With the internet and focus on digitization, the fintech (financial technology) industry is also evolving. One of the massive changes that have emerged in this industry is the use of digital transaction portals. The entire BFSI sector has transformed, integrating modern cutting-edge technology with Digital banking solutions to meet the evolving needs of customers. A prime observation noticed among modern customers is that they are increasingly moving towards transactional mobility. This demand has compelled the BFSI industry to form an all-round interaction with the customer and provide banking services using the power of Financial Technology.
Need for Consumer Behavior Mapping
Due to mobile phones being accessible all around the world, consumers have more access to information and diverse services. This naturally means that there is more competition among financial institutions as they try to improve their customer base.
In the current digital world, a customer can choose from a diverse variety of financial services, and since there is no limit on providers, they can also mix and match their financial service providers. Also, there can be difficulty in identifying whether a customer is demanding a financial service online or not since many customers do not actively choose a financial platform based on their need but on a need demanded by another service provider.
It is clear that the current customer base is more technologically educated and information-savvy. Hence, it is important that innovative ways are used to understand the customer thoughts, the trends in the market and understanding the reasons behind a product decision. Analyzing financial behavior and tying it with a range of demographics can help in understanding trends in customer behavior. While big data analysis can be a great way to understand this trend, traditional methods like interviews, online surveys, offline studies can help too.
Fintech and the changing financial scenario
In 2020, the world almost stood still with the COVID-19 pandemic. As most physical forms of transactions came to a halt, the fintech market emerged strongly. By automating financial services and improving on digital customer experience, banks and financial institutions were able to interact with customers and provide them the necessary services even during a COVID-impacted scenario.
Indian banks started integrating Blockchain, Cloud Computing, RPA, Data Science and Analytics, AI, and Machine Learning to understand customer requirements and upgrade their services to provide the best experience to them. Implementing advanced financial technology in several banking areas can help build and retain a strong customer base.
After all, Fintech relies a lot on customers and how they interact with Banking services. As future customers become more tech-savvy, fintech will continue to evolve and its role will be stronger in the financial systems of our country and the world as a whole.
As Fintech becomes a part of our lives, BFSI industries should start adapting to the changing scenario and understand ways to map customer behavior. Mr. Mujib Mundewadi has been kind enough to offer a 2-hour long Masterclass on the topic.
He has had around 25 years of experience in the banking sector and has worked with investment negotiation, financial structuring, cross-border taxation solutions, and finance strategy too. MBA aspirants, BFSI professionals, Finance Management and New Age Banking aspirants, Fintech aspirants, and consumer Behavior Enthusiasts can attend this Masterclass.
Let’s involve and invest in such a valuable lesson on fintech and customer behavior mapping. Register Now.