As a system integrator for Fintech platforms, we are presenting our observations on upcoming challenges & competitions.

MobileFirst Fintech works with building blocks of Fintech innovators like Plaid, Dwolla, Marqeta, ACHQ, Codat.io, Onfido, Rutter & others. We build forward-looking Consumer Experiences (CX) and innovative FinTech solutions in collaboration with our partners.

Fintech, or financial technology, is a rapidly growing industry that is revolutionizing the way people interact with and manage their finances.

From mobile banking apps to investment platforms, fintech companies are using innovative technologies to solve some of the top financial challenges faced by consumers.

In this report, we will explore how fintech can address these challenges, where businesses can innovate to stand out from the competition, and why brands need to deliver great experiences to meet consumer expectations.

“Fintech is not just about startups disrupting the financial services industry. It’s about the financial services industry adopting technology to drive growth and innovation.” – Rohit Arora, CEO of Biz2Credit

Top 3 financial challenges for consumers

1. Access to financial services: One of the main challenges faced by many consumers is access to financial services. This can be due to a variety of factors, including geographical location, income level, or credit history. Fintech companies are addressing this challenge by providing online platforms that allow users to access a range of financial services from anywhere with an internet connection. For example, online banks and peer-to-peer lending platforms allow users to open accounts, apply for loans, and make investments without the need for a physical branch.
2. High fees and poor returns on investment: Another common challenge for consumers is the high fees and poor returns associated with traditional financial products and services. Fintech companies are addressing this challenge by offering lower-cost alternatives and more transparent fee structures. For example, robo-advisors and online investment platforms often charge lower fees than traditional financial advisors and provide access to a wider range of investment options.
3. Lack of financial literacy: Financial literacy, or the ability to understand and effectively use financial products and services, is an important factor in financial well-being. However, a significant number of individuals lack financial literacy, leading to poor financial decision-making and increased financial vulnerabilities. Fintech can help address this challenge by providing financial education and tools to help individuals make informed financial decisions. For instance, financial planning and budgeting apps can provide personalized financial advice and help individuals track their spending and saving habits.

“Fintech is not about replacing traditional financial services, but about using technology to enhance and improve them. It’s about finding new and innovative ways to meet the needs of customers and drive growth and innovation in the financial sector.” – Mary Jo White, Former Chair of the Securities and Exchange Commission

Where businesses can innovate to stand out from the competition?

• Personalization: One area where businesses can differentiate themselves is by offering personalized experiences that are tailored to the needs and preferences of individual users. For example, fintech companies can use data and analytics to understand the financial needs and goals of their users and provide customized recommendations and services based on this information.
• User experience: Another way for businesses to stand out is by focusing on the user experience. This includes making the process of accessing financial services as seamless and intuitive as possible and providing high-quality customer service. Fintech companies can use technologies like artificial intelligence and machine learning to streamline processes and improve the customer experience.
• Partnerships: Businesses can also differentiate themselves by forming partnerships with other companies to offer a wider range of products and services. For example, a fintech company could partner with a retail chain to offer customers discounts or rewards for using their financial services.

Why do brands need to deliver great experiences?

Consumers today expect a high level of convenience and personalisation from the brands they interact with. In the financial services industry, this means that companies need to deliver a great user experience in order to meet customer expectations. This includes making it easy for users to access financial services and products, providing clear and transparent information, and offering high-quality customer service.

• a. Increased competition: The fintech industry is highly competitive, with new players entering the market constantly. In order to stand out, brands need to deliver great experiences to their customers. This includes offering high-quality products and services, providing excellent customer service, and using technology to make financial transactions smooth and convenient.
• b. Customer expectations: With the proliferation of technology and the abundance of choices available to consumers, customer expectations have increased significantly.

Brands that fail to deliver a great experience risk losing customers to competitors who are able to meet these expectations.

According to a survey by PwC, 69% of consumers said they would switch financial service providers if they had a poor experience (PwC, 2017). 

This highlights the importance of delivering a great experience for consumers in the financial sector.

Here is the bold observation related to Consumer Experience (CX) in Fintech:

“The fintech revolution is about using technology to drive efficiency, reduce costs, and improve the customer experience. It’s about rethinking the way financial services are delivered, and using technology to create new and innovative solutions that meet the needs of customers in a faster, cheaper, and more convenient way.” – Chris Skinner, Chairman of The Financial Services Club