Few sectors have experienced a greater boom in recent years than the FinTech industry. From a time when the banking and financial services market was dominated by a handful of traditional brick-and-mortar banks, today’s consumers are increasingly attracted to the convenience of real-time, 24/7 solutions offered by a range of neobanks, payment apps and other FinTech innovators. So rapid has been the rise that it is no surprise PWC has reported that 88% of incumbent financial institutions believe part of their business will be lost to standalone FinTech companies in the next five years.
For all the good news though, the FinTech industry is not immune to two issues creating headaches for the corporate world – budget pressures and access to talent. Amid soaring inflation, supply chain issues and the lingering impact of the COVID-19 pandemic, many businesses are looking to reduce costs in preparation for the likelihood of rocky roads ahead. Simultaneously, a global labour shortage is making it increasingly difficult for firms to attract and retain talent. Given such pressures, FinTech companies need to think outside the square to ensure they maintain the strong foothold they have gained in the market.
One of the areas most at risk of slipping when budgets are cut and staff turnover increases is customer experience, which is bad news as it is also among the most pivotal reasons for attracting the modern consumer. Research has found that 86% of people are willing to pay more for great customer service, just as 69% of customers who plan to leave their financial institution say it is due to poor service rather than poor products.
Amid all the talk of cost-cutting and labour shortages though, all hope is not lost and that is because there are various ways for FinTech companies to approach operations differently without sacrificing customer experience – and, in many cases, even improve it. This includes tapping into the benefits of outsourcing to revolutionise contact centres, enhance back-office efficiencies or handle the often emotive field of credit and collections.
Along with allowing in-house staff to concentrate on what they do best through outsourcing non-core business functions, the innovative workforce strategy can deliver labour cost savings of up to 70% due to the lower cost of living in offshore hubs such as the Philippines. Alternatively, many organisations prefer onshore solutions that provide similar access to many benefits of outsourcing and keep operations closer to home.
Digital transformation is also rewriting the customer experience script, with many FinTech firms using technology to deliver productivity gains while offsetting workforce and budget pressures. From artificial intelligence and robotic process automation to interactive voice response and virtual agents, there are an increasing number of tools and solutions available to create more seamless and enjoyable customer journeys and, in turn, boost profits. In a world where people not only expect but demand 24/7 support and faster interactions, technology is the key to ensuring they receive it.
As disruptors by nature, FinTech companies have used innovation and enterprise to not only break into the banking and finance sector but shake it up. For the same reason, they should view the current economic and labour climate as an opportunity rather than a threat. There are smarter ways to do customer experience and combining the power of outsourcing, strategy and technology is a sure-fire way to navigate a better path through the current landscape.
To learn more, visit www.probegroup.com.au/industries/banking-finance