The entire banking industry ecosystem has been disrupted by new entrants willing to reshape customers experience and finance services.
FinTech companies’ flexibility and disruptive nature, position them as innovation-focused, increasing the digital user experience, considering customer’s attraction and specially the customer’s retention as the core of their marketing campaigns and operations on a daily bases.
In fact, today most of the 21-35 years old would prefer to go to a dentist, rather than go to a bank! Yes! Sounds pretty extreme, no? But the truth is that this is how complicated and struggling the bureaucratic banking processes still are, while the new generation gets accustom to receive what they want in a matter of minutes (even less). Google search criteria for a webpage load is only 3 seconds, turn on the music on your Alexa or Eco Dot takes 5 seconds, to buy something online or to apply for a services take a maximum of 1 minute. And this is the way FinTech companies try to make the finance experience feels like too. Fast loans, apply online in less than 1 minute, get approved immediately, this is no more a surprise or an exception. This becomes the rule in obtaining financial services from any of those start-ups and new-born disruptors. And customers simply love it!
After struggling for years through the long processes, interests conditions and costs, customers aim for easy, intuitive products and a friendly design and interface on first place, but they also consider highly important the fast process and services offered, as well as the accessibility 24/7, which immediately turn the odd towards the FinTechs rather than the traditional banking, among the Americas.
By providing a 24/7 access, the FinTech offering and services get automatically positioned on non-traditional channels such as mobile apps, website and social media, empowering customers and customer personalisation to a great extend. Within the next few years, mobile experience and the social media will be the primary medium to connect, engage, inform and specially understand customers’ needs and desires (from the mass customer targeting to the particular individual) in order to come up with more personalised solutions and products, and in many cases a friendly personalised customer attention too.
Some of those disruptors even go beyond and above what most of us we are used to receive as customer experience. We have the example of the FinTech www.Panacredito.do who since last year came up with the innovative solution to improve even more and amaze their customers by offering the usual online title loans, but now with a “home delivery” to close the deal. If the customer desires so, they can complete the loan process right where they are. “It is a financial institution very different from what we are used to seeing” says Ing. Juan Geronimo Perez about his recent experience with the FinTech Panacredito. “It is a company that believes in the client, it provides facilities, it looks for different ways to give good service, they always assist you, they give you the option to go to your home to do business and to close the final deal. I am pleased by the personalised and professional treatment that they offer.”
Consumer banking generally speaking will continue to be the epicentre of disruption over the next five years. Most bankers already see a risk that 64% of personal loan and 50% of personal finance services are moving to FinTech companies, while they, as traditional banking stay behind in the process to innovate. We even observe that bankers are turning to FinTech companies to engage in partnership and collaboration (54% vs. 42% last year), converting FinTech companies into more trustful and reliable entities, gaining customer’s trust who consider them every time less risky. In May this year, for example the personal loans Fintech www.LendingPoint.com got secured their operations by the Guggenheim Securities with up tp $600 million committed credit facility with the investment banking institution for a second time in less than 1 year.
It is true that traditional bankers see the FinTech fast development and market share growing as a challenge, but this also helps and motivates them to eventually improve and expand their services and operations through digital solutions as well, however, unfortunately their big organisational structures and long processes do not help into letting this happen at a faster pace, which positions FinTech companies as faster runners in this customers-attention competition.