Love is Blind, But is Fintech?

Love is Blind swallowed our evenings and free time again with its most recent series on Netflix. The couples brought passion, confidence, uniqueness and much more during their screen time, and we wasted no time in spotting some comparisons to our creative world of fintech. But how? Well, much like before you’ll have to read on to see how each of the contestants reminded us of fintech players we’ve encountered in our numerous years of experience as an industry leader.

“I was left with a big question mark” – Marshall

Oh, Marshall – how our hearts went out to you! His hopeful nature over what could be achieved reminded us heavily of some of our blooming merchants who approach Unlimint. Much like some of the earlier startups and even the traditional institutions we’ve seen, Marshall seemed to walk around with an air of innocence which he makes up for with hopefulness and zealousness.

We all remember towards the end of the season where Jackelina’s antics were catching up with her, and it left Marshall looking lost. It was the clearest depiction of how it feels between traditional financial institutions and for us as a fintech (and no we are most definitely not saying we are Jackelina!). The constant confusion and lack of clarity that Marshall felt, was because he was always two steps behind what was happening in his surrounds, and that is what we would consider as fiat institutions, like banks. Traditional financial institutions have struggled to not only maintain pace with the digitalisation of the world and banking, but also understand the needs of consumers because of their lack of speed and knowledge. And sadly, it was the inability to adjust which saw the abrupt departure of Marshall and his unrequited love before the season finale, and what a louder critique than that of recent events we’ve been seeing? Since 2015, we have been seeing the closure of brick-and-mortar bank branches, particularly across the United Kingdom due to transforming needs of consumers who are turning to digitally driven alternatives. There have been a whopping 5,579 brick-and-mortar bank closures as customers have been turning to digital alternatives and online banking as their main choice for managing funds.

Interestingly, it’s Marshall’s chivalrous, or more ‘traditional’, nature which leaves him behind, whilst Jackelina embodies a take on ‘the modern woman’ – filled with independence and turning away from traditional ways of building relationships. And what did that cause? Unfiltered disruption. Similarly, fintech’s have been spreading technologies and creating disruption within financial services, creating lucrative opportunities for businesses at a global scale. Whilst Jackelina wasn’t the best at being a people’s person, fintech’s most certainly are! Listening to the pleas of both businesses and consumers, fintech’s have used technological innovations to plug gaps in product offerings and improve upon financial experiences. From better services with cheaper prices to more inclusive customer experiences, fintech’s have been transforming operations to create more attractive and inclusive products that can be seamlessly integrated into business models. The proof is seen in Capgemini’s World Fintech Report, stating that 90% of fintech companies place enhanced customer experience as a key to their competitive advantage. And that’s why the arrival of challenger banks and fintechs has been so disruptive, as they appeal to consumers in ways that traditional institutions have been unable to – with lower fees, user-friendly features, personalised experiences, more transparency, easy to use digital interfaces and much more.

“Tell me exactly what you need from me, so I’m not guessing through the night” – Marshall

The importance of data in modern day banking is fundamental for numerous areas of business functionality, including:

• Customer satisfaction and business retention
• Protecting customers at risk of fraud
• Enhance operational efficiency
• Reducing fraudulent activity against business
• Create new products based on consumer behaviours
• Speeding up the verification process for new customers
• Making informed predictions for future trends in customer behaviour.

Our digital world has never been so competitive, with numerous players and global interconnectivity giving consumers endless choice. And with the growing concerns around security and increasing demands from customers, guess work is no longer something that will satiate consumers. For traditional institutions, this can be complex because they lack the infrastructure to provide them with thorough data, and instead have to collate data from third-party sources to grapple at the chance of meeting their growing customer expectations.

Digital innovators and fintech providers have greater access to the data available from customers, which gives one of the most poignant advantages – data-led personalisation. With increasing speed of digitalisation, growing knowledge of consumers and savvy competition, personalisation is not to be overlooked. And given the complex challenges that banks are facing around the topic of changing customer behaviours, it is data that will help organisations to scale their products at the right speed to meet those needs. Much like Marshall’s cry for clarity and knowledge, we’ve seen banks and nonbanks turning to fintech’s to benefit from the learnings of artificial intelligence and machine learning in efforts to analyse the vast amounts of data which were previously overlooked. The proof is clear in that the global spending on AI in banking alone is expected to reach $11.1 billion by 2027. Additionally, in the fintech sphere, we see the use of real-time data being made accessible which mitigates risks in real-time to reduce the chances of financial losses and creates faster resolutions to consumer needs.  84% of consumers believe that a customer experience is equally important as the products and services offered by an organisation.

