Fintech companies have been disrupting the status quo and driving growth in so many industries. But with so much change and innovation comes a big load of challenges.
FinTech is a relatively fresh industry that’s quickly changing. And just like with any developing sector, the roads can get a little bumpy. What are the major challenges facing financial technology in 2020, and can they be turned into valuable opportunities instead?
Building Trust and Credibility
With not a vast majority being an early adopter, financial technology companies have to do a double work: they not only have to convince consumers to trust them, but they also have to argue that what they have to offer has become a necessity in 2020. And because most of potential leads are skeptical of new innovations and technology, companies are now focusing their efforts to build trust and exude credibility on three C’s:
- Credibility
- Collaboration
- Customer Experience
This is how they can turn this big challenge into a promising opportunity. By focusing on the three C’s FinTech companies are reassuring their customers that their relationship is not just transactional, but one that is transparent and built on trust. Moreover, the more transparent and honest a company is, the more likely customers will find it comforting. This is where smart collaboration comes in as well: by aligning with larger organisations, governments and creating social proof a human touch is automatically the new stamp of the company.
Financial Technology and the Customer Experience
Building up from the previous idea, it’s important to remember the human element in all the process. It can get a little too systematic, especially if the customer service is a chatbot. Talking to another human shatters the barriers that can prevent fintech companies from building trust and communicating with customers accordingly.
In that case, communicating clearly and humanly without eliminating crucial information is key, along with being transparent yet not intimidating goes a long way in meeting customer’s needs.
Data Breaching
And especially eliminating them… Fintech companies have become the prime targets for cybercrime due to the sensitive data they carry. Actually, financial service firms were hit 300 times more than other business and each attack is costing financial service firms millions in finances and resources. Any breach has the potential of exposing sensitive data like stakeholders home addresses, names, email addresses, and social security numbers if not financial credentials.
Be Prepared!
Both technological and legal revolutions have radically changed the world of finance. Fintechs are creating a new financial industry, deploying technology to improve financial activities.
This being said, the Fintech Major at ESiLV trains future engineers in all the innovative technologies essential to evolve and reinvent the finance profession in these companies:
- Machine Learning
- Web services
- Blockchain, and other focus areas
Throughout their five-year course, all engineering students take part in yearly projects that put their theoretical skills into practice to further enhance their behavioural skills. In the fourth and fifth year, they’ll get to work on an industrial innovation project in partnership with companies, associations or research labs. Some of them create fintech projects such as Bitcoin value analysis and algorithm prediction based on the analysis of cryptocurrencies…
Discover the portfolio of 4th and 5th-year masters students majoring in FinTech at ESiLV graduate school of engineering.