Connect with us

Finance

TARGETED MESSAGES, MULTIPLE TOUCHPOINTS – FINANCIAL SERVICES IN A DISRUPTED WORLD

Alisha Lyndon, Founder & CEO, Momentum

 

The financial services industry stands at a crossroads. As 2021 looms, trying to determine what will happen feels like a futile exercise. In such uncertainty, it can feel best to fall back on tried and trusted approaches. But when everything has changed, including the needs and expectations of customers, how do the myriad of financial services organisations targeting businesses plan for what comes next?

One of the challenges they face, beyond the continued disruption everyone is wrestling with, is the threats Fintechs pose. While there is a case to be made that no single FinTech is going to rival a major finance corporation, the fact is that they don’t need to. Unencumbered by legacy systems and footprints, FinTechs are free to focus on delivering a high-quality customer experience in a number of specific areas. For establish providers, this means they could be faced with a variety of different competitors across multiple business units and lines of service.

On top of this is the changing nature of customer relationships. Traditionally, financial services organisations might have enjoyed relationships of 20 or 30 years with their customers. Now, as digital tools mean those buyers are no longer restricted to whichever provider has a physical presence nearby, providers need to come up with new ways of building and maintain relationships.

It isn’t just in the customer experience arena that established players are having to adapt. Increasingly, FinTechs are hiring sales forces more akin to tech start-ups than traditional financial services operations. To support these teams, they’re deploying automation technologies and adopting agile, reactive and highly targeted marketing activities.

Alisha Lyndon

Why? Because as we’ve seen from the latest Momentum Customer Buying Index notes, 42% of large enterprise buyers across all industries say they’re finding it harder than before to make buying decisions.

Aside from the obvious concerns regarding revenue and cash flow, and question marks over government support and how future lockdowns could affect businesses, part of the issue could be down to how vendors sell to their customers. The Index found that just 13 per cent of buyers believed their vendors fully understood their current business challenges and just 14 per cent said they were proactively kept up to date with the latest developments by vendors. From a financial services perspective, this could mean poorly tailored products, or trying to push services such as loan and overdraft facilities that do not meet the requirements of the business.

This paints a damning picture of the state of enterprise sales and marketing efforts – at a time when everyone needs to be securing revenue, a failure to meet customer expectations will severely hamper their overall performances. How, then, do financial services provider ensure that their campaigns aid sales teams in delivering what potential customers are looking for?

 

Relevance, relevance, relevance

It is not all bad news – the Index highlighted that nearly three quarters of customers are open to more communication from vendors, highlighting the opportunity on offer for those providers that get it right.

But what does that ‘right’ look like? According to Pete Markey, Chief Marketing Officer at TSB Bank, “the best vendors that I’ve worked with are the ones that don’t just arrive and give you an off-the-shelf presentation, but actually really take the time. It doesn’t have to be perfect, but you need to have some basic understanding of the business you’re presenting to, and come in with some knowledge to make recommendations based on facts.”

In other words, approaches need to be relevant and tailored to the business in question. This is complicated, however, by the fact that selling any service or product to services usually involves multiple stakeholders and decision-makers. Gartner states that “the typical buying group for a complex B2B solution involves six to 10 decision makers‚ each armed with four or five pieces of information they’ve gathered independently and must deconflict with the group.”

So, not only do financial services companies need to ensure that the support they provide is relevant to the target business, but that it resonates with potential decision-makers too. This is why it is so critical to have a variety of channels in action across a campaign, bringing together multiple tactics. These include earned, owned and paid, as well as strategies that incorporate account-based marketing, whereby content, collateral and distribution are targeted at specific contacts and decision-maker roles across one business.

In fact, 60% of respondents to the Customer Buying Index said ABM content is valuable when it comes to selecting suppliers. This aligns with the Gartner comment above and highlights how critical ABM can be in making sure providers are influencing which pieces of information are being used in the decision-making process.

It is clear from the research that many providers are struggling to align with changing customer needs, irrespective of sector. In financial services, this presents an opportunity to try new approaches when developing campaigns and content. Business customers want relevant information, and they want partners willing to communicate.

