Voice of the Industry

How fintechs, like Truevo, are using customer insight to challenge the traditional banking model

Monday 23 November 2020 07:24 CET | Editor: Anda Kania | Voice of the industry

Jon Barras and Rob Lemmen of Truevo explain how the fintech industry has successfully developed by considering the customer-driven approach

Over the past two decades, both successful startups and established companies around the world have been evolving their approach to business.

We’ve watched industry after industry adapting to a more customer-focused approach. Businesses that listen to and cater to individuals are thriving, challenging their one-size-fits-all competitors to rethink their approach. This is particularly relevant in the financial industry. People had become used to the traditional banking model that was created decades ago and that is now outdated. Until recently, there wasn’t another option.

Fintech businesses are creating solutions primarily for the underserved. They're evolving the industry into one that considers its customers’ needs, while learning about their customers’ needs through data and conversations. As a result, they’re able to build products that people find useful and valuable, and they're pushing the rest of the industry to do the same, even the traditional banks.

The industry is adapting to the digital age. Fintech businesses are releasing products that capitalise on people’s increasing technology use. For example, when was the last time that you looked at a bank statement? Apps, dashboards and portals give you access to the same information, whenever and wherever you want it. Customers expect more intuitive and human experiences from the businesses that manage their money.

The traditional banking model is not going anywhere any time soon, but with fintech innovation nipping at its heels, we are seeing a shift in the way things have been done. Fintechs are good for banks, and the industry as a whole, because they encourage innovation, using their customers as inspiration.

A welcome industry shift

It only takes a glance at the numbers to see how welcome this shift is. According to the 2019 Global Fintech Adoption Index by Ernst and Young, the fintech adoption rate in consumers worldwide has nearly doubled every two years, since 2015. In 2015, the adoption rate was 16%, rising to 33% in 2017. The most recent survey of more than 27,000 consumers across 27 markets has revealed that 64% had adopted fintech solutions in some way.

Fintech awareness in the global consumer market has also skyrocketed. Ernst & Young reported that of the 27,000 consumers, 96% said that they are aware of a fintech payment and solutions offering.

We’ve seen the way fintech industry excel over the past few years, so fintech companies are certainly more than a trend. The research also indicates that fintech companies will continue to have a major impact on the financial industry as the world navigates the digital age.

How fintech businesses are listening to their customers

When considering the way companies approach their customers, traditional banks and successful fintechs are miles apart.

It may seem counterintuitive, but adopting technology lets businesses connect with their customers on a more personal level. Truevo is prioritising customer insight as it develops and launches the beta phase of its latest product, the Small Business Account. The approach is a relevant example of how fintech businesses are using technology to get in tune with their customers.

It’s the first Truevo product made specifically for small businesses, so the approach to its development prioritises learning from customers and treating them like people instead of users or numbers.

Truevo developed the Small Business Account by imagining the customer journey as a road trip, so we mapped out the ideal route. We know every stop, every turn and every activity planned along the way, but we don’t know if it’s the best route until we’ve seen a customer take the journey.

Alpha phase was launched to a very small group of customers. They started the road trip one at a time. This happened gradually, with enough time for the team to make changes to the journey based on the experience of customers who had travelled the road before them.

The Truevo team collected customer insights at every moment. They watched customers go through the application and set up their card machines over video calls. They set up group chats on messaging apps with business owners and their staff, so the team could learn about their customers’ experience. Business owners message the Truevo team day and night to express their thoughts and concerns regarding the product. With every message and video call, the customers participate in building a product that works for them.

Moving into Beta phase, Truevo has invested in robust feedback and digital analytics tools to keep an eye on their customers as more people join the platform. The goal is to stay close to the customer experience and never stop adapting to suit customers’ needs.

Fintech is the future

Arvind Sankaran, Venture Partner, Jungle Ventures, described the shift of attention to customers: 'We’re witnessing the creative destruction of financial services, rearranging itself around the consumer. Who does this in the most relevant, exciting way, using data and digital, wins!'

Fintech businesses are taking the reins of the financial services industry, using their customers’ needs to guide them. 

Using customer data, fintech businesses can make products that people need. When they supplement that data by listening to their customers, fintech businesses will build products that people want.

About Jon Barras

Jon Barras serves as Truevo’s UK General Manager overseeing the sales and partnership relations of all point of sale systems into the United Kingdom and Ireland. Jon has worked in the payments industry for over 20 years assisting merchants and partners with finding the best card present solutions for their needs. His career began with Cardsave, what is now a Worldpay Group Company, and includes stints at Elavon, American Express, Valitor, and other industry heavyweights. Through this experience, Jon has an in-depth understanding of the market and what it lacks. His mission at Truevo is to offer the kind of product he has always wanted to sell.

About Rob Lemmen

Rob Lemmen is the Chief Commercial Officer of Truevo Payments. He has over 10 years' experience in the Telecoms, Financial Services and Online Payments industries. He previously managed various Sales, Account Management and Professional Service teams at Klarna, PAY.ON, EVO Payments and Credorax.

 

About Truevo

Truevo is a fintech company driven by providing fast, flexible and convenient payment solutions. Truevo empowers businesses to accept Visa and Mastercard payments in over 120 currencies and receive settlements in the currency of their choice. As a licensed Acquirer and PCI Complaint PSP, Truevo offers end-to-end payment solutions for small businesses, enterprises and other payment providers. Core products include card acquiring, a virtual point-of-sale terminal, payment gateway services, in-app payments, a smart point-of-sale terminal, and payouts to Mastercard and Visa cards across the globe. 

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Keywords: Truevo, fintech, SMEs, customer experience, PSP, Jungle Ventures, banking
Categories: Banking & Fintech | Payments General
Countries: World
This article is part of category

Banking & Fintech