How FinTech Can Add Value to your Business’ UX (User Experience)

FinTech and user experience, FinTech adds value to user experience

Thanks to FinTech or financial technology, businesses have a way to automate and improve the way they manage their financial activities such as receiving payments, applying for loans, and making investments. 

FinTech is a technology solution that improves how people manage and transact with money. It consists of various financial activities that are made through apps and web tools, such as applying for a loan online or depositing money using your smartphone. Choosing the right FinTech can actually enhance your organization’s user experience—and with it, your customer service.

How does FinTech complement the user experience

A good FinTech application is clear about the specific problem it tries to solve. Its user interface is intuitive, making it easier for users to transact on their own with minimal help from an actual person. 

For example, if your competitors still require their customers to pay with cash or checks, you can take this as an opportunity to make online payments available to your customers. You remove your customers’ obstacles that make transactions difficult and making it easier for your customers to work with you. This simple convenience can make your competitors’ customers choose you.

The following are some FinTech examples of adding value to your business by enhancing your customers’ user experience:

Mobile payments

What makes mobile payments popular is people embracing immediacy: they want transactions done instantly. This translates to how they want to send or receive money immediately. It is all about moving digital cash across borders real-time and hassle-free at a low cost.

In 2019, more than 61 percent of consumer banking transactions were done on mobile, says the Business Insider. Customers added their debit or credit cards into their smartphone’s wallet app, bypassing chip-dips and swipes for a faster and more secure transaction with retailers.

Crowdfunding platforms

These are where users can send or receive money from others to pool funds for various purposes such as starting a business. One success story is Oculus, a virtual-reality product developed by Palmer Luckey. Luckey turned to Kickstarter, an online crowdfunding platform, to raise $250,000 for product development. The product exceeded its goal. In March 2014, Facebook acquired Oculus for $2 billion in stock and cash.

Insurance or InsurTech

Also known as InsurTech, this platform provides insurance coverage for a wide range of properties and possessions that the insurance policyholder considers invaluable, e.g. automobile and home security. One example is  Tractable, which created an artificial intelligence (AI) solution for Ageas, a UK insurance company. This AI can evaluate vehicle damage and identify which parts have been affected and must be replaced or repaired. After determining the severity of the damage, it then generates an estimate that includes costs, labor hours, and recommended repairs. 

This way, Ageas’ policyholders are able to get estimates as quickly as possible. The usual red tape that bogs down financial compensation is also reduced, providing the policyholders peace of mind as well as the capability to move forward as far as their vehicular requirements are concerned.

Robo-advising apps

This technology provides asset recommendations and portfolio management that are based on real-world algorithms. A low-cost alternative to traditional financial advisors, a robo-advisor is a good option for beginners who do not have a complicated financial situation. Stock traders can use robo-advising to guide their investment decisions. If you are running an investment company, incorporating robo-advisors in your offers can attract beginners and make their initial foray into stock investment a user-friendly and relatively easy one. The robo-advisors are on call 24/7, will answer all their questions, and can give a realistic forecast on how a particular stock behaves.

They can do the initial introduction to the world of investment to your clients; then when your customers have acquired significant skill and knowledge, your more seasoned — and human — financial investors can take over their portfolio.

How FinTech boosts your business through user experience

Aside from capturing what a user values when using an app or tool, Fintech can deliver personalized offers and notification to your customers. A mobile customer service portal that replies to customer’s questions and other concerns is likewise becoming vital support for sales. According to Microsoft, 79 percent of millennials would be more willing to buy from a brand that has one.

Little wonder then that financial technology has been growing stronger. A report from the Business Research Company estimated the value of the Fintech market at around $127.66 billion in 2018. What contributed to this growth is the rapid increase in the use of mobile technology in transacting with money. Choosing the right FinTech that aligns with your brand’s objectives and your customers’ lifestyles and preferences can determine your business’ financial success.