We are living in the digital age; digital money, digital investing and digital deposits. The FinTech sector is finding new ways to make money management easier than ever before. And, it comes as no surprise that the quest to integrate digital technology across all aspects of business is high on the minds of leaders in the financial services sector. Being able to do so can significantly impact a brand’s ability to deliver unique customer experiences. In an age where hyper-personalised interactions with a brand is quickly becoming the norm, companies can no longer get by with simply a website or an app. Digital transformation is the need of the hour.
Enhanced Customer Experiences
As the tech-savvy millennials become the largest consumer base for FinTech products, companies will need to re-define their digital marketing initiatives to increase engagement rates. Rising competition has brought forth innovative technologies like blockchain, artificial intelligence and predictive analysis. Big brands are already harnessing these technologies as a part of their digital initiatives, not only for money management, but also to anticipate customer expectations. They are formulating their marketing messages according to the requirements of the target audience.
Customer experience can singlehandedly qualify as a fundamental competitive differentiator; sometimes more than the product itself. So, is your brand contributing to customer education? Is it building content that can help consumers make intelligent investment decisions? These factors need to be addressed carefully.
For such purposes, companies have switched to digital content management; from analogue document processing. They are able to provide wider access to information, in a more effective manner, across multiple marketing channels, such as social media, press and other online platforms. Through such systems, compliance with existing laws can also be ensured.
Digital Transformation Enhancing Brand Image
In the age of rapid proliferation of digital platforms, we are not only communicating through words, but also through icons and symbols. Consumer facing brands are re-designing their marketing channels, even their logos, to reflect their readiness for and optimism regarding a digitally enabled future.
MasterCard recently changed its brand logo in a similar exercise. In fact, the company says that more than 80% of the consumers have been able to recognise the new symbol, without the mention of “MasterCard®”. The brand logo is an important part of a company’s image; an organisation that spells innovation has to, therefore, be careful in selecting the best logo to represent this.
Creating such brand recall is also essential to survive in an intensely competitive industry. Visual marketing tactics are fast becoming popular tools for the FinTech sector. Infographics and powerful images have a way of touching people’s hearts and minds, quite unlike plain text. It is also a way to sell new technology to people, who are yet to fully appreciate its need. Blockchain wouldn’t have been so popular without the scores of ICO videos on YouTube.
A Drive Towards Increased Cyber-Security
Digital transformation was essential for FinTech brands to drive credibility in the market. Why would people choose strange technologies over traditional banks otherwise? At the same time, protection of such digital business models became a prime necessity. Security and privacy of consumer data are both an advantage and a challenge for FinTech companies. But, enhanced security paves the way for significant long-term benefits, in terms of greater operational efficiency, good customer service and increased revenues.
Funding and M&As
Partnerships of FinTech companies with traditional financial institutions will become increasingly necessary in the coming years. While the former lacks the huge consumer base and regulatory approvals enjoyed by big banks, the latter lags behind in technology and digitisation, which today’s largest consumer base, the millennials, are looking for. Through digital transformation, FinTech companies can reach out to big names in the industry. They can attract the attention of big venture capitalists and lenders too. FinTech start-up owners who have managed to establish themselves as thought leaders have successfully been able to achieve good funding opportunities.
Digital transformation brings in customer loyalty because it enables brands to focus on their consumers in an intelligent manner. For this, companies need to constantly evaluate and adapt their marketing strategies.