve their financial well-being and improve their lives.
3. Automation Across Operations
Reducing time and cost through automation drives improved experiences. Customers expect rapid results and low fees that require operations to leverage automation as much as possible.
4. Customize Key Insights
Allowing customers to create custom experiences by selecting the metrics that are important to them drives enhanced engagement. Finding creative ways to leverage analytics is the next wave in financial engagement.
5. Subscription and Usage Models
There has been a shift in customer preference from the conventional fee-based model of banks and traditional investment companies to monthly subscriptions. FinTechs adopting subscription models have seen consistent ARR (Annual Recurring Revenue) growth while traditional financial services companies lose market share with fee-based revenue models.
In line with the evolving fintech trends, more and more banks, credit institutions, and lending firms are relying on IT teams to innovate and enable better services to maintain the brand reputation and attract new customers. This is made possible by relying on technology, financial institutions are saving money and reducing operational errors, protecting customer privacy, and staying connected to the customer.
Contact our fintech team to stay ahead of the curve in this volatile market.
