The idea of interacting with digital financial services is not in any sense a brand new concept, as the ability to conduct banking services via the internet has been around for more than a quarter of a century. Admittedly, for the first 10-15 years the experience was not as easy and seamless as it is today. With the emergence of the smartphone however, the number of fintech companies and the apps associated with them have skyrocketed and, in many ways, replaced traditional banks in the eyes of customers.

But even as the process of conducting financial services becomes easier by the second, the fintech industry appears to have a problem when it comes to customer loyalty. The fickle nature of the customer, the simplicity of transferring data and the ease with which a competitor can offer more lucrative deals, creates a continuous flow of customers who switch fintech solutions on the basis of a single ad or phone call. So the question that begs to be answered is, “what can fintech companies do to boost customer loyalty?”.

Where traditional banks excel

Unlike the Fintech industry, traditional banking institutions enjoy low retention rates and high customer loyalty. Just take a second and try to remember the last time you switched banks. It’s been a while, right?

One of the reasons for this is the personal touch that banks offer. Just think about it. You schedule a meeting, get to talk to a real expert on financial services who dedicates an hour of their time to look at your specific case and help you set up the best possible solution for your situation. Usually free of charge. How can the digital world of Fintech compete with that level of direct and personal customer service?

Well frankly, it can’t. At least not in the same way. What fintech companies can do instead, is to make use of the vast amounts of data available to them to create a personalised customer experience that traditional banks could never hope to match in a one-to-one meeting or phone call. Sure, the actual conversation with a real human being might be hard to replicate. But using the power of data, marketing automation, digital communication channels and timing to meet customer needs and wants is a fantastic way to leverage the lack of direct personal interaction.

Just imagine being able to pick up on subtle cues and act on them at just the right time to serve your customers with the appropriate solution or offer they so desperately need, all without having to leave the comforts of their home. Isn’t that, in all honesty, the ultimate customer service experience?

What are some ways you can build customer loyalty?

• Setting up personalised timely offers based on customer history and other relevant data.
• Allowing the customer to choose one or more channels of communication that they prefer.
• Make sure that you are always top of mind and in the customers good graces by providing valuable information, at the right time, which could improve the customer’s financial situation.
• Creating easy-to-reach digital channels of communication where the customer can interact with you to obtain answers to any questions they might have.
• Create loyalty programs which rewards the customer for staying on and engaging with your business.

The next step to a happy customer experience is, wait for it..

In our 2023 guide “The Fintech Industry Guide to Keeping Customers and Building Loyalty” we go into more depth on how loyalty programs work and what you can do to prevent customers from leaving by creating a positive and valuable customer journey.