As we approach the end of the year, businesses in all sectors have a decision to make. Do they accept that they are operating in a world of constant disruption, and therefore look at how they can deploy new approaches to secure sales, or do they try the tactics that might have sometimes worked pre-2020? The choice financial services organisations make now will go a long way to determining how well they perform in the coming twelve months.

 

Finance

HOW COVID-19 HAS RESHAPED THE PAYMENTS LANDSCAPE

By Mohamed Chaudry, Group Chief Financial Officer of FoodHub

 

The year 2020 may well have sounded the death knell for the saying cash is king. As the pandemic took over our world, consumer behaviour altered considerably as people embraced contactless payment, e-commerce and delivery services for many of the things we once handed over notes to buy.

Finextra reports that research carried out by YouGov for the ATM network Link found that 58% of Brits are using cash a lot less often thanks to the pandemic, with 54% avoiding it altogether and using alternative payment methods.

Some 76% of those questioned by YouGov added that they think the crisis will affect their future use of cash over the next six months.

 

Adapt to survive

Many businesses, particularly those in the food sector, quickly worked out they needed to pivot and adapt if they were to survive. Social distancing measures, lockdowns and the economic downturn hit the hospitality industry hard.

Safe and convenient online payments provide food businesses with a solid foundation from which to operate. The year 2020 saw the rise of payment gateways and the size of the market is likely to escalate in the coming months, giving online merchants more choice over the gateways they choose to work with.

Many of these platforms are embracing the changes in innovative ways, adapting to the altered way of life and creating different ways to facilitate recurring online payments and members’ due models. They can also put in place order ahead services for restaurants and expanded delivery options.

 

‘Seamless’ payments process

As lockdown restrictions continue to drive more people online, the e-commerce industry needs to offer seamless online payments to maximise its soaring popularity. The right payments provider should be able to guarantee security, offer access to fast-growing markets and a plethora of relevant payment methods for each market, all components that provide expansion opportunities and a better consumer experience.

Payment providers allow food businesses to focus on their core business and meet new customer demand while they take over the non-core competency tasks. Platforms such as online food portals need to design their site or app to make it as easy as possible for merchants to onboard and customers to use.

As the use of online payments racks up, online security has never been more important. Increases in one inevitably result in the increase of fraud or cyberattacks. Platforms and businesses must ensure customer data is protected. Payment partners can ensure security is key, their greater size and expertise providing the added edge to small businesses that do not have that capability.

 

Building a loyal customer base

Payment security is what will encourage—and keep—customers who haven’t previously used online food portals. Building a loyal, local customer base can encourage businesses to consider expansion—perhaps opening more venues in their region or county or even nationwide.

Promoting the ways in which a platform can benefit customers and a community—in the midst of a pandemic, for example, many people will be conscious that their local takeaway/restaurants, etc., are suffering and they’ll be anxious to help—is another way to broaden a platform’s appeal. An app that doesn’t charge a service fee or take a commission from its partners is one way to do this.

Covid-19 has accelerated consumers’ whole-scale move to online payments faster than anyone can have imagined, and they want convenient, relevant and secure payment services for markets that have previously been served mainly by cash or card.

The pressure is on for retailers (and especially food retailers who want to survive) to ensure they can meet this demand.

 

Continue Reading

Finance

2021 FINTECH PREDICTIONS

2020 has been a year like no other. The way we live, work, socialise and more has completely changed as we found ourselves in a new world.  Of course the fintech industry was no exception and had a challenging year that resulted in great successes and accelerated growth. Certain elements such as mobile payments have been implemented far quicker than anticipated at the start of the year fast tracking past projections by in some cases years.

So what can we expect in 2021? With better virus management, treatments and vaccine programmes rolling out worldwide we can start to cautiously anticipate a slow return to normal but what does this mean for fintech? Björn Goß, CEO and Founder of Europe’s leading mobile wallet Stocard,  looks at what we could see in the next year from the industry

 

A change in how we pay 

The pandemic has accelerated the digital services industry as people were forced to integrate COVID-19 friendly payments.  We have thus seen an increasing amount of solutions offered by fintechs such as for trading or peer-to-peer payments. This openness for digital solutions has allowed fintechs to pass the initial phase of growth.

