The environment in the financial service industry is complicated, and this makes business in this industry not so customer-friendly. However, FinTech has been introduced for more than five years now and promises a vast scope for improving customer experience.
The FinTech space has a large room for improvement in the traditional FinServe (Financial Service) industry ranging from signups to underwriting. In the new digital landscape banks and insurers have learned all about how to leverage ways for success through
FinTech services. Not only is this digital service transition taking place faster than anticipated, but has also gained significant momentum disordered what insurers used to do. App developers understand the opportunities and challenges offered by the FinTech
revolution. You need to understand how these have affected the finance industry and business in order to create FinTech mobile apps that can be of maximum benefit to the finance industry and prevent a financial crisis.
FinServes using FinTechs for all insurance related processes
With the increased use of mobiles and digital revolution, every business has been disrupted, and financial services are no exception to this. There has been a drastic change in the way people are now accessing financial products and services. Customers are
now looking out for FinServes that offer mobile apps and wearable technology to uninsured millennials. Insurance companies associating with FinTechs is on a rise and FinServes are increasingly leveraging new technologies to enhance customer experience. All
insurance related process platforms ranging from claims, underwriting, distribution, and brokerage are being automated in innovative ways.
Customer expectations have changed
Customers are now expecting high-quality digital experiences from their financial service providers as they are being offered excellent experiences by other companies like Google, Facebook, Amazon, Apple, etc. The accessibility, convenience, tailored products,
and other innovative solutions provided by FinTech has disrupted the traditional financial services industry and taken customer expectations to a much higher level.
Customers sought an enhanced experience from services
With increasing competition in every industry, it has become difficult to reach out, engage, and retain customers. However, FinServe companies using mobile delivery for their operations can easily grow their customer base with their mobile applications.
According to a survey, FinTech is expected to be customer-focus by nearly 75% respondents out the 432 respondents surveyed. About
84% respondents expect that in the next five years, FinTech mobile applications will show the largest growth in usage. This has provided insurance companies with great opportunity for adapting to changing customer behaviours.
How Can FinServe providers make the best use of FinTech? Though InsurTech was introduced in 2015, it has a great potential in the near future. So, a mobile app development company needs to adopt many different strategies to make itself ready
for the quickly evolving InsurTech environment. Here are a few ways which may be helpful.
- Accept the changing market scenario: As they say, the only thing which is constant is change. So, you need to be open to the adapting changes in the competitive market and engage with technology solutions to help insurers come up with new
ideas that can change their organizational culture and identify areas for future growth.
- Invest in technology: You need to implement innovative technology by investing in ventures to sideline your competitors in the FinServe industry.
- Work in partnership: You need to collaborate with partners beyond the FinServe industry who have experience and can come up with new ways to generate value.
- Analyse your success goals: Insurance industry is one of the most complex industry to disrupt. So, plan your goals for the future by cautiously investing in digital technologies that are easy to implement and considering the opportunities
available for improving business models.
Benefits of using InsurTech Not only is Fintech challenging the traditional business models and disrupting them, but it is also inspiring new solutions and adding value to the customers. This can be explained as follows:
- Innovative solutions: FinTech combines your current business demands with IT to provide innovative solutions for maximizing the speed, cost efficiency, and flexibility of your services.
- Superior customer engagement: FinTech revolution has increased customer engagement as it has provided them with many convenient solutions in every step of their journey such as allowing access through mobiles. This makes the business of
financial service companies much more effective.
- Increased customer retention: Fintech allows insurers to focus greatly on customer needs and target their pain points. This helps them provide effective solutions through different market segments and improve customer retention.
Challenges faced by InsurTech FinServes are facing many new challenges by entering the FinTech landscape. A few key challenges can be summed up as:
- IT security concerns: The security challenges of the IT industry make it a challenge for customers to enter the FinTech environment with complete reliability.
- Frictions in customer journey: With the introduction of FinTech, customer expectations have reached a whole new level. However, they still experience a lot of friction throughout their journey as their very high expectations are still not
- New and different business models: As the traditional insurance industry remained unchanged for over a century, the change in business models is not easily acceptable. Failure to meet user’s rapidly changing needs with time creates a challenge
for FinTech adoption.
Final words Statistical estimates have predicted that within the next 3-5 years, it is expected that the cumulative investment in
FinTech will globally exceed $150 billion. It helps redefine how you borrow, save, move, invest, store, spend, and protect money in innovative ways. Thus, there is a need for insurance
companies and mobile app development companies to recognize the potential of FinTech and adapt it to evolve in the finance business market otherwise they can lose their significant business share to their competitors.