As the world is currently evolving and to integrate fully into it, fintech firms must be ready to grab opportunities of what the future has for them. Finance has been in existence for a while and being introduced into this sector, fintech could help to diversify it. Fintech has constantly diversified how we make, manage and spend our money in our little circles.

Clearly stated by the industry publication on the future of fintech, in June 2021 there were about 24% more startups that are fintech when compared to 2020. This shows a significant growth in the fintech sector. The global sector of fintech is expected to be worth $340bn by the year 2026. There is still the existence of traditional banking that has been flourishing over the years, but fintech has been proven to be revolutionary. It has created a more innovative and financial ecosystem that’s inclusive to everyone.

If there is no constant evolution in fintech, then companies are only stuck on what they know and what’s outdated in their echo chambers, believing nothing. This means they are stuck at a particular point without any difference. Challenging ways of thinking and bringing up ideas means there is room for improvement and this leads to innovations. 

Here are five ways in which fintech companies might have to evolve to serve a better future:

Better Customer Experience

The traditional banking system has been accused of prejudice against those who are not wealthy. Also against those who belong to a racial minority. But regardless, anyone from any background needs access to the financial sector to manage their money. This has made the younger generation that felt left out, venture and become the biggest fintech market. Fintech could evolve on customer interaction regardless of the wealth status of their clients and stand them above traditional banking. 

Sofia Nunes, co-founder and head of diversity and inclusion at cloud banking platform Mambu pointed out that their research found that 37% of banked and 35% of unbanked rely hugely on online search for information on authentic products compared to how they do in their banks. A lot of fintech companies could get close to their customers by implementing a newsletter which will serve as an avenue to provide their users with tools and information on how to manage their funds.

Increased User Access

Even though fintech has been proving to offer more access to users compared to the traditional banking sector, there are still places that need efficient attention. Fintech could evolve in making sectors more inclusive and close gaps in access.

Fintechs could create an accessible technology that will help users with disabilities to navigate better through their online apps. Fintechs must know that humans are diverse and they must meet the needs of their users regardless of their identity.

Fintechs could improve on Artificial intelligence and algorithms

Fintechs are backed by artificial intelligence (AI) as well as algorithms. Ideally, fintech evolves for the future through diversifying its user data. This is to ensure services are free of biases that might come from the racial and socio-economic backgrounds of consumers.

Problems might arise when a fintech company relies on data that is old and has been in existence for a while. These data are used in predicting the pattern and purchasing habits of future customers. It helps fintech to solve the what and why problems. In the future, this could be solved by employing a diverse team of data scientists.

Fintechs could improve on service and solution they offer

Fintech can serve a lot of options as a financial service. It can be used for personal banking, buying digital money, saving or managing one’s investment. Fintechs could easily evolve and offer multiple services in one place. Though customers could easily download other apps and carry out their tasks, fintech can save their user’s time as they carry out tasks, faster and efficiently with more options.

As the technology is getting evolved and a lot of people are becoming internet savvy, there are a lot of users, slowly getting into fintech and their needs must be met.

Communication

Communication is gold, and a lot of organizations lack it, including fintech. When there is a new improvement, development or product, a company is supposed to communicate to their users. Strategise and come with a good copy. A good copy ensures that the message is right for the intended audience. That way, it’s able to sell to the intended audience.

Fintechs need to research their audience. Language and tone matter deeply. If you don’t set the right language, you will fail the mark. Users value communication. A lot of companies get lost on the web when they attempt to capitalize on the masses, rather than trying to connect with customers. Companies are supposed to highlight the right communication that works and follow it. This establishes a customer’s relationship.

Efosa Obasuyi
Cofounder/CEO of Adancly (Adancly is a Lending Tech Start-up for SME’s in Africa)
Senior Product Manager GRICD integrated Services Limited