Three Customer Support Mistakes Fintech Needs to Avoid Immediately!

While just half of the banking clients think they received customer-centric service, the comparable indication for fintech is above 80 percent.

Fremont, CA: Fintech solutions are gaining traction and are posing a severe threat to traditional banking. Direct-to-consumer banks outperform credit unions in terms of customer satisfaction. Customer turnover is also the lowest among digital banks.

While just half of the banking clients think they received customer-centric service, the comparable indication for fintech is above 80 percent.

When it comes to client assistance, most fintech businesses make three common mistakes. Let's have a check.

Investing in tech rather than people

Consumers were drawn to fintech goods in the first place because of technological innovations that made banking more accessible. However, when interacting with consumers, the rule of thumb is to avoid using too much technology. One of the most challenging issues facing fintech businesses is retaining "a human touch," but they continue to invest in tech-enhanced solutions rather than people.

Customers of Robinhood recently reported that they could not contact a representative by phone to report that their accounts got stolen. Instead, they were left waiting for support emails, which took days to come. For one of the largest fintech businesses in the US, a simple customer service channel like a phone line did not deem significant. This scenario illustrates that while dealing with financial difficulties, consumers still need to speak with a live person. It doesn't matter how large or little the company is or how tech-savvy the clients are; human interaction is still vital.

• Relying only on in-house support

Fintech is no stranger to outsourcing: up to 20percent of companies outsource their technological needs, with another 65percent contemplating outsourcing shortly. However, most of it focuses on programming and development, whereas outsourced customer service is seen as a quality sacrifice and a greater security risk.

Without question, establishing an in-house customer service department provides companies more control over the process and direct access to consumer information. When the product is still under development, this is highly crucial.

However, because increasing an in-house customer support team is time-consuming and expensive, it may degrade the quality of service as operations increase. In addition, demand will eventually outstrip the capacity of the in-house staff, increasing handling time. Outsourcing will allow the company to scale its workforce quickly and save both time and money.

• Overestimating the level of product adoption

Because they are more inclined to accept tech solutions, millennials are the most popular target group for financial goods. However, companies should not presume that customers will figure out how to utilize financial interests quickly and clearly.

Fintech goods are used by 33percent of customers, with payments and money transfer services being the most popular. However, companies should not overlook the importance of teaching and explaining how to utilize their products. Ignoring this will result in higher customer support costs.