The financial services sector is rapidly evolving, driven by technology and changing customer expectations. While traditional banking methods once dominated, the landscape has shifted towards mobile and online platforms, making financial transactions easier and more accessible. What can an operator in the fintech sector do to adapt and flourish in today’s day and age?
Pivotal Behavioural Factors
1. Technological Advancements
The advent of ATMs, smartphones, and mobile banking apps has revolutionised financial transactions. UPI and cashless payments have further streamlined processes, enabling users to manage their finances effortlessly.
2. Emergence of User-Friendly Platforms
Platforms like Zerodha, Groww, and Upstox have significantly impacted retail investing. With their intuitive interfaces and ease of use, these platforms have attracted a younger generation, shifting investment patterns from traditional savings to market-linked instruments such as mutual funds, REITs, digital gold, and direct equity.
3. Trust in Legacy Brands
Despite technological advancements, legacy brands like SBI and HDFC Bank continue to lead due to trust. SBI’s deposits grew by 11.13% and HDFC’s by 12.08% from FY 2023-24. Public Sector Banks hold 59.7% of the deposit market share in India. This dominance persists because customers, especially in a low per capita income country like India, prfioritize trust over innovation.
However, as incomes rise and financial literacy spreads, private sector banks are gaining ground. From 2010 to 2024, PSBs’ deposit market share declined from 74.2% to 59.7%, while private sector banks surged from 17.7% to 31.4%.
Strategic Imperatives for Financial Sellers
To succeed in this dynamic landscape, financial product sellers must focus on two key pillars: 1. Trust: Building and maintaining trust through transparent communication, community engagement, and reliable performance is essential for capturing and retaining customers.
2. Service Standards:
• Legacy: High-quality service, welcoming branches, and well-trained staff are now hygiene factors. These basics must be in place to compete.
• Contemporary: Seamless digital experiences are crucial. Mobile apps and online platforms must offer intuitive, user-friendly interfaces that meet modern customer expectations.
Actionable Strategies
• Personalised Solutions: Leverage data analytics and AI to offer tailored financial products. • Omni-Channel Engagement: Ensure consistent and integrated service across all platforms. • Simplified Onboarding: Streamline processes to enhance customer experience. • Financial Literacy: Provide educational content to build customer knowledge and trust. • Enhanced Support: Offer robust, multi-channel customer support.
• Loyalty Programs: Design innovative programs to reward and retain customers. • Advanced Security: Implement stringent security measures to protect customer data.
• User-Friendly Apps: Develop feature-rich, intuitive mobile applications.
• Proactive Communication: Engage customers with regular, informative updates. • Social Media: Utilize social media to build brand awareness and engage with customers.
Conclusion
In the fast-evolving financial landscape of India, understanding and addressing customer needs through innovative marketing and superior customer experience is crucial for success. By focusing on personalisation, omni-channel engagement, simplified onboarding, financial education, robust support, rewarding loyalty, enhancing security, developing user-friendly apps, proactive communication, and leveraging social media, financial sellers can exceed customer expectations and drive business growth.
About Two99:
Two99, specializes in empowering the financial sector. They leverage their expertise in marketing and have helped over 50 brands multiply their repeat customers and achieve substantial growth and success. Through data-driven insights and tailored offerings, they drive engagement, build brand loyalty, and maximize the potential of the finance sector. Two99 operates globally in countries like the USA, UK, Ireland and Singapore. Contact today to learn more about how Two99 can help your brand thrive in the economy and beyond.
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Author
Agam Chaudhary is the Founder & CEO of Two99, a leading digital marketing agency specializing in the finance and fintech sectors. With over 17 years of experience, Agam has spearheaded transformative campaigns for top brands, driving growth through innovative strategies, in-depth analytics, and unparalleled market insights. Under his leadership, Two99 has consistently delivered exceptional results, establishing itself as an expert in enhancing brand visibility and customer engagement in the finance industry.