FinTechs have emerged as disruptors in the financial industry, offering consumers a wide range of services.
However, a recent report titled “The Issuers Report 2023: FinTechs’ Instant Payments Mismatch” reveals a discrepancy between what FinTechs believe consumers want and what consumers actually prioritize. The report, a collaboration between PYMNTS and Ingo Money, provides insights into the adoption and usage of instant payments by consumers, as well as the services offered by FinTech issuers and customer satisfaction levels.
According to the report, FinTechs tend to emphasize convenience and customer experience as their top features. However, consumers are primarily drawn to FinTech providers due to the availability of a wide array of fund transfer options and fast transactions. This disconnect suggests that FinTechs may be misreading their customers’ needs, potentially hindering their ability to provide optimal services.
The report also highlights that consumers prioritize the prompt availability of good funds when using a FinTech account. In fact, among consumers experiencing problems when depositing money, 41% identified the guarantee of good funds/speed as their primary issue, while nearly 30% highlighted this same concern when moving funds out of their accounts.
However, FinTech issuers are more likely to believe that customer experience and limited options are the main issues: 37% believe that customer experience was the most common problem for depositing funds, while 32% believed that the limited availability of payment methods was the primary issue when moving funds out of accounts.
Furthermore, more than 40% of FinTechs offer financial consultancy services in 2023, but only 2.5% of consumers use it. Similarly, nearly 37% of FinTechs offer check depositing but only 12% of consumers use it.
To bridge the gap between FinTechs and consumers, it is essential for FinTechs to align their services with consumer priorities. For instance, understanding that prompt availability of good funds and a wide array of payment options are key factors for customer satisfaction can guide FinTechs in refining their offerings.
The report further reveals that offering a greater number of instant payment options can lead to higher customer satisfaction. However, security concerns remain a challenge for FinTechs in providing instant access to good funds. Managing fraud and ensuring secure transactions are crucial for maintaining customer satisfaction in this context.
In sum, while FinTechs have revolutionized the financial industry with their diverse services, the report highlights the importance of better alignment between what FinTechs believe consumers want and what consumers actually prioritize. Prompt availability of good funds and a wide array of payment options emerge as key factors for customer satisfaction. By understanding and addressing these needs, FinTechs can enhance their offerings and continue to drive innovation in the industry.