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Sally Leslie
Sally Leslie August 31, 2023

There is no end to the astronomical rise of financial technology (FinTech). More businesses are starting to use it to gain a competitive advantage. According to Statista, FinTech users will continue to grow year after year. Indeed, by 2027 FinTech users are predicted to exceed seven billion

Using FinTech can help you optimize your business and improve customer engagement. But it will only work for you if you use it right. You must have an understanding of how it can help your customers. This article will explain how FinTech can improve customer engagement.

What is FinTech?

FinTech refers to using technology and innovative solutions to improve financial services. Many companies use FinTech in applications, business models, and products. FinTech is advancing daily, and the potential of this industry is exciting. If you aren’t already using it in your business, it’s only a matter of time before you turn to it.

Fintech
Image Source: Fintech Magazine

Understanding FinTech Customer Engagement

Anything you can do to make your customers feel comfortable is worth pursuing. Your users are why your business exists and makes money. FinTech can help you improve customer experiences and get closer to your customers. This in turn boosts FinTech engagement.

What is FinTech Customer Engagement?

Companies can use FinTech practices and strategies to attract, interact and keep customers. The goal is to create positive experiences. These experiences can help to build trust and foster long-term customer relationships and improve FinTech engagement.

Here are some areas where companies use FinTech to improve FinTech customer engagement.

– Personalization 

Companies can use data analytics and artificial intelligence (AI) to understand customers better. It allows them to offer personalized recommendations, products, and services. Organizations can customize items to meet the needs and preferences of each customer.

– User Experience (UX)

Companies can spend time creating easy-to-use interfaces to create seamless customer interactions. Developers can design apps, platforms, and websites that are easy for customers to use. For example, customers will stick around on a website they find easy to navigate.

– Customer Support

Providing quick and reliable customer support is essential in the financial services industry. Companies can use FinTech to help them in this area. Chatbots, emails, and in-app messaging are some examples. These areas can all have a degree of personalization to boost FinTech customer engagement.

– Gamification

FinTech can help companies to incorporate gaming elements into their apps and platforms. Monitoring gamification interactions can help companies to create more personalized areas for customers. 

Gamification

Gamification in Fintech: Top 5 Fintech Gamification Examples To Level Up in 2023! 

– Rewards and Incentives

Customers like to shop around but will stay with a company that can offer them more. Loyalty programs and cashback incentives are popular ways to do this. Companies can boost customer retention by providing customer rewards and incentives.

– Smooth Onboarding Process

Onboarding needs to be as smooth as possible for customers. Simplifying the registration process and offering user guides can help customers. If your website is easy to use, customers will come back and may tell others about their positive experiences.

Increase FinTech App Engagement using these In-App Message and Push Notification Templates!

Challenges in Managing FinTech Customer Engagement

Customer engagement can help to retain customers and attract more. However, companies will encounter challenges along the way. Here are some of the most common obstacles to know.

1. Personalization and Customization

People expect companies will tailor financial products and services to their needs. But keeping up-to-date and offering the best-customized experience can be challenging for small start-ups.

2. Data Privacy Concerns

Customers are now more aware of data privacy issues. Companies must handle data correctly and adhere to rules and regulations. Managing data correctly can be challenging, but it can also demonstrate responsibility.

Data Privacy

3. Integration With Existing Systems

Many customers are using different financial apps every day. Sometimes it can be challenging for companies to integrate their solutions with other systems. The budget and skills must be in place to handle these issues.

4. Trust and Security Concerns

Because FinTech deals with sensitive information, customers will have security concerns. Building trust is challenging with increasing cases of cyber-attacks and threats.

5. Regulatory Compliance

The financial industry has many rules and regulations. Companies need help to stay on top of the compliance requirements. Using RegTech, alongside FinTech, can help companies handle compliance demands.

6. Mobile App Usage and Retention

There is an increasing dominance of mobile phone usage among customers. Organizations must use state-of-the-art FinTech to create engaging mobile apps to improve FinTech engagement.

The Importance of Using Customer Engagement In Organizations

Organizations can reap huge benefits when engaging their customers. Also, when customers are engaged, they are more open to giving feedback. This feedback is like gold dust for a company. It can help to personalize and customize products and services further.

Additionally, high customer engagement allows enterprises to push product adoption and opens cross-selling opportunities. Also, when customers feel connected to the company, they will be more inclined to recommend it to others. 

Learn how banks can use Mobile Banking Apps to Cross-sell and Upsell!

Impact of Customer Engagement on Retention Rates

Every company wants to grow and attract more customers. However, companies must consider the connection between customer engagement and retention rates. Customers will stick with a brand when they feel comfortable. Increasing customer loyalty is critical to boosting retention and reducing churn rates.

Customer engagement can also lead to an increase in customer lifetime value (CLTV). This measurement shows the total revenue a business can expect from a customer during the relationship. Naturally, engaged customers have longer relationships which lead to a higher CLTV.

Understand how to boost Customer Lifetime Value in Banking!

The Evolution Of Personalization And Customization In FinTech

Innovation and financial technology have a long history of working together. Here is a historical overview of FinTech services from the past to the present day.

