Building Consumer Trust in Fintech: What You Need to Know

Building Consumer Trust in Fintech: What You Need to Know

Fintech products aren’t always successful. As with any other tech revolution, potentially strong companies fizzle out before they were able to attract customers. Obviously, many factors impact how successful a fintech service may go on to be. That said, gaining customer trust from an early stage is key.

Fintech products involve the storage and transfer of user funds. Thus, it makes sense that new users will want to be confident that their information will be safe when using a new app or service. This means new fintech startups should develop strategies for building customer trust as soon as their products are made available. The following tips will help.

Invest in Security

This is the most obvious (but most important) step. Users aren’t going to be enthusiastic about adopting a fintech product if the development team hasn’t optimized its security.

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Of course, many users lack the technical expertise to understand whether the security protocols you implement are as strong as you claim. All they can truly refer to when assessing the safety of their information is whether there have been any breaches involving your product in the past. By investing in powerful security programs at an early stage, you’ll avoid the PR nightmares that can drive customers away.

Address Bugs Prior to Release

It’s not uncommon for app developers to rush products to the market. They assume users may be willing to overlook early bugs if they are corrected early.

For some products, this is the case. Users probably won’t delete a game they enjoy playing simply because they need to update to a new version to correct a minor functionality issue. With fintech products, however, bugs can have a significant impact on customer trust.

Again, you shouldn’t expect users to have the technical knowledge of professional developers. Even a bug that’s unrelated to security may convince users your product isn’t safe. They’ll simply assume the bug is a technical error affecting the product. They may believe that if a bug can affect one aspect of the app’s performance, it can affect any element, including security.

It takes discipline to delay releasing your app to customers. However, you’ll be better off in the long run if you take all the time necessary to limit bugs before making your service available. One technical glitch can significantly reduce your user base in fintech.

Prioritize Intuitive UI and UX

It’s always important to optimize the user interface (UI) and user experience (UX) when designing an app. Digital technology has given rise to a generation of consumers who expect convenience. They don’t want to navigate confusing steps to learn how to use an app’s features. The more intuitive the UI and UX, the more customers will enjoy a product.

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This is particularly important in the fintech industry. When users are providing financial information, they want to thoroughly understand exactly what they are doing. A confusing UI or UX won’t simply frustrate users. It will also instill a sense of doubt. This is another reason to invest time and effort into the development process.

Be Transparent

Anyone interested in general tech news knows customers are not happy when they learn a company’s revenue model may involve selling personal information. Thus, you can easily boost and maintain overall brand loyalty by being honest and transparent about how your product earns money for the company.

Again, customers are particularly wary about security concerns when a product handles their financial information. They don’t want to worry about the possibility of your company sharing that sensitive information with third parties. Ease their concerns from the start, and you’ll attract more users.

Consider Partnerships

Cooperation can benefit both fintech companies and traditional financial institutions. This also applies to the idea of building consumer trust. Research indicates that alack of familiarity with a fintech’s brand may prevent users from embracing their services.

This makes sense. After all, customers can’t refer to a new startup’s track record if the company doesn’t yet have one. By partnering with an established brand, a startup can bring new services to customers while also leveraging the trust they have in an existing business.

These are all crucial points to remember when you are developing a new fintech product. Having a smart idea and filling a niche isn’t enough for success in this industry. You also need to take all necessary steps to ensure that users are confident your product is safe. By keeping these tips in mind, you’ll be much more likely to achieve that goal from the start.

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