Bridging the Gap: FinTechs and Consumer Priorities for Optimal Services

The rapid rise of FinTech companies has transformed the financial industry, offering consumers a plethora of services that promise convenience and enhanced customer experiences. However, a recent collaborative report, «The Issuers Report 2023: FinTechs’ Instant Payments Mismatch,» conducted by PYMNTS in conjunction with Ingo Money, reveals a noteworthy disconnect between the perceptions of FinTech providers and the actual priorities of consumers.

The report takes a deep dive into the adoption and usage of instant payments by consumers, shedding light on the services offered by FinTech issuers and the levels of customer satisfaction they achieve. While FinTech companies tend to prioritize convenience and exceptional customer experiences, the report suggests that consumers are primarily drawn to these providers due to the availability of diverse fund transfer options and swift transaction processing. This disparity underscores the possibility that FinTechs may be misinterpreting their customers’ needs, potentially hampering their ability to offer optimal services.

A crucial insight highlighted by the report is the premium consumers place on the timely availability of secure funds when using a FinTech account. Among those who encounter challenges while depositing money, 41% identified the guarantee of secure and fast funds as their primary concern. Similarly, nearly 30% emphasized this same issue when moving funds out of their accounts.

In contrast, FinTech issuers are more inclined to believe that customer experience and limited payment options are the primary issues. According to the report, 37% of FinTech issuers view customer experience as the most common problem when depositing funds, while 32% believe that the limited availability of payment methods is the main issue when moving funds out of accounts.

Another intriguing finding from the report is that, despite more than 40% of FinTechs offering financial consultancy services in 2023, only 2.5% of consumers make use of them. Similarly, nearly 37% of FinTechs offer check depositing, but only 12% of consumers take advantage of this feature.

To bridge the gap between FinTechs and consumers, it is imperative for FinTech companies to align their services with consumer priorities. Recognizing that the prompt availability of secure funds and a wide array of payment options are pivotal factors for customer satisfaction can guide FinTechs in refining their offerings. The report underscores that offering a greater number of instant payment options can lead to higher customer satisfaction. However, it also highlights that security concerns remain a challenge for FinTechs in providing instant access to secure funds. Therefore, managing fraud and ensuring secure transactions are critical for maintaining customer satisfaction in this context.

While FinTechs have ushered in a revolution in the financial industry with their diverse services, «The Issuers Report 2023» emphasizes the importance of aligning FinTech offerings with consumer priorities. Prompt availability of secure funds and a wide array of payment options emerge as crucial factors for customer satisfaction. By understanding and addressing these needs, FinTechs can enhance their offerings and continue to drive innovation in the industry.