*To Marshall* “You need a lot of security…” – Jackelina

The benefits of data are imperative to growing with customer needs, but there is also another priceless value: security. Fraud costs the financial industry $42 billion annually, and the use of advanced analytics can reduce fraud losses by up to 60%. The rising conversations around security and fraud are a result of the rapid digitalisation in our financial spheres. We see numerous unregulated currencies and providers who are more susceptible to attacks, and also with rapid increase in digital banking and purchases as we progress towards a cashless society, there is greater room for cyberattacks. Consequently, banks and fintechs are constantly striving to elevate their security in line with rapidly evolving regulations and criminal behaviours. Gartner predicts that 80% of organisations will fail to meet security, privacy, usability and scale requirements by the end of 2023, unless senior leaders tend to the needs of their business identity and access management needs. In essence, where legacy tools still lag and deploy new alternatives at a slower rate, fraudulent behaviours are becoming growingly sophisticated and expensive for businesses and banks. So, in a rare case – Jackelina was correct!

But cybercriminals take each opportunity they can, which pushes the need for further advancements in security. This is where data can further reduce vulnerability, as attacks can be monitored in real time, and data can be used as lessons learnt to understand the motive and processes of attackers.  Innovations to enhance security are continually being developed, and we see them in solutions such as identity authentication, two factor authentication, artificial intelligence, machine learning and more.

The way in which consumers can be reassured about the safety of their information lies in transparency. Much like the painful moment where Jackelina was SUPER transparent about her love triangle with Josh, to Marshall. Users want to know what brands can offer them, and they need to feel a sense of security when it comes to their funds and data. Around 18% of people will abandon a shopping cart because they don’t trust a website with their payment details. Whether it’s a bank storing their funds, or a goods and services product which consumers are paying for, users must feel a sense of security. A driving force around both consumers and businesses turning to fintechs is also for the transparency which gives users the assurances that their data is being managed correctly; thus maintaining trust and loyalty. In the past, we saw non-transparent practices causing a stir for merchants and consumers as banks surprised users with hidden fees and a lack of clear information about their services. Scorned users now seek products and solutions which move away from legacy issues and offer clarity from end-to-end. Fintech’s are notorious for offering the assurance of security and transparency, as their fundamentals are considerations which have been learnt from traditional practices. Technologies such as blockchain, AI and open banking are having a seismic impact on payment processes as they improve overall visibility and encourage collaboration with industry players who strive to enhance their processes. In essence, growing uses of technology are mitigating the frustrations that our sweet Marshall felt, nobody is left guessing, and fintech solutions are empowering businesses and consumers to make informed decisions, with the assurances of a sense of security.

Ignorance is not Bliss

There’s a massive 50/50 split when it comes to Bliss – but whether you love her or hate her, there was a moment where we all held our breath as she confronted her concerns about being a second option to partner, Zack. If we take the same emotion and apply it to the world of financial services, whether through fintech or banks, the consistent message is customers never want to feel like second best. According to EY’s Customer Experience: Innovate Like a FinTech report, 36% of customers said they would be willing to provide more personal information if it meant that banks would improve customer experience and be able to better prepare for their needs.

With so much rife competition in the consumer world, businesses are having to create new, unique experiences that make their customers feel valued, chosen and prioritised at all times. How? Using data and insights have been enabling businesses to tailor their product offering based on shopper trends, creating simplified checkout processes for ease of convenience with relevant payment methods, and mitigate risks to assure customers. Banks have had to amplify their digital experiences as customers seek better online and mobile service, with 72% of customers expecting immediate service. With 84% of customers using online banking and 72% using mobile apps as their primary method of reaching banks – traditional institutions have no choice but to step up their innovation game to avoid playing the role of Bliss. The preferential habit to use online services has stemmed from consumer need for immediate gratification – users want answers immediately, convenience from start-to-finish, rapid resolutions and so much more. It only takes one less than satisfactory experience to have a disgruntled customer who detaches from a brand.

