3 Biggest Challenges of Fintech and How to Overcome Them
In recent years, fintech has created a massive wave, disrupting many business verticals, especially the finance industry. It has improved many facets of finance like payments, money lending, wealth management, and more. This disruption has resulted in creating seamless and unique customer experiences, helping customers understand and adopt fintech without much hesitation.
But these customers are a part of a tiny subset. Outside of this subset, many people are still wary of accepting fintech because of many reasons like lack of trust, low transparency, probable security breaches, or just because they’re much more comfortable with the traditional ways of financial transactions.
The fintech sector although creating a technological revolution in the finance industry, does not fail to stumble upon its set of challenges. In this article, we’ll see what these challenges are and how to overcome them.
Challenge #1: Credibility
This is the number 1 challenge of any innovation, and it holds good for fintech too. Since it’s money we’re dealing with, most people still lack the trust component to rely on fintech to simplify their financial operations. Gaining the confidence of people and have them trust your product that is unfamiliar, takes a lot of time and effort.
Solution: A content development strategy with learning at its core
Marketing fintech to people doesn’t necessarily mean selling your product to them, but making them understand what the innovation is, and how and why it can be beneficial for them to use the services. Research and build compelling content that is educational, in a manner to bring them to believe in your product.
Although there’s a high demand for digital solutions, fintech is a relatively new buzzword. The goal is to make your audience understand the concept and familiarise them with it so that the idea doesn’t seem foreign anymore. E-books and whitepapers, case studies, customer testimonials, and infographics work best for this use-case.
Also, choose wisely, the form of content for a particular subject.
If the subject is a problem that you solved
You can translate the solution into a case study where you summarize the challenge, describe the steps taken to tackle the challenge, and the results of implementation of the solution.
If the subject is a generic problem that you solved in a unique way You can develop a whitepaper by defining the problem and proving that it’s a legitimate problem, talking about the traditional solution, and how you solve the problem differently.
Challenge #2: Discovery
You may have a solid product that works very well; you may have gained the trust of a good number of people to start with, who use your product. But what about the bigger picture? At this point, you want more than just a handful of people using your product. There are over 600 fintech startups in India alone, and let’s not forget fintech giants. Getting your product discovered amongst the competition is definitely a challenge.
Solution: Effective distribution of content
Once you have your content, you’re halfway there. Your marketing strategy should have a solid distribution plan so that the right people consume your content for your product. The internet is full of millennials, who make up a good chunk of your target audience. Catering to their interests can be a stepping stone for the remaining part of your strategy. Millennials are tech-savvy and are continually finding solutions to their problems online. They’re very active on social media as well. Exercising this and maneuvering your plan to suit their needs will help your product get discovered to an extent.
Suggested Read: Content Distribution Through Influencer Marketing
Is your website well-designed and optimized? If not, you need to change that. Like we said earlier, millennials spend a lot of time on search engines finding solutions to their problems. If your website is not optimized, your product may not appear in search results, and you could miss out on many potential customers. Your website needs to be perceptive, creative, and informative while being search engine optimized.
Challenge #3: Customer relationships
Every business out there requires customers, of course. If you want your customer-base to stick with your product and keep coming back, you need to make sure you retain your customers for the long run by building long-term customer relationships.
Solution: Constant improvement of services
As your company grows and gains popularity, it’s essential that your customers love your product, but most importantly, love your brand. Establish an emotional connection with your customers by telling them success stories of other customers, and engage them from time to time. You can achieve this through content – blog, newsletters, and social media.
But the most crucial aspect of building great customer relationships is providing quality service. Track customer behavior with your product to understand how they interact and use your product. This provides insight into what’s working well and what may be the pain points. Use these insights to constantly improve your product and the service you provide. A happy customer is a returning customer.
The sum and substance
Fintech, still being at its early stage of adoption, will raise questions and eyebrows from most people. While its advancements are disruptive, the focus of any Fintech company should be about educating people about the concept.