FinTechs Focus on Customer Experience, Users Want Faster Transactions

FinTechs issuers have revolutionized the banking and lending sector, enabling consumers to get easier access to their finances and allowing them to manage their money more effectively.

Through the introduction of various personal finance management tools, such as saving pots, in-app budgeting capabilities and virtual cards, consumers have been given better control over their finances.

However, although FinTechs platforms have redefined the customer experience by making financial services more user-friendly and intuitive, PYMNTS research reveals that customers are not satisfied with these services, evidence of a disconnect between what issuers believe their customers want and what consumers prioritize.

“The Issuers Report 2023: FinTechs’ Instant Payments Mismatch,” a PYMNTS Intelligence and Ingo Money collaboration, provides a snapshot of the current state of FinTechs services in the U.S. and their customers’ satisfaction with the money mobility capabilities they provide.

According to the report, peer-to-peer (P2P) transfers are the most popular services among consumers, with 51% using them for money-in transactions and 44% for money-out. This represents a roughly 20% increase in Q3 2023 compared to the same period a year ago. The survey found that FinTech issuers are increasingly offering P2P transfers to meet this demand.

While FinTech issuers emphasize convenience and customer experience as their top features, consumers prioritize a wide array of fund transfer options and fast transactions. The availability of multiple payment and fund transfer options was cited by 56% of consumers as important and 26% citing it as the most important reason for using a FinTech provider. In contrast, only 19% and 12% of FinTech issuers considered transfer options and speed, respectively, as their customers’ top priorities.

There is a mismatch between FinTech issuers and users when it comes to understanding customer needs. FinTechs recognize that their customers encounter issues when depositing or transferring funds, but they fail to identify the most significant concerns.

Consumers cite prompt availability of funds as the issue they encounter the most, with 41% reporting it as the most common issue when depositing money and 28% saying it was a problem when withdrawing funds.

The research also highlighted the importance of security in driving customer satisfaction.

While offering more instant payment options can increase satisfaction, it also increases the risk of fraud. Less than half of FinTech issuers reported that their customers have not experienced security issues when depositing or receiving funds. In comparison, 68% of top-performing firms were more likely to have no security issues when using money-out features, indicating the importance of mitigating security challenges in attracting consumers.

FinTech issuers have focused on improving their financial services, but providing access alone is not enough to satisfy customers. By providing more payment options, the prompt availability of good funds and stronger security, FinTech firms can win over more users.

As technology continues to bridge the gap between physical and digital banking, providing personalized services that meet customers’ specific needs is essential for improving the overall customer experience and ensuring loyalty and retention.