But there is another side of the consumer population which is often an oversight, particularly in relation to traditional banks – the unbanked and underbanked population. Moving in opposite to ignorance, fintech’s come to the rescue again with accessible solutions which closes gap for the global 1.7 billion adults without an account. Traditional financial services have been notorious for their rigorous requirements, making them inaccessible for large segments of population. This approach has been detrimental, particularly for banks in emerging markets like India, Latin America and parts of Sub-Saharan Africa which are becoming hubs for fintechs and ecommerce businesses. In efforts to, shall we say, *not* be Bliss – fintech’s are providing the unbanked and underbanked a safe way to store savings, make payments and transfer funds through their financial services. The impact of fintech on financial inclusion has been monumental with 1.2 billion adults obtaining an account since 2011, which includes a staggering 515 million since 2014. By reaching out to areas of the population who have be underserved by financial institutions, fintech products have been providing underbanked and unbanked individuals with:

• Opportunities to launch businesses, both online and instore
• Access to emergency funds from friends and family
• Secure accounts to place funds
• Better financial education.

Entering new regions

None of us are blind when it comes to the potential of business opportunity in entering emerging and international markets. In Love is Blind we watched the journey of Kwame and Chelsea, which resonated with us because of Kwame’s concerns over relocating to Seattle. His fears over the idea of relocating, and not knowing the people, locals and area felt like a clear representation of how it feels for businesses to enter new markets with no knowledge or preparation. However, we’ve seen numerous merchants turning to payment service providers and fintechs for expertise and quick access.

Speaking from experience, we have over a decade of experience of our experts being at ground level across global regions. Through this, merchants are able to partner with a fintech that has credibility with the local population and expand their reach by leveraging our financial infrastructure. Unlike Kwame, businesses are able to enter new markets prepared to hit the ground running and launch with speed because of the knowledge and skills behind them. Through accessing new markets with a pre-existing solution, organisations can offer local payment methods for customers’ ease of access and appeal to a market without having to spend the time connecting with numerous third-parties and learning about each area of expansion.

The perfect match

Finding the right fintech to suit any business is like being on Love is Blind – by getting to know each other you can better understand the needs and capabilities of both parties, and how the fintech can uplift and improve the organisation with its skills and experience. The depiction? It could only be Tiffany and Brett. Season four’s perfect match seemed to fit into place seamlessly, with thorough communication about what each other would need (aside from when she fell asleep while he confessed his love to her), they were able to achieve a level of stability and growth. We also saw how they planned further into the future, creating longer term goals together as a plan for a successful future. This is perfect symbolism of what is achievable with the right partnership with a fintech. Speaking from experience, we design our API platform to be configurable not only to a business model in its current form, but stackable for the future so that our product can grow in tandem with a business plan. Whether it’s to expand into new markets internationally, offer alternative payment methods or provide better customer experience – the configurable API solution facilitates an experience that is the right fit for any brand.

Their success is clear as we see them step up for each other in moments of hardship. As Tiffany exposed her vulnerability and weak spots of what she wanted to be able to have in the future, Brett’s ability to comfort her and help her see that they could achieve it together was not only wholesome, but also the depiction of a perfect relationship between any business and a payment service provider. We provide the service, support, knowledge, and mental reassurance that you can relax while we do the heavy work in the background. Much like having a committed relationship, as a fintech we are committed to bringing innovation to the front of growth opportunities in the world of business. We aspire to have the same dynamic with our clients, bringing them a sense of happiness, stability and vision for the future!

Love may be blind, but the future of payments and financial solutions isn’t. Fintech providers like Unlimint are here offering a global payments infrastructure that goes beyond borders to help any business win. With experts on the ground with a localised knowledge, we help businesses expand to new heights with the ability to accept and make payments in a myriad of currencies, with no intermediaries. Eager to find out more about how you can maximise your revenue, whilst minimising costs with a financial solution designed to growth with your business? Contact us today and begin your journey to the payments of tomorrow.