Fintech (financial-technology) is helping reshape the financial industry in a myriad of ways.
It has made the world of banking far more accessible. For instance, you can now open a bank account online without the need to visit a bank. It has also simplified the process of making payments. You can turn your smartphone into a digital wallet that can be used to make payments at your favorite local stores.
Other fields fintech is transforming include investing, insurance, and wealth management.
Fintech is relatively new as a common term; however, incorporating technology in finance has been around for quite a long time — it's arguably in recent years though that the industry has soared to greater heights.
In 2019, 3 out of 4 consumers used fintech services to transfer money. The industry has witnessed explosive growth, from 12,000 fintech startups in 2019 to over 26,000. Last year, the industry’s market value was slightly over $132 billion, and by 2026 is expected to reach $324 billion. Some of the companies operating in the fintech space include Visa Inc. V, Block Inc. SQ, and MercadoLibre MELI.
What Is The Biggest Problem In Fintech?
As these companies scale, their resources may be stretched more thinly, thus reducing the standard of customer experience delivered — one of the key drivers of company growth. Research shows that up to 75% of customers are willing to switch brands in search of a better customer experience, which can cause a catastrophic impact on revenue growth.
One of the customer experience challenges that fintech companies face is complying with local and international know-your-customer (KYC) requirements. KYC usually involves several processes, such as validating customer identity, proof of residence, and proof of funding, which can be lengthy and frustrating.
But sometimes the process can run a lot quicker. The use of old technology can lead to delays in staff promptly executing KYC checks, resulting in a long wait for customers. According to Signicat's 2021 survey, 68% of customers abandoned a financial services application due to the lengthy application process and the sheer amount of personal data required.
Another hurdle is meeting customer needs for maintaining sufficient operating hours and responsive troubleshooting. People turn to fintech services when banks fail to satisfy their needs; however, providing 24/7 support to the 'frustrated' customers can be challenging for most fintech companies. As fintech companies scale, issues in providing responsive troubleshooting for many clients may also become prevalent.
Outsourcing CX Talent To Narrow The Talent Shortage Gap
The war for talent which began after the COVID-19 pandemic seems to have spilled over to fintech. According to a report by TDCX Inc. TDCX, a digital customer experience solutions provider, 23% of fintech outsource some customer experience services, especially artificial development (AI) development, KYC verification, chat support, and tech support to overcome the talent scarcity.
While some businesses believe in deploying chatbots to circumvent the current CX shortage, this may not be the right solution because customers still need human interaction for brand building. According to a study by Statista, 66% of customers don't feel comfortable talking to AI-powered robots.
TDCX is one player that says it is helping companies operating in the fintech space to outsource the best CX services to meet the growing demand. According to TDCX, hiring the highest quality talent is made possible with its cutting-edge AI-powered solution, Flash Hire, which has helped the company cut recruitment time by 62%.
Through its support hubs spread across different continents, the company can provide 24/7 human customer support in different languages to clients, helping them build their brand and retain customers.
Data analytics forms the backbone of TDCX's list of cutting-edge technology solutions. The company boasts of having a strong team of data analysts and strategists who can generate actionable insights for customers from the company's pool of consumer interaction data. For instance, the company says that through its advanced sales analytics, it can provide its clients with insights on the appropriate action to take, helping in areas such as lead generation and execution support.
Featured Photo by Jonas Leupe on Unsplash
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