The global fintech market is on track to grow at an annual rate of 20% over the next four years. There is a tremendous amount of competition as literally hundreds of startups are racing to secure funding rounds and establish themselves as dominant players in the industry.
Yet, the Achilles heel of every Fintech company remains the level of customer service they offer their clients. Why? Fintech companies haven't cultivated the same level of trust as incumbent financial service providers, and they also don't often replicate those providers' high-touch service models. In this article, we explore why Fintech companies should focus on omnichannel customer support to differentiate themselves and earn their place in the market.
Let's dive in.
The Current State of Fintech
Fintech is taking the financial industry by storm. Many fintech startups have emerged recently, including cryptocurrency and blockchain technology. Other companies focus on developing more user-friendly investing apps or improved banking technology. The number of corporate venture capital (CVC) fintech deals is on track to increase 64% year to year, with an aggregate deal size projected to increase by 158%. Overall, the global fintech market is on track to reach $324 billion by 2026.
There is greater competition among the legacy players in the space as well as the new types of services that have emerged. As a result, there's an increased need for a competitive advantage for each firm to really make its mark in the financial market.
Omnichannel Customer Support—The Ultimate Competitive Advantage
An emerging trend in the fintech space is digital customer service. Customers increasingly use several platforms and communication channels to ask questions and voice their concerns. Therefore, it's essential for fintech companies to establish an omnichannel customer support operation and be available for their customers wherever they are online.
Here are the top reasons why omnichannel support is the biggest competitive advantage for fintech firms.
Greater customer retention
With an increased focus on customers, happiness comes greater levels of retention. We all know that acquiring a new customer is more expensive than retaining an existing one. And retention is an important vehicle for referral business and long-term growth.
Studies show that customer retention rates are higher for brands with an omnichannel presence than for brands that communicate via a single channel. In fact, one study found that brands that engage with their customers on multiple channels can retain 89% of their customers compared to the meager 33% for companies with weak omnichannel engagement.
Lower-Touch Business Models
One of the main differences between traditional financial services companies and emerging fintech firms is the amount of human interaction between the buyer and seller in each transaction. For example, a banker or investment adviser in a traditional firm gets a lot of in-person time with the client. However, that's not the case for someone using an investment app or a cryptocurrency exchange. Omnichannel support can bridge the gap by giving customers prompt access to expert service professionals who can offer personalized guidance.
Fintech Firms Can Offer Better Support than Legacy Orgs
One of the main reasons some customers are moving away from traditional financial services is the belief that these legacy companies don't have their best interests at heart. Often, the interests of customers and financial service companies aren't aligned, and customers feel that. A banking survey by Oracle found that 56% of millennials and Gen-Z would switch from traditional banks to emerging financial apps, and "trust" was by far the most critical factor.
Fintech companies don't have that issue since their product is based on technology and not so much on the service aspect of the transaction. So they can optimize their revenue by increasing user engagement without losing the customer's trust.
Let Exceptional Customer Support Take You Higher
Fintech companies can vault ahead of their competition by using omnichannel customer support. Not all companies can afford to hire a customer support team in-house or start their own call center, so the most cost-effective solution is to turn to a trusted partner like Helpware.
Here at Helpware, we have a team of uniquely qualified customer support representatives who can quickly learn your tech stack, help manage your customer data in one place, and vastly improve customer retention. Learn how we can help your fintech business grow today!