A Fintech confusion: the difference between what customers do and say
Updated: Mar 28
Good ole’ traditional banks on one side. Fairly new fintech companies on the other side. Both are using digital services and fighting over customers. But how do customers view this new era of digital banking? And what are the lessons to be learned for both sides from such customer feedback data? The results from such data were just in, in a late 2021 survey, and they are very interesting and even present one surprising aspect. But in order to dig even deeper into customers’ needs and wants, continuous tracking and evaluation of the customer feedback data must be employed by both sides.
The fintech industry, comprising many companies covering such digital offerings as credit, payments, insurtech, blockchain, open banking, and more, keep advancing. The largest Fintech companies globally serve as proof that many of us have already incorporated at least a few of the digital services offered by them into our daily lives. But as fintechs are all about digital, the traditional banks are moving fast in trying not to stay behind. Banks are supplying their customers with more and more online services that offer convenience and save time. In fact, it can be stated that Fintech companies are helping banks embrace the digital age.
Mastercard, the second largest fintech company in the world (trailing only Visa in the amount of customers), surveyed 4,000 United States and Canadian customers over the issue of open banking. The idea was to find out how respondents feel about adopting digital services and what are their preferences between traditional banks and fintech companies. Mastercard's open banking survey revealed, unsurprisingly, that 9 out of 10 consumers in the USA and Canada use online and mobile financial applications to manage their money issues.
However, one bit of data stood out from the overall customer embracement of digital services. Apparently, Customers don't trust open banking or fintech companies, but use both, as only 14% told Mastercard that they even trust linking a fintech account to their primary bank account! So, although most people adopted some form of open banking, very few of those surveyed show trust in the fintech companies to take care of their finances.
Such a contradiction between actions and feelings calls for a deeper dive into the consumers’ thoughts and begs for further investigation into issues all fintech companies are dealing with. Fear of online defaults such as bugs or hackings is always on customers’ minds as fintechs must continue to build trust with consumers. Then there are fears of sharing financial data with fintech companies and worries over money transferring tech problems. And while the Mastercard survey was conducted in the traditional gathering ways, is it still only a one-time collection of answers from respondents. Consumer concerns are constant and daily, so continued research and data collection of their feedback are essential in figuring out how to move forward. Then there are the personal and specific issues to track and analyze for consumers against the fintech service they are connected to.
Addressing such a contradiction and figuring out what to do about it can be helped by using Affogata. Fintech companies, some of which already employ Affogata’s customer intelligence platform, receive specific and personalized feedback data analysis. First, customer complaints are reported in real-time and all the time, so specific problem areas can be quickly fixed. Then, the customer service team in each company can directly respond to specific clients in our “all-in-one” platform, encompassing many different channels such as forums, review sites, app stores, and social media platforms.
As the data keeps piling up and being analyzed 24/7 for actionable insights, fintechs can also take a high-level view of how their service is operating vs. customer fears and concerns. They can then decide on what product areas to improve or devise a brand marketing campaign to strengthen consumers' feelings about the security of their service. What they learn of how consumers view their customer service directs them to keep improving it. And last but not least, our brand sentiment score, coupled with the qualitative data analysis our platform provides, gives fintech companies a true measure of their performance, as dictated by the only opinions that count. These are the opinions of their customers.