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9 Ways Fintech Companies Build Trust With Users
Alt: How to Convince Consumers to Trust Fintech

When it comes to financial technology, trust is everything. You wouldn’t hand your wallet to a stranger, just as you wouldn’t share your financial details with just any digital application. 

Your users think the same way. Before they use a fintech service, they want to know: Can I trust it? What safeguards are in place to keep my money safe? Will the company make mistakes right?

Companies in the fintech space have their work cut out for them. Here are nine ways leading ones win their users’ trust:

1. Be Transparent

Defaulting to openness is critical not just internally, but whenever you’re dealing with customers. One study found that 94% of consumers said they’re loyal to brands that are transparent. What’s more, 73% of them agreed they’re willing to pay more for products from transparent companies.

Sometimes, transparency is easy: When you roll out a new feature, you’re probably excited to tell customers about it. Transparency is tougher — but also more important — when the news is bad. If a breach befalls your business, you have an obligation to tell customers about it. Even without a breach, customers deserve to know what data you collect and how it’ll be used.

2. Prove Your Worth

The fintech sector is expected to grow by hundreds of billions of dollars through 2022. If you want customers to choose you, it’s critical to explain how you can help them. 

Consumers rush toward new trends, but that doesn’t mean they’ll fall for half-baked marketing schemes. You have to gain their trust by showing exactly what your software can do for them.

What does your service do better than anything else on the market? What makes your mission uniquely meaningful? Show, don’t tell: Use testimonials and demonstrations to drive home your product’s worth.

3. Use Company Funds Wisely

Let’s be real: No one is going to trust a financial technology company that doesn’t use its own money wisely. 

Keep your books straight. Even if you aren’t required to by law, announce your profits quarterly. Use services like automated bill-pay to develop a reputation for paying others promptly.  

Money should be used not just wisely, but ethically. Donate to causes you care about, and pull financial support from partners that operate underhandedly.

4. Establish Partnerships

Consumers who are unfamiliar with your company’s technology may be wary at first. Give them peace of mind by building relationships with other companies they might already be familiar with.

A good way to get your name out there? Competitions. Every year, Visa partners with fintech startups that win innovation challenges. Not only do the winners get to trade on Visa’s name, but they benefit from deep financial expertise that newer companies simply don’t have.

5. Innovate Constantly

The fintech sector does one thing better than perhaps any other: innovation. In fact, most consumers expect tech companies to be pushing out regular updates to improve their software. 

Always be on the lookout for potential upgrades. Reach out to your most loyal customers to find out what they’d like from your next iteration. 

Updates cultivate trust by showing customers that you’re committed to delivering the best, most secure product on the market. Just be sure each iteration actually delivers value: Unnecessary updates can be tedious and push customers away.

6. Show Off Your Security

Does your product use end-to-end encryption? What about two-factor authentication? What steps do you take to prevent malicious insiders? 

Those might sound like in-the-weeds details, but customers care about them. Even if no money is taken, a stolen identity can take years to recover from.  

Highlight your security features on your website and social media. FAQ pages naturally attract customers seeking information, so Chime, for example, uses this space to discuss online debit card EMV chip technology and how it protects the customer. The more concrete and public you can be about data security, the better.

7. Focus on Customer Service

No product is perfect. Even fintech tools that have been painstakingly developed have bugs. What separates trusted ones from the rest is how they address users’ problems.

Take each critique seriously. Thank customers for bringing errors to your attention. Follow up promptly once the problem has been resolved. Give gift cards to users who help you solve critical issues. 

It’s also a good idea to send out surveys to inquire about your customer service. Customers will appreciate you asking for their feedback. The more responsive you are to your customers, the better.

8. Provide a Free Trial

It’s not only security that consumers are worried about; it’s also the product itself. To convert skeptics, consider offering a free trial. 

In the wake of the COVID-19 crisis, for example, dozens of fintech companies are giving consumers free access to their tools. Once the pandemic is over, many of the users who took advantage of the free trial will decide they want to continue using the product.

9. Be Social

Social media is the new town square. Fintech companies that want to be part of the conversation need to use it wisely. Users trust brands that make an effort to create community. 

To build a community online, however, you need quality content. Aim for a good mix of text posts, images, and video. Respond quickly to customers who tag you. Be positive and lively. 

Fintech is the future, but it still has to win over a lot of new users. Rather than worrying about gaining trust back after you’ve lost it, be proactive. Use these tips to build trust early and often.

 

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Konstantin Rabin

Konstantin Rabin

Head of Marketing

Kontomatik

Member since

18 Aug 2015

Location

Warsaw

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This post is from a series of posts in the group:

Financial Inclusion

The financial services industry has much to contribute to the UN and World Bank goal of full financial inclusion by 2020. This group will focus on industry contributions, ideas, barriers and enablers.


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