Fintech companies don’t have the luxury of a legacy and big name to ensure trust, making this one of these firms’ main focus. Zaynab Ahmed of SpotCap explains how building trust should be a key area of opportunity.
Fintech is one of the UK’s fastest growing sectors, adding more than £6.6 billion into the economy. The EY Fintech Adoption Index indicates that adoption in the UK (42%) outperforms the global average (33%), suggesting we have reached the milestone of ‘initial mass adoption’. However, gaining the trust of clients remains the greatest challenge for marketers. Is it safe? Am I giving up my privacy? Is it all too new to know what will happen? It’s the job of marketers and the industry as a whole to answer those questions and reassure both businesses and consumers by following the all important three Cs - Community, Commitment and Communication.
Community (and Transparency)
To build trust you must build a relationship. To build a relationship you have to openly share information and enable your clients to engage with you, and among themselves.
This is exactly how Monzo’s community forums function. Tom Blomfield, CEO of the app-based bank explains: "From the very early days we wanted to do a couple of things differently. One was involve our community in basically everything". More than a charming idea, the bank goes to great lengths to not only understand their customers, but to involve them. Forum sections include ‘Sneak Peeks’, ‘Ideas’ and ‘Customer Support’; these aren’t graveyards for rants, but a home for ideas that Monzo staff frequently engage in dialogue with customers over. The result? A meaningful two-way relationship for both parties and a sense that the company has a genuine interest in their customers’ opinions.
By embracing legislation, clients can be assured that their data is valued and—in turn—that they are valued too.
Launched in January 2018, the Open Banking initiative is designed to encourage competition and innovation in banking. By consenting to provide account information to third parties, businesses and consumers can access to tailored products and services. This, in conjunction with GDPR, the General Data Protection Regulation which protects the data of EU citizens, should provide further assurance that a range of financial products available to businesses and consumers are regulated and trustworthy.
However, with major banks including Barclays, RBS and HSBC all asking for extensions to comply with the regulation, we’re yet to see the extent to which fintechs and Open Banking can truly impact on personal and business banking. If incumbents and newcomers commit to meeting these new rules, companies and consumers have a bright future ahead with improved financial experiences that they can trust.
Focusing on what your clients are interested to hear rather than what you want them to hear exhibits a real understanding.
Wealthsimple, an online investment management service, has realised that faith in financial expertise can be delicate. Their Superbowl advert concedes that their target audience probably receives advice at every turn. Focusing on the complicated nature of investing and how daunting it can be, the company positions itself as a straightforward voice amongst the confusion. Wealthsimple takes its communications seriously, and has worked with an Oscar winning documentary maker for a series of videos titled ‘Investing for Humans’. The budget may be big, but the concept is simple: People talk in to a camera giving their opinions on finance. The strength of this campaign lies in what Wealthsimple chooses to communicate to their audience: By featuring the voices of others, they show that they take their time to listen.
Trust can also be also built knowing that you are dealing with real humans, something we here at Spotcap openly embrace. Our communications and images feature team members, partners our clients to highlight the individuals behind the loan applications. Where clients expect human interaction, they expect an improved level of service. And what they value most is a company which takes its time time to get to know them. The result? Increased trust in your product and your team.
If these behaviours become second nature,the credibility of fintech will increase.The fact we use ‘tech’ in finance isn’t a new thing, but what we label as ‘tech’ is changing. It’s up to marketers and the wider industry to build trust during this process.