68% of Customers Abandon Fintech Services Over Long KYC Guidelines – Could Outsourcing Customer Experience Services Be the Solution?
Fintech (financial technology) is helping to reshape the financial industry in a myriad of ways.
It has made the world of banking far more accessible. For example, you can now open a bank account online without having to go to a bank. It has also simplified the process of making payments. You can turn your smartphone into a digital wallet that can be used to make payments in your favorite stores.
Other fields fintech is transforming include investment, insurance and wealth management.
Fintech is relatively new as a general term; However, the incorporation of technology into finance has been around for quite some time – it is arguably in recent years that the industry has risen to greater heights.
In 2019, 3 out of 4 consumers used fintech services to transfer money. The industry has witnessed explosive growth, from 12,000 fintech startups in 2019 to over 26,000. Last year, the industry’s market value was just over $132 billion, and by 2026 it is expected to reach $324 billion. Some of the companies operating in the fintech space include Visa Inc. V, Block Inc. SQand MercadoLibre MELI.
What is the biggest problem in Fintech?
As these companies scale, their resources can become strained, reducing the standard of customer experience delivered – one of the key drivers of company growth. Research shows that up to 75% of customers are willing to switch brands in search of a better customer experience, which can cause a catastrophic impact on revenue growth.
One of the customer experience challenges fintech companies face is complying with local and international know-your-customer (KYC) requirements. KYC usually involves several processes, such as customer identity validation, proof of residence and proof of funding, which can be time-consuming and frustrating.
But sometimes the process can go much faster. Using old technology can cause delays in staff quickly performing KYC checks, resulting in long wait times for customers. According to Signicat’s 2021 survey, 68% of customers abandoned a financial services application due to the lengthy application process and the large amount of personal information required.
Another obstacle is meeting customers’ needs to maintain adequate uptime and responsive troubleshooting. People turn to fintech services when banks fail to satisfy their needs; However, it can be challenging for most fintech companies to offer 24/7 support to the “frustrated” customers. As fintech companies scale, difficulties in providing responsive troubleshooting for many customers can also become prevalent.
Outsourcing CX talent to close the talent shortage gap
The war for talent that started after the COVID-19 pandemic seems to have spilled over into fintech. According to a report from TDCX Inc. TDCXa digital customer experience solutions provider, 23% of fintechs outsource some customer experience services, especially artificial intelligence (AI) development, KYC verification, chat support and technical support to overcome the talent shortage.
While some businesses believe in deploying chatbots to circumvent the current CX shortage, this may not be the right solution because customers still need human interaction for branding. According to a study by Statista, 66% of customers do not feel comfortable talking to AI-powered bots.
TDCX is a player that says it helps companies operating in the fintech space to outsource the best CX services to meet the growing demand. According to TDCX, hiring the highest quality talent is possible with its cutting-edge AI-powered solution, Flash Hire, which has helped the company cut recruitment time by 62%.
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Through its support hubs spread across different continents, the company can provide 24/7 human customer support in different languages to clients, helping them build their brand and retain customers.
Data analytics forms the backbone of TDCX’s roster of cutting-edge technology solutions. The company boasts of having a strong team of data analysts and strategists who can generate actionable insights for clients from the company’s pool of consumer interaction data. For example, the company says that through its advanced sales analytics, it can provide its customers with insights on appropriate action, and help in areas such as lead generation and execution support.
Featured image by Jonas Leupe on Unsplash
.This post contains sponsored advertising content. This content is for informational purposes only and is not intended as investment advice.
