Fintech is a word you’ll continuously hear as months and years pass. But are you really surprised? The finance industry must catch up to technology to be compatible in this century. And On the same hand, the traditional markets must use technology to further growth and digital transformation.
We always knew our world would speed up once technology became the driving force of our daily lives. As we all know, tech has accelerated in the last three years alone. So how are non-financial companies adopting Fintech into their products and services? How does Fintech affect consumers, and how are non-Fintech companies adjusting to the changes? In this article, we’ll explore these questions and more.
Fintech Has No Limits
Naturally, technology began to change how we operate in our financial lives through banking, lending, and spending, all of which are now under a digital transformation, or a revolution, if you will. However, we’re finding more companies and businesses unrelated to the finance industry taking on Fintech.
If you think about it, it just makes sense. Every business that handles currency in some form, be it physical or digital has the option to use Fintech to advance and streamline their transactions, customer service and increase brand loyalty, all of which benefit a business’s revenue growth and ROI.
Benefits of Fintech for Non-Financial Companies
Before implementing any technology to your product offering companies must understand why and whom they are targeting. What problems would they like to solve and how? What’s our objective or goal? What type of Fintech is right for our goal, and how can we scale our Fintech for the future? All of these questions will help companies figure out why Fintech is important to them and how it can benefit them. Let’s review some of the reasons businesses choose Fintech.
Achieve More in One Place
The point of technology is to use it to simplify processes that were once tedious to conduct manually. However, as innovative solutions evolved and consumers began connecting with brands differently, it soon became sought after to create omnichannel systems.
Industries such as online Retail and eCommerce storefronts were using omnichannel to streamline customer support, fulfillment, and supply chain management from website to mobile.
Therefore, it’s no surprise that other non-financially driven companies are following suit after seeing the positive impact Fintech omnichannel experiences can have on various aspects, such as customer retention and loyalty, as well as increased profits and company growth.
With the increased use of apps, social media, and mobile, non-traditional companies are utilizing omnichannel experiences to bring all these channels into one cohesive system, leading to a greater competitive edge.
Keep Up and Out-Pace Your Competitors
The more companies enter a market, the greater the competition. Therefore, staying competitive is an absolute must for companies wanting to stay around for the next genius technology (like ChatGPT) that will shake every industry to the core.
Not to mention that demand drives these inevitable chances as” more than 40% of retailers are using some form of electronic payment methods,” notes Retail Insider. Therefore, it’s imperative that markets that can adopt Fintech do. New innovations in payment options aid in attracting and retaining customers.
Fintech can make shopping more simplified, efficient, and available to a broader audience of people. As the world becomes more globalized, we’ll shift how to use technology to bank, pay and shop in any industry.
Drive Brand Growth at Scale
Scaling your technology solutions is a necessary aspect of any digital ecosystem. However, technology must be seen as an investment and, at times, can be costly. Training employees on the new system, ensuring that the system is compliant with government laws and regulations, and implementation of third-party add-ons all must be considered when getting started.
A scalable financial service can positively impact your growth. It allows you to add more revenue streams to your business and make other integrations or changes when needed.
Remember, as we stated before, customers like to do as much as possible in one place. So if they can complete a translation with you instead of choosing your competitor, you will find that they will be more satisfied with your brand, increasing brand loyalty.
Retaining customers is a big subject for many companies competing in growing markets and industries. The subtopic is how I can make the experience better for the customer. What experiences would our customers like to see or enjoy? What would make the process user-friendly and covenant?
Consumers love a great experience, so creating the best experience for your customers throughout the buyer’s journey and every time they interact with your brand or products will keep them returning, increasing profits and brand awareness.
The Benefit for Consumers
So how does all this help the consumer? Good question. To start, it makes paying for services quick and easily. With one swipe or press of a button, you can pay for a multitude of transitions like groceries, bill pay, and subscription services.
Trends show that consumers would rather shop, purchase and pay all in one place. And we can see that trend with Gen Z using, on average, 4.6 Fintech mobile apps and 78% of Americans preferring to bank online versus going to a physical location. With those numbers, it’s clear that Fintech will soon be at the center of our financial transactions.
Greater customer satisfaction can also be achieved through improved customer support. Having a well-functioning product where most, if not all, the customers’ needs can be met will have a positive impact. The overall benefit for customers is the ease with which people can incorporate it into their daily financial needs.
And with increased use and demand will come the need for greater protections for consumers and their personal financial and banking information. With secure Fintech solutions, consumers will be more trusting in doing business and can feel confident that their data and information are safe.
Companies Utilizing Fintech
Many non-financial companies are making Fintech work for them, increasing profits and customer growth.
Starbucks has been a pioneer in mobile payments and has taken Fintech to a new level, becoming a benchmark for other companies. Their app allows customers to order and pay for their coffee using mobile phones, saving them time and enhancing convenience.
Starbucks has also partnered with Fintech companies to offer loyalty rewards programs to its customers, allowing them to earn points for purchases made using their Starbucks cards. These points can be redeemed for free drinks and other rewards, enhancing customer loyalty and engagement.
Through its use of Fintech, Starbucks has enhanced customer experiences and increased customer loyalty, demonstrating the potential for non-Fintech companies to leverage Fintech solutions to create value for customers.
Other Industry Players
Additional companies are also making their moves; for example, Walmart partnered with Green Dot to launch the Walmart MoneyCard, a prepaid debit card that can be used for shopping, bill payments, and money transfers. Amazon partnered with JPMorgan Chase to offer a co-branded credit card, the Amazon Prime Rewards Visa Card, with cashback rewards for Amazon purchases.
Telecommunication companies in the U.S., such as AT&T, Verizon, and T-Mobile, have launched Fintech solutions that enable customers to make payments, transfer money, and access financial services using their mobile phones.
These solutions include mobile wallets, peer-to-peer payments, and access to credit, among others, providing customers with greater convenience and security. Integrating Fintech into its operations highlights the growing importance of digital transformation in the telecommunications industry.
Everyone Will Soon Be in the Business of Fintech
The increasing adoption of Fintech solutions by non-Fintech companies highlights the growing importance of cross-industry collaboration in driving innovation and creating value for customers.
By leveraging Fintech solutions, non-Fintech companies can enhance customer experiences, promote growth and differentiate themselves from competitors. The exciting possibilities of Fintech and potential to transform various industries are just beginning to be realized. It will be interesting to see how Fintech continues to shape the future of business.
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