  • In the 19th century, telegraph networks enabled faster communication for financial information and transactions.
  • The first stock ticker in the 1860s gave market updates and real-time stock prices.
  • Computers in the mid-20th century made more efficient data processing and transactions.
  • The 1950s saw the first credit cards, and in the 1960s, the first ATMs appeared. Both were early FinTech innovations that transformed payments.
  • In the 1980s and 1990s, customers started using online banking services.
  • Also, in the 1990s, the World Wide Web created a foundation for e-commerce platforms. Customers could now make online payments and purchases.
  • The early 21st century saw the Mobile Revolution. The start of smartphones created opportunities for mobile banking and payment solutions.
  • Companies such as Paypal started to make things easier for customers with online payment services.
  • Peer-to-peer (P2P) lending appeared in the mid-2000s. Platforms like Zopa popularized P2P lending, where people could borrow money from each other.
  • The 2000s saw the birth of blockchain and cryptocurrencies using digital currencies. 
  • We are now seeing the start of robo-advisors. These automated platforms for investment management provide lower fees and more accessibility for users.
  • Artificial intelligence (AI) and machine learning (ML) are helping with fraud detection and personalization.
  • Today, we see open banking initiatives that foster innovation and competition. Also, society is now taking steps to promote financial inclusion.

The Rise of Personalization in FinTech

Personalization is now becoming more popular in the FinTech sector. You only have to look around you and consider the products you use daily. Here are a few examples where personalization can make a difference:

– Customized Financial Products

FinTech can leverage customer data to design personalized financial products. These can be anything from personalized investment portfolios to loan offers and insurance plans. FinTech can look at the customers’ financial goals and spending habits.

-Hyper-Personalized Marketing

FinTech can help companies deliver relevant and targeted marketing messages to their customers. FinTech helps companies understand the interests and needs of their customers. This information enables the company to offer products and services that resonate with customers.

– Fraud Prevention and Risk Assessment

A company can use FinTech to assess a customer’s risk profile. It can identify fraudulent activities and suspicious transactions. It’s also possible with some AI algorithms to find problems in real time. This setup is ideal for alerting customers instantly.

Rise of Customization to Cater to Individual Needs

Customization is as important as personalization. Customization accepts the uniqueness of individuals. It realizes that there isn’t one solution for everybody. Everyone is different, needing their own customized solutions. Here are a couple of reasons why customization can further engage customers:

1. Improving Performance and Efficiency For Customers

Companies can use FinTech to tailor solutions to match customers’ strengths and weaknesses. So whatever the customer is doing, they can do it better. For example, if the company works in education, it can help students to understand concepts more quickly.

2. Diverse Backgrounds

Customers have different abilities, backgrounds, and circumstances. FinTech customization can help to consider these. A company can use the information to create products and services for a broader range of customers. These extra markets generate more sales and can help support business growth and boost FinTech engagement.

Final Thoughts

Retaining and attracting customers is critical for business growth and success. Customers feel genuinely seen when a business matches their needs and preferences. Companies can use FinTech to engage customers via personalization and customization tactics.

While exceptional customer service and continuous innovation can help enterprises stay competitive, FinTech is taking everything to another level. Companies can build customer loyalty by concentrating on personalized experiences. Start using FinTech and offer products or services your customers will love. 

How can we help? Join the Revolution!

At this point, you might be wondering, “All this sounds amazing! But, how do I get started?” That’s where Upshot.ai comes into the picture.

  1. Personalization at Scale: With our intelligent customer segmentation and personalization tools, Upshot.ai enables you to create hyper-personalized experiences. It’s like having a one-on-one conversation with each of your customers, no matter how big your audience is.
  2. User Experience Mastery: Our seamless integration and user-friendly interfaces mean that providing a smooth user experience is no longer a mountainous task. You can design and tweak customer journeys that feel natural, enjoyable, and effortless.
  3. Gamification Unleashed: Looking to turn engagement into a fun game? Upshot.ai’s gamification tools allow you to design engaging challenges, badges, and rewards that keep customers coming back for more.
  4. Omnichannel Communication Hub: Be everywhere your customers are with our robust omnichannel communication platform. Keep the conversation flowing seamlessly across platforms, ensuring a consistent and engaging brand voice.
  5. Onboarding Brilliance: From the first hello to the successful conversion, Upshot.ai’s onboarding tools guide your users through the process with ease and style, all while keeping it personalized and engaging.
  6. Rewards & Incentives Reinvented: Tailor-made reward systems, easy-to-implement referral programs, and incentives that resonate with your brand – Upshot.ai’s reward and loyalty tools has it all covered.
  7. Analytics and Insights: Monitor, analyze, and adapt with real-time analytics and insights. Understand what wows your customers and continuously evolve your strategies with Upshot.ai’s powerful analytical tools.

Upshot.ai isn’t just a platform; it’s a partner in your quest to redefine the customer experience. With our comprehensive suite of tools, seasoned expertise, and customer-first approach, we stand with you in your mission to WOW your customers in 2023 and beyond.

Ready to take the plunge? Let’s turn the ordinary into the extraordinary together. Book a demo, and let’s get started! 🚀

Author Bio

Sally Leslie

Sally Leslie is a B2B writer and content editor for entrepreneurs, SMEs, and startups. Sally is passionate about the changing world of technology for a better future. She is also a lover of plants, freedom, and football.

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