For financial institutions of all sizes, winning customers comes down to one thing: making them feel valued. Yes, this may be obvious, but companies don’t always execute this well. According to a report by Resonate, when it comes to consumers considering switching financial institutions, “Not feeling valued by their financial institution” was the number one reason.
Within the FinTech space, there has been a massive rise in new players. From wealth management applications like Wealthfront and Betterment, investment applications like Robinhood, to challenger banks such as Varo, Starling Bank, N26, and NU Bank, these companies are gaining new customers (or taking them from other financial institutions) at breakneck speed.
Starling Bank, has over 460,000 customer accounts and expects to hit 1M by the end of this year. N26 has grown to over 3.5M customers in just a few years. Robinhood has 6M customer accounts and in 2018 they passed E-Trade in number of users. Robinhood was founded 6 years ago, E-Trade 37 years ago.
Why are millions of customers flocking to these FinTech offerings? Because they put the customer first. They make their customers feel valued and do so by providing:
- Better customer service
- Superior product offerings
- Amazing customer experiences
According to a new study by FIS, The 2019 FIS Performance Against Customer Expectations (PACE), which surveyed over 1,800 U.S. consumers, challenger banks have overtaken traditional banks in customer satisfaction. Digital banking and online communication is the norm for most customers (73% of all consumers interactions in the U.S. is done digitally according to the same study), but customers expect more. They want the same type of amazing experiences they receive with other service providers. 60% want to receive their financial products through a single app or online portal, per EY’s third biennial FinTech adoption trends survey. Furthermore, customers demand superior products – both from a user interface and functionality as well as helping them keep (or put) more money in their pockets. Minimal or no fees are almost standard for these new applications along with leveraging AI and/or unified data to provide deeper insights and improved decision making.
This isn’t new information for financial institutions. In a newly published report, Bank Director’s 2019 Technology Survey, 78% of the respondents said improving customer experience was their top objective. But how do organizations keep up with this rapid innovation?
Whether you are a startup looking to build the next Robinhood, start a challenger bank, or financial institution that wants to update/create new financial applications, Hydrogen can help. Hydrogen accelerates financial innovation by enabling organizations to quickly build hundreds of applications from a single platform. This powerful platform does so by unifying data from a variety of sources, integrating with numerous third-party applications, leveraging a powerful toolkit of configurable APIs, and implementing financial analytics to power business logic.
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