Organizations in FinTech are increasingly met with customer communication challenges due to their rapid growth.
What are these challenges, and more importantly, how can you solve them? We’ve asked an expert: FinTech consultant Ellen Cibula.
Financial technology, or "FinTech," is a blanket term to describe any company that provides financial services using software and modern technology. The industry has exploded in recent years as more people opt for digital-only banking options. With this growth comes challenges, one of which is customer communication. In such a fast-paced and ever-changing industry, keeping up with the latest trends and ensuring that you always keep your customers in the loop can be challenging.
For example, payment processors face unique challenges when communicating with customers. In addition to the standard communications about features and benefits, they must also provide clear and concise information about payment processing options, fees, and security. They also need to be able to answer customer questions quickly and effectively.
However, the fast-paced nature of the fintech industry can make it difficult for payment processors to keep up with the latest customer communication trends. As a result, they may not be able to provide the level of customer service that their customers expect.
In this blog post, we'll explore six of the most common customer communication challenges that FinTechs face and offer suggestions for overcoming them.
1. Establishing credibility and trust
One of the most important—and most challenging—things for a FinTech is establishing credibility and trust with its customers. Because the industry is still relatively new, many people are understandably skeptical of entrusting their finances to a company that doesn't have a long track record.
One way to overcome this challenge is by being as transparent as possible in all your communications with customers. Own up to it immediately when something goes wrong, and do whatever you can to make it right. Building a solid rapport with your customers will go a long way toward establishing trust.
When it comes to FinTech, it's important to remember that technology is only part of the equation. You also need to invest in people to establish customer credibility and trust. That means providing excellent customer service and clear communication at every step. Unfortunately, companies often focus solely on technology and forget about the people. As a result, they end up with unsatisfied customers and a tarnished reputation. If you want your FinTech company to succeed, ensure you always keep sight of the importance of customer service. It's the key to building a loyal and trusting customer base.
2. Securing customer data
Customer data security is of the utmost importance in the financial technology (FinTech) sector. Businesses in this sector must protect sensitive information when communicating with customers. Protecting data may include encrypting communications, using secure servers, and verifying customer identities.
Another way is to use a zero-trust architecture. This approach assumes that all users are untrusted and requires them to go through multiple authentication layers before accessing data. This approach makes it much more difficult for hackers to access sensitive information.
Taking these precautions helps prevent data breaches and protects customers' privacy. Additionally, it builds trust between businesses and their customers, which is essential for long-term success in the FinTech industry.
3. Maintaining user retention and user engagement
For any FinTech, providing excellent customer communications is essential for success. However, this can be challenging, as you need to find ways to keep users engaged and interested in your product or service. User experience is vital here, as users with a positive experience with your communications are likelier to stick around.
You can do a few things to improve user experience and engagement in your customer communications:
- Create a seamless customer journey, from the initial sign-up to ongoing support and communications.
- Keep customers up-to-date with new features and benefits.
- Ensure that your communications are clear and concise. No one wants to wade through a long email or read a complicated FAQ section.
- Focus on delivering value. Your communications should provide users with information or resources that they will find helpful.
- Be responsive. If users have questions or concerns, address them quickly and effectively.
By following these tips, you can use effective communications to engage your users, leading to higher user retention.
4. Addressing customer concerns quickly and effectively
Another common customer communication challenge for FinTechs is dealing with customer concerns quickly and effectively. Because the industry is heavily regulated, businesses often have strict rules and procedures they must follow when addressing customer concerns. Unfortunately, these regulations can sometimes make it difficult to provide a quick resolution.
It's important to remember that customers don't care about why you can't do something; they want their problem resolved as soon as possible. As such, it's essential to be responsive to customer concerns and keep them updated on their issue until you fix it to their satisfaction.
As anyone who has ever worked in customer service knows, managing a high volume of customer inquiries can be overwhelming. Fortunately, several tools can help free up customer service representatives (CSRs) by handling simple queries.
One way to free up CSR resources is to use live chat and chatbots for simple questions. These can help reduce the number of calls that come into the call center and help resolve issues more quickly. Chatbots can be programmed to provide answers to common questions and can also be used to route customers to the appropriate department or agent.
You can also use live chat to resolve issues and more efficiently handle customer inquiries. By using live chat and chatbots, businesses can reduce the number of calls that come into the call center and free up CSR resources for more complex queries.
5. Managing multiple channels of communication
You need to have a presence on multiple channels to reach all your customers where they are. This includes traditional channels like email and newer channels like social media, live chat, and chatbots. Having too few channels can limit your reach and impact.
But more is needed than just multiple channels; you must provide a cohesive communication system. In FinTech, providing omnichannel communications is essential to ensuring a positive customer experience. By definition, omnichannel communications allow customers to reach you through multiple channels enabling them to choose the most convenient medium at any given moment.
An omnichannel approach also allows FinTech companies to target their communications better. For example, suppose a customer reaches out to customer support through live chat. In that case, the company can follow up with that customer through email or push notifications to ensure they get the assistance they need.
By using multiple channels, FinTech companies can ensure that they address the needs of every customer. In addition, omnichannel communications help to create a seamless customer experience by ensuring that all tracks are integrated and operate cohesively.
As a result, customers can quickly move from one channel to another without losing any information or having to start over. In today's fast-paced world, providing omnichannel communications is essential to keeping up with customer expectations and maintaining a competitive edge.
6. Lacking personalized communications
One of the challenges faced by FinTech companies is the need for more personalization in customer communications. This can be a significant issue because it can make customers feel like you do not value them as individuals.
However, there are ways to overcome this challenge by using artificial intelligence to personalize services. For example, you can use AI to analyze customer data and identify patterns to tailor communications. This can help FinTech companies create a more personal relationship with their customers, ultimately increasing satisfaction and loyalty.
With so much data available, there's no excuse for not personalizing your communications. Your customers will appreciate feeling like you know them and their needs.
Communicating effectively with customers is essential for any business but can be especially challenging in the fast-paced world of FinTech. It's necessary to maintain a consistent brand voice across all channels. Your customers should be able to easily recognize your communications, no matter which channel you're using. Keeping these six tips in mind ensures that your customer communication strategy is on track and delivering results.
➡️ If you want to learn more, read our Guide on enabling digital customer engagement and team collaboration in Financial Services.
Ellen Cibula is the founder of EllenCibula.com, where she helps businesses with financial technology, security, and payments. She has over 15 years of experience in the financial technology industry.