The future of financial services is greatly influenced by advancements in banking technology, regulations and customer expectations. There are many FinTech startups in the market that are using the latest technologies, powerful security features and user-friendly designs to take financial services to the next level. For startups, it’s challenging to find success in this space. So, what makes the difference between their survival and fatality?
Customer satisfaction is the key to success in any business, whether startup or established. Every Fintech startup can bring personalized solutions tailored to each customer by choosing the right design & technology. Below, we have jotted down some of the tips that will help your startup, to thrive in the Fintech space.
- Thoughtful UX Design
Today, customers are used to global design benchmarks, thanks to awareness and usage of social media, gaming and OTT apps. They don’t prefer complex designs and navigations. A user-friendly and intuitive interface with customer-centric options is more likely to get quickly adopted. So, it is important to give innovative and interactive UX layout to the customers so that they can easily pay bills, check bank balances, share or transfer money online, apply for loans, compare & invest in mutual funds, buy policies, and increase their savings. A thoughtful UX design will make your customers happy and engaged. For example, D91 Lab is an open-source initiative by Setu that provides research, insights, frameworks, and component libraries for FinTech companies.
- Open Banking
Open banking is the concept that helps discover possibilities to enhance the services for banks, with the use of APIs. Through open banking, many different account holders can compare the deals and offers given by banks on a single platform. With the help of dashboards, consumers and businesses can see the earnings and spending to plan finances in a better way. Also, open banking has enabled swift and easy means of making payments. Consumers can directly pay through banks without involving a third-party organization. For example, PSD2 is the second Payment Services Directive that has revolutionized the payments industry. It allows you to pay through your bank without redirecting to another service (like PayPal or Visa).
- Cloud Banking and Real-time Analytics
With the help of cloud computing, startups can reduce the cost of managing and storing data to a great extent. As the cloud is capable of adapting to the changes required in the process, therefore, it is the first choice for storing data securely. It gives data privacy and better risk management to the organization. AES (Advanced Encryption Standard) algorithms are used by Federal Government that ensures safety measures.
Many banking executives believe that adopting a hybrid cloud can minimize their cost of IT ownership. Hybrid cloud empowers businesses with cost flexibility, business scalability, market adaptability, masked complexity, contextual variability, and ecosystem connectivity.
Further, real-time analytics can be used to provide tailored services to customers. In the fintech ecosystem, real-time analysis through a control tower helps to increase RoI, reduce default rates, optimize operations, and improve business agility. It gives you near-real-time insights into the credit behaviours of the customers and allows you to offer them related services.
- Technology and Intelligence
Artificial intelligence and blockchain technologies are helping organizations to better conceptualize and deliver, through ease of communication, better tracking, and process automation of financial operations.
With advanced technologies, it is becoming easy to reach people living in rural areas, in their native languages. Some AI-based tools and applications are useful to streamline the data collection and lending processes. Innovative conversational user chatbots provide the solution to customers in real-time to elevate the customer experience. Hence, the latest technology reduces costs and helps unlock new revenue streams.
Blockchain is another emerging technology being adopted in finance, that makes trading easy and secure on the global level. With the help of tools based on blockchain technology, it is easy to streamline and automate the process through seamless collaboration. By decentralized channels (e.g. crypto) for payments, Fintech startups can cut down on the need for verification from third parties for payments.
- Cyber Security
Fintech startups have all the reasons to keep themselves and their customers away from threats. The system’s security is a crucial point to ensure safe transactions from wallets, loans, and mutual funds buying and trading. Cryptography provides secure digital pathways for mathematical and information technology in Fintech. With the help of AI and machine learning, transaction and payments can be accessed and analyzed, to ensure that there are no security breaches.
From microfinance, retail & corporate banking to private banking, and neo-banking, the blend of finance and technology is unstoppable. Therefore, the startups that take innovation and technology hand in hand will surely increase their chances of success.
To excel in the startup world, every startup needs the latest technology, innovation, and dedication to making a difference.