Predictions: Fintech Apps
2023: The Year of Connectivity enhancing customer experience
One key trend will drive the most interesting developments in the FinTech sector in 2023: the emergence of the connected customer, whose worries, demands, and desires will fuel product development and influence the overall vector of the financial industry, argues, Anna Oleksiuk, Fintech Business Leader, Intellias.
In days past, the role of the traditional bank was relatively simple: keep our hard-earned money safe and enable us to deposit, withdraw and spend it. In recent years, the emergence of online challenger banks and the explosion in FinTech companies has opened the door to a new world of responsive, intuitive and cost-effective banking in real time.
At the same time, consumers have become more familiar with cutting edge multi-channel experiences, courtesy of companies such as Amazon, Uber and Just Eat. These apps transformed what once were time-consuming and complicated processes into an easy one-click purchase. Today, most people have built a comprehensive ecosystem of apps to cater to our every need, from shopping to transport to health and food delivery. In 2023, we expect to see more advanced FinTech apps take their place in this ecosystem.
The rise of the connected generations
Intellius’s research suggests that millennials and Gen Z consumers will hold the largest share of disposable income for the coming decade. This target demographic expects to see their financial providers not just as money repositories but also as friendly advisors who can assist them in meeting their financial objectives. Beyond millennials and Gen Z, FinTech adoption has risen around the world:
- 64% global consumer adoption
96% consumer awareness of at least one transfer and payment FinTech service
75% consumer use of a transfer and payment FinTech service
50% consumer use of an insurance FinTech service
That’s why companies are putting customer experience (CX) at the heart of their business. But, maybe you have heard this claim before – after all CX has been a hot topic for years. True, however, despite the significant progress made in creating easy, intuitive ways to manage money, from opening an account to planning for retirement, the challenge now is for FinTech companies to translate that fine-tuned CX from single-purpose to multi-purpose financial instruments.
Formula for success
At Intellias, we have designed a simple formula to help this process: Machine Learning (ML) + User Experience (UX) = Advanced FinTech Customer Experience (CX). Put simply, the connected customer wants financial services that are simple and intuitive; seamless; engaging and interactive; capable of addressing multiple money matters; customised to meet their needs; and built upon a consistent multichannel experience.
The Covid-19 pandemic turbocharged the adoption of many FinTech services and new offerings from more traditional banks. Now is the time to build on these transformational products and continue to create smarter, simpler and broader services with greater reach.
Wider industry trends
In 2023, expect to see a greater number of marketplace banks, so-called super-apps, which provide multiple services including payment and financial transaction processing and many cross-industry partnerships – all targeted at the connected consumer.
Bundling will continue to be popular as newer FinTech companies pursue niche use cases, such as SME banking, bill consolidation and start-up credit cards, while more established companies strengthen their core offerings with extra products and services.
Collecting, storing and analysing data will be as important as ever. FinTech companies of all sizes should concentrate on realistic machine learning and AI use cases, enabling predictive analysis which can measure a customer’s current position and their likely future financial aspirations. This enables the companies to design the best customised action strategies for each customer, based on AI-driven personal finance management.
Tips for success
The gamification of many financial apps has made the process of investing, budgeting and saving entertaining and engaging. Now is the time to build their customers’ skills even further. It is no secret that many people have difficulties managing their money effectively so there is space for FinTech companies to help them and, in turn, grow their own business.
Introduce powerful tools that help customers proactively learn different elements of the financial world. Provide analytics, calculators, predictors, and estimators to clearly demonstrate their current standing and what it will take to meet their objectives. AI-enabled assistants will help close that gap and boost customer knowledge.
Make sure a product portfolio aligns with customers’ regular needs and anticipate how these might change as they grow. Advanced AI can now proactively predict customers’ desires and capture their pain points with great accuracy. What many FinTech companies are lacking right now is the ability to pitch the right offer to the right customer at the right time.
If FinTech companies bear these in mind, they will be well set to find a place in the connected financial ecosystem and at the leading edge of innovation in 2023.
Main image: Anna Oleksiuk, Fintech Business Leader, Intellias