FinTechs are reimagining the entire banking space by revolutionizing several processes and services. They have made ‘finance’ seamless and quick while taking a paperless, presence less and cashless approach.
At present, India comprises of 2000+ Fintechs, most of which are based out of Bangalore. With a sudden rise and success of Fintechs in the financial arena, the question arises – How have Fintechs navigated so quickly?
Here are some Fintech growth hacks-
- Technology is the KEY- Though technology was introduced to the banking system in the 1970s, it was dominantly a back office tool. Fintechs revolutionized and placed themselves as “Digital first” banks, a fairly new concept in India. They strategically leveraged technology to their benefit and offered innovative products and services that addressed customer problems and enhanced customer experience.
- Innovation at the forefront- While Fintechs introduced new products and services for customers, they also continually upgrade themselves with technology advancement for better innovation. For instance, with the help of big data analytics, Fintechs analyse and synthesize customer journey. This innovation has changed the landscape of banking as it has enabled financial institutions to offer customer centric services.
- Using psychological tools- Fintechs do not wait for the need to arise rather, they leverage technology to understand customer preferences, needs, pattern, behaviour, etc. and create a perception. For instance, Buy Now, Pay Later, a Fintech innovation, allows customers to purchase today and pay on a later date. This innovation has allowed customers to indulge in purchases and extend their budget.
- Improvising customer experience- Fintechs have introduced a contemporary style of functioning and generating business. By shifting from a Capex model and reducing their Opex significantly, Fintechs are passing the extra benefits to their customers.For instance, Fintechs offer cashbacks, rewards, vouchers, discounts etc to attract customers to transact with them while ensuring the customers benefit as well.
- Customer-centric approach- Until recently, financial institutions followed a business first approach rather than a customer first approach. Meaning, banking was more money centric than it was impact centric. Fintechs introduced an alternative approach by putting customers on top priority thereby, creating an impact. Today, customers are swamped with options and benefits which means, financial institutions require a unique selling proposition.
- One-stop solution- Whether it is lending or smart investments, Fintechs have revolutionized the financial ecosystem by aligning technology with finance. They offer seamless solutions that allow customers to transact, invest, insure etc. on one platform, on a single click.
- Strategically scaling up- Instead of cramming into already exhaustive spaces, Fintechs are introducing fresh innovations to the market. For instance, CRED’s Book Now, Travel Later offering- With travel rules and regulations changing daily, CRED now offers a plan that allows its customers to reserve hotel rooms today and pay as and when they travel. Since this is insured by CRED, customers have the liberty to travel whenever they feel safe while not missing out on their choice of hotels.
Fintechs are slowly hacking customer psychology and launching products and services that resonate with customer needs and preferences. At present, although the regulatory framework does not allow Fintechs to operate solely, they have successfully found a mark for themselves through some unique hacks.