How messaging API providers can help with FinTech

FinTech (financial technology) has revolutionised the financial sector. Customer expectations of their financial services have skyrocketed in the wake of mobile-based apps, or personalised borrowing, investing and buying. Nimble digital start-ups have taken on industry giants in David and Goliath style and risen the bar for all. One thing is for sure. Messaging should be the cornerstone of your customer service strategy. Whether you are a new FinTech provider, or a stalwart who needs to adapt or die.

FinTech disruptions in insurance

The insurance company is one of the most commodity-based sectors of the financial industry. It’s also where an omnichannel API messaging provider could provide the most number of opportunities. Customers could receive reminders about their policy renewal on a channel of their choice. They can then interact with an agent directly to renew in a matter of minutes – an entirely frictionless experience.

For example, a customer, at the time of signing up, opts in to receiving updates on Facebook Messenger. This is their preferred channel. A month before their policy is due to expire, they receive a communication on Messenger letting them know. It also provides them with a new policy that they can either accept or speak more about with an agent. If they wish to renew, they can simply reply yes. This will trigger email confirmation in addition to an alert on Messenger letting them know when their policy will go live. If they wish to amend or cancel the renewal, they can ask questions inside of Messenger and speak to a team member who will have access to a central store of data that empowers contextual conversation.

This in-app resolution provides a service that is frictionless and convenient for the customer’s desired resolution. It also saves the company time and money with live chat (and the channels it supports) offering service that is six times cheaper than a phone call.

Application completions

For new customers, or customers who need to supply additional documents or information to their insurance providers, alerts, reminders and notifications can gently buffer the customer’s journey to application completion, whilst also providing them with a transparent view of where they are in the application process. Push notifications within an app are a great way to facilitate this. Although companies should also consider in-app messaging capability if they are using apps to communicate. This is in case customers have queries that they need answers to in order to complete any desired actions. Making these journeys as easy as possible for customers lowers abandoned application rates dramatically.

Insurance companies can also take advantage of a messaging APIs to speed up claims processes for the customer. They can send triggered messages according to data from their IoT devices and wearable tech, and open more channels to communicate with customers on in order to sell, cross-sell and up-sell. For example, with live chat proving to increase the average conversion and transaction value, this is a must-have channel for your website and app.

Expectations and opportunities in day-to-day banking

Alerts, reminders and notifications (ARN) for account transactions are now standard for banking apps to offer. For example, payment transfer notifications, or alerting customers when they are close to their overdraft limits.

But in order to compete with FinTech start-ups, banks must allow customers to have conversations that mimic the experience of seeing the bank manager too. For example, they should be able to contact the bank via a channel of their choice to reduce or increase their overdraft limit. Or to reply to message about suspicious activity. Or to order a new card. To set up direct debits or standing orders. To change their address. Or to find out about benefits or additional services that their current or savings account provides them with. What’s more, they should be able to complete all of this within a chat. Regardless of whether that is via the app, on a website, on SMS or on a channel like WhatsApp or even Twitter DM.

A good messaging provider will allow banks to set up various scales of authentication. This is so that the user can either reauthenticate their identity each time they contact the bank, each time they use a new device or just as a one off for each channel. This will of course depend on the bank’s policies and the type of service the customer is requiring. But it’s important that your API provider gives you flexibility to select an option that’s right for you and your customers, without any additional dev work on your part.

Banks can also take advantage of centralised data stores to offer more personalised marketing for products and services that would benefit the consumer. This is something which is known to both increase conversion, and improve the customer experience.

Personalised lending with personalised messaging

A messaging API provider can also give your customers more personalised lending options. Conversational commerce can be used to discover more about the customer. More flexible repayment options can be facilitated with transparent alerts, reminders and notifications that make customers feel secure their payments have been received. This will leave them feeling confident about the future, armed with information about their remaining balance and payment schedule.

FinTech inspiration for consumer investment

Investment companies and apps can offer personalised advice which has a bespoke one on one feel, despite being no more sophisticated than a call centre set-up. They can do this by simply allowing users to talk to them across any channel. The messages will come in to one place for your agents, who will be empowered with a centralised store of information. This includes customer message history across all known devices. You could also take advantage of an omnichannel strategy to alert users about changes in their portfolio value, or upcoming opportunities in fields they have shown interest before in investing.

Leveraging FinTech for debt collection

Debt collection is an area in which consumers can easily feel alienated. A centralised store of data gives agents better context to have better conversations to prevent this from happening. It also provides a low-pressure way of communicating for the consumer. They can do it in their own time, without the social pressure of phonecalls or face to face interaction. Consumers can quickly speak with company if there are problems with their repayments. For example, with a change in personal circumstance, they can make alternative arrangements. This is preferable for all instead of debt collection agencies chasing up the clients with escalating phonecalls.

Want to find out more about how messaging can help your organisation? Book a demo.

See also: What to look out for when considering your messaging provider