We fully anticipate that now people have seen the benefits of digital payments and services that there is no looking back. In 2021 investment in mobile and contactless services won’t just be limited to major players but also for smaller businesses who are expected to facilitate digital payments by consumers.

In addition we are also already starting to see indications that the upper limits of payments will increase from £40 to £100 in the UK making contactless even more appealing for organisations and consumers alike. We can also expect more focus on value added services such as mobile loyalty cards integrated into a smooth payment experience.

 

The rise of the super app 

As more of the services we use to lead our lives move over to our phones we anticipate more of the so called ‘super apps’, like we’ve seen in Asia.  Consumers search for simplicity and typically favour one app that has an intuitive and easy to use interface that allows them to do everything they need in one place. We expect that these super apps will have an accelerated growth in 2021 following the pandemic as users seek to streamline their digital services and use trusted, simplified apps.

We therefore expect a merging of shopping, payment and financial services in one wallet app. The advantage here is that the consumer can choose which elements are the most important to them based on their individual needs. It can therefore provide the user with an attractive proposition as they know they can access all key services in one place.

 

More regulation, more choice 

In 2021, Payment Service Directive 2 (PSD2) will come into play ending the decades long lock in effects of banks that has dominated the industry and allowing fintechs access to customers’ bank accounts. For years financial institutions have sought ways to work around the PSD2 regulation and lock in consumers and provide them no choice.

This mandatory change will enable consumers better access to fintech services that are more convenient and effective for individual needs. This will drive the next wave of growth and 2021 will see consumers have the power back in their hands when it comes to financial services.

As more providers enter the market to offer financial services we expect lots more debate and discussion around regulation in 2021. For example there has been talk of legislation where banks are incentivised to increase the wealth of their customers and get sanctions imposed when they sell products that are not in the best interest of the customer; through this, providers would need to focus more on offering and selling relevant, beneficial products instead of the ones that bring them the highest margin.

 

Is buy now, pay later here to stay? 

Over the last year we saw a rise in buy now, pay later (BNPL) services as consumers turned to online shopping. Recent research found a 168% increase in buy now pay later apps this year.  Many consumers saw this option of purchasing as less of a risk and will have enjoyed the convenience of it during lockdowns.

That being said: the high growth statistics are only an acceleration of this trend caused by the covid-19 pandemic, and despite its recent popularity the overall share of wallet of BNPL remains very low.

In 2021 we will see whether the shift towards this new way of payment is a short term trend or a long term change. BNPL options both instore and online will become increasingly accessible for consumers due to all the investment made by retailers and payment providers. However, at the same time there has been much discussion around regulation for these services which may slow down the growth they are currently experiencing.

 

Europe’s hidden success stories 

2021 will be a growth year for European fintech companies. Having already had a strong year the continent will build on this as it continues to innovate in the sector. Maybe surprisingly, big and really successful companies are already substantially coming from outside of the big hubs of London, Paris and Berlin.  What we can expect is greater offerings from outside of these big hubs from less expected places across Europe.

So as you can see 2021 is set to be an exciting time for fintech. More regulation leading to greater choice, a permanent change in consumer behaviour driving digital services and new hubs of innovation all combine to make fintech a very exciting industry over the next year.

 

Continue Reading

Magazine

Trending

Finance3 hours ago

HOW COVID-19 HAS RESHAPED THE PAYMENTS LANDSCAPE

By Mohamed Chaudry, Group Chief Financial Officer of FoodHub   The year 2020 may well have sounded the death knell...

Business4 hours ago

CREATING A PEOPLE-CENTRIC WORKPLACE CENTERED ON FLEXIBILITY, EXPERIENCE AND WELLBEING

By Anne Marie Ginn, Head of Video Collaboration, Logitech EMEA   The light is appearing at the end of the...

News4 hours ago

UK OPEN BANKING FINTECH YAPILY ANNOUNCES EXPANSION IN VILNIUS

Yapily, a London-based fintech startup, has announced plans to set up in Vilnius, the company’s third European office. Yapily joins...

News4 hours ago

FINTECH EEDENBULL SECURES PAYMENT TECHNOLOGY DEAL WITH NATIONAL AUSTRALIA BANK

EedenBull has announced a five year agreement with National Australia Bank (NAB), which allows the bank to deploy EedenBull’s innovative...

