Fintech spend is rapidly growing. Small banks and fintech startups have recognized the moment for digitization and decided to seize it. According to Business Insider, 79% of banks’ IT spend is focused on digital customer experience. As 71% of millennials find having a banking app “very important”, digital banking apps are obviously the future of banks.
Fintech startups are also getting a lot of attention. CB insights research discovered that during 2019, fintech startups from all over the world raised $33.9 billion across 1,912 deals.
However, even though the demand for digital banking is growing, not all users seem to be satisfied. Business Insider research also discovered that 61% of users would change their bank if it offered a poor mobile banking experience.
That’s why banks have to put in a serious effort into creating a seamless customer experience. Only a few years ago, banks had a choice to offer an app like an addition to their offline services. But now, having a functional digital banking app that covers all services is mandatory in order to keep customers.
The problem here is that small banks don’t have the resources to develop a digital banking app on their own. Moreover, they don’t even have the tech knowledge required to develop an app of this kind. That’s why the best way to go for them is to find a tech partner who is an expert in Fintech.
Many banks use loyalty programs to keep users engaged. However, now things have to go beyond that. A simple loyalty program isn’t enough anymore.
As the digital revolution is enabling users to change banks in only a few clicks, those with poor mobile banking experience will be easily left out.
Here’s what to do in order to turn mobile banking users into your loyal customers:
Even the most complex financial processes should be presented simply. Customers should go through a straightforward process with logically-sorted steps that don’t allow them to wander. Creating a step-by-step process that doesn’t include other distractions leads the user to their goal, living them satisfied with how efficiently they did what they came for.
For example, Danish startup Coinify made trading virtual currencies an easy and convenient process. Individuals can buy virtual currencies by simply signing up. After that, they get a digital wallet and they can start buying currencies with either payment cards or bank transfers.
Simplicity is very important, especially for extensive processes like opening a loan account or a checking account. The ath Power Consumer Digital Banking Study report discovered that almost 30% of digital banking users had abandoned processes like this. The main reasons for abandonment were that the process was too lengthy (42%) and too complex (39%).
Simple and straightforward interactions are also important for services that users don’t use often. This means that they don’t know the process very well, so they need clear guidance on what to do. Otherwise, you might cause frustration or anger with your digital banking users.
Mercator Advisory Group discovered that the use of any kind of mobile payment increased from 48% in 2018 to 60% in 2019. Moreover, Apple Pay had 30.3 million users in 2019, taking over the spot of the top mobile payment app in the US from Starbucks with 25.2 million users.
Digital wallets are on the rise, and banks should really care about them. Managing loyalty card programs through a digital wallet makes the user experience much simpler and more convenient. For example, Capital One partnered up with Foursquare to push offers to users when they are at a partner store.
Digital wallets bring banks closer to customers. They allow the use of many different digital technologies, like augmented reality