Gaining Consumer Trust in Fintech
America is in a strange situation: record-low unemployment rates and a strong economy, and yet over 70% of the 180 million adults are unable to achieve financial stability — according to new data from U.S. Financial Health Pulse.
Therefore, it is important to create financial products and services aimed at addressing these key consumer issues. Many American adults feel disenfranchised from controlling their financial lives, and so it’s a difficult business challenge to build trust to persuade them otherwise.
Tilman Ehrbeck, Partner at Omidyar Network, provided some choice words of advice to businesses looking to navigate this sector.
If well understood, consumers WILL pay for value.
65% of mass-market-focused financial health firms covered in U.S. Financial Health Pulse’s study were found to charge consumers a little more than the average B2C fintech firm. This is possible by moving from fee transparency to value clarity, meaning consumers are likelier to acknowledge the extra value the service provides in comparison to the charged fees. This is simple (yet effective!) communication of their value proposition.
Advise, not Advertise.
As explained by Ehrbeck, new entrants to B2B relationships seem to reject advertising. This is to avoid potential conflict between advertiser’s interests and the financial health of consumers. Rather, they often look to increase revenue from referral arrangements — which can leap beyond traditional finance and into income discovery and the like. Greater benefits to the consumer, and by extension, your bottom line can ensue.
An aside on Fintech education
As consumer trust in traditional finance withers, it’s important to understand the intricacies of how FinTech can genuinely help those who need its services. Thankfully, CFTE provides this knowledge, with a Fintech Foundation Course. Featuring 4 senior lecturers & 16 industry experts, from CEOs, heads of innovation and global thought leaders. Designed for learners to get a solid foundation in Fintech concepts, and applicable for beginners to professionals. If you’re interested in joining the rank of our international alumni, join our online course today and start learning from experts at your own pace!
