In the words of Michael Leboeuf, ‘A satisfied customer is the best business strategy of all.’ This statement’s significance keeps increasing as more industries embrace consumerism, fintech being one of them. Fintech giants are waking up to the fact that understanding consumer behaviour is imperative to sustain a profitable business. The Indian fintech sector is poised to generate $200 billion in revenue by 2030.
What do consumers expect out of fintech?
Often, startups get so focused on winning the investor’s confidence that they overlook the customer’s pain points. They often forget that emphasizing the latter will hit the investment jackpot. To strategize a consumer-centric business model, it is essential to understand what consumers really want.
After the pandemic, an overwhelming number of consumers have started embracing digital transactions. Risk awareness is becoming more prominent among consumers. They are more like to buy health or life insurance. Many also prefer diversifying their investments through Fixed deposits by playing it safe.
As advisory services gained traction, more and more people demanded it to be digitized. From Wealth management, to loan solutions and investment consulting, they prefer a financial advisor in their pockets. Young consumers embody a significant part in the fintech ecosystem. Hence, fintechs need to apply a generational shift in their strategy to cater to their financial needs.
Consumers of today demand transparency. Hidden charges, complicated software, and hard-to-understand functions disenchant the customer from using the service. This pushes the fintechs to be straightforward with terms and conditions.
Last but not least, demand for unique loan solutions has increased in full swing. Issuance of loans and lines of credit to customers without a credit history. India is a $3.5 billion market today, predicted to grow to $50 billion by 2026. Currently, there are 10-15 million BNPL users, projected to reach an overwhelming number of 80-100 million by 2026.
Consumer behaviour will play a vital role in the success of fintech companies in the next decade. Hence, a customer-centric approach in their business models will give the companies a competitive advantage. Many fintech juggernauts have started revamping their strategies in tandem with consumers’ demands. Hence, we actually see fintechs addressing issues today, aside from offering beautiful feature-studded UI.