FinTech Industry Needs More Consumer Educational Efforts
Article orginally posted on Fintechist.com
There is no denying the FinTech sector is buzzing with excitement these days. Disrupting the financial sector as we all know it is something a lot of passionate people are dedicating all of their time to, and many great projects have been announced so far. While that is all fine and dandy, a lot of consumers are still wondering what this FinTech buzz is all about, and why they should care in the first place.
A Need For FinTech Educational Efforts
Coming up with revolutionary payment methods is one thing, but getting the everyday consumer to care about these innovations is something else entirely. Just ten years ago, no one thought credit cards would ever become widely used, yet now they are the most common form of payment next to cash.
Any new service, platform, or tool developed in the FinTech ecosystem will not only need to be advertised but also explained to consumers. If you were to ask the average person on the street, they would most likely answer how they are not looking for alternative ways to do their finances. In fact, most of them will even say the current system is working “just fine”.
Popular new payment solutions such as Apple Pay have gained a lot of initial traction, yet the number of users is already on the decline once again. Most people see FinTech innovation as a gimmick, which gets them excited at first, and then they lose interest. Not because these payment solutions aren’t working as they should, but it’s just not always as useful or convenient as the everyday consumer wants it to be.
Part of the reason FinTech could be facing a lot of skepticism from everyday consumers is due to its lack of educational efforts. Rather than targeting a tech-savvy crowd, FinTech innovations should be advertised as something anyone, and everyone can benefit from. To do so, people need to be informed as to why these innovations are so important.
For everyday consumers to understand the importance of just about anything, they will need to be led by the hand. Doing research during spare time is not a trait to be found in most citizens today, as they will only learn through traditional channels. Whether that is education, media, or word of mouth, FinTech needs to get noticed by a much larger crowd sooner rather than later.
Explaining The FinTech Phenomenon
Any trend or innovation that gains some form of mainstream traction will automatically be labeled as “hype” or “flash in the pan”. FinTech is no different in that regard, as many people see this sector as a “gimmick”, which will fade away in the next year or so. However, they couldn’t be further from the truth in thinking so, as disruption is taking place as we speak.
The main question is: how can we reach a larger audience? Holding conferences and events is a great way to raise FinTech awareness, yet those are all targeting tech-savvy people. While it is important to draw in more people with a technological background — and even potential investors- FinTech will stand or fall depending on how many people are using these innovations.
To reach this global audience of potential users, informative FinTech portals will need to be created. Unlike other types of innovation, there is no dedicated “how-to” guide to FinTech, yet that doesn’t mean explanatory guides can’t be valuable. Once the everyday consumer understands the concept of FinTech, there will be an even bigger influx of enthusiasts, which will elevate the sector to new heights.
How would you try to raise awareness about FinTech, and why? Let us know in the comments below!