Finance4 hours ago

2021 FINTECH PREDICTIONS

2020 has been a year like no other. The way we live, work, socialise and more has completely changed as...

News4 hours ago

MARQETA ANNOUNCES PARTNERSHIP WITH GOLDMAN SACHS ON MARCUS CHECKING OFFERING

Marqeta’s modern card issuing platform will be leveraged by Marcus by Goldman Sachs to build new digital banking offerings.    Marqeta,...

Finance2 days ago

MAKE 2021 THE YEAR YOU DRAW UP A PERSONAL BUDGET

By Neli Mbara, Certified Financial Planner at Alexander Forbes   Budgeting is the most important thing you can do to manage...

News2 days ago

FINTECH EEDENBULL SECURES PAYMENT TECHNOLOGY DEAL WITH NATIONAL AUSTRALIA BANK

EedenBull has announced a five year agreement with National Australia Bank (NAB), which allows the bank to deploy EedenBull’s innovative payment...

Finance2 days ago

GEOSPATIAL DATA VISUALISATION MAKES SENSE OF MASS OF COMMERCIAL PROPERTY INSURANCE DATA

Heikki Vesanto, Manager GIS Data Science, LexisNexis Risk Solutions UK & I   Like most areas of the general insurance...

Top 102 days ago

A GUIDE TO HMO PROPERTY INVESTMENT

Many experienced property investors are turning their attention to HMOs and achieving much higher rental yields as a result. Find...

Finance2 days ago

PROTECTING THE DIGITALLY-EXCLUDED: BIOMETRIC IDENTIFICATION ENSURES ACCESS TO PAYMENTS IN A CASHLESS WORLD

By Vince Graziani, CEO, IDEX Biometrics ASA   The events of this year have exacerbated a number of challenges for...

Interviews2 days ago

‘GLOBAL TRADE IN 2008 VS 2021: GLOBAL IMPACT, DIFFERENT CHALLENGES’

A Q&A with Nawaz Ali Head of Insights at Western Union Business Solutions who draws comparisons between the financial crisis...

Finance2 days ago

FOUR WAYS OF FINDING THE SUPPORT AND RESISTANCE LEVELS

Support and resistance levels are mainly conventional values where a large number of orders assemble to stop a prevailing trend...

Finance3 days ago

TAX-FREE SAVINGS ACCOUNTS OR RETIREMENT ANNUITIES: KNOW THE SAVINGS PRODUCTS AVAILABLE TO YOU

By Michael Kirkpatrick, head of individual consulting best practice, Alexander Forbes   The start of a year is a great time...

News3 days ago

FROM PLASTIC WASTE TO PAYMENT CARD

Giesecke+Devrient invites to join the cause of saving the oceans.   Giesecke+Devrient (G+D) and the environmental organization Parley for the...

Top 104 days ago

AML SYSTEMS FOR THE CRYPTO MARKET – HERE’S WHAT YOU MUST KNOW

In the modern world, criminal activities have taken the virtual road and fraudsters have developed highly sophisticated ways of executing...

Finance1 week ago

DISRUPTING DATA ASSUMPTIONS: WHAT FINANCE MARKETERS NEED TO CONSIDER IN 2021

Carolyn Corda, CMO at ADARA   Data-fuelled marketing has been a go-to in finance for years before it was accepted...

Business1 week ago

NAVIGATING UNCERTAINTY WITH ACCURATE MACHINE LEARNING

Richard Harmon, Managing Director, Financial Services at Cloudera    2020 will undoubtedly prove to be an unforgettable year. The pandemic...

Finance2 weeks ago

TOP TIPS ON HOW TO SECURE A BUSINESS INTERRUPTION LOAN (CBILS)

Effective cashflow management is crucial if your business finds itself in a financial crisis. But what do you do if...

News2 weeks ago

FAST GROWTH REGTECH COMPANY NAPIER CAPTURES TWO INDUSTRY HEAVYWEIGHTS TO STRENGTHEN LEADERSHIP TEAM

Greg Watson and Mariola Marzouk join as Chief Operating Officer and Head of Product   Napier, providers of next-generation anti-money...

Trending