As Featured on Fortune.com
Financial technology may still be in its early stages, but 2016 was nonetheless a whirlwind year for the FinTech world. And it’s about to get even better. According to the annual FinTech Report, cumulative investment globally will exceed $150 billion in 2017.
Here’s what experts at the Commercial Equipment Marketplace Council (CEMC) conference say FinTech businesses should know.
1. Trust will continue to become a consumer difference maker
Although factors such as price play an important role in deciding whether someone should become a customer, the key aim for any business should be to establish trust.
It’s extremely important that FinTech companies ensure sensitive client information stays secure. They should also use their social media channels to communicate concerns on data breaches and other business slipups.
A great example of this is Max Levchin, the founder of PayPal and most recently Affirm. Affirm as an organization is built upon trust in the millennial world which shows their strong success including raising an additional round of funding.
Affirm is focused around making banking more transparent which is an important factor that millennials consider when picking a bank for them. If you look at their website, they mention things like making banking more for you, mentioning they are on “your side” and being the modern bank.
2. Buying behavior is changing
One of the largest trends we are seeing in FinTech is that more traditional experiences will move from offline to online.
This doesn’t just stop at consumer-focused projects like commercial banking, but even businesses like Currency are taking this change in consumer behavior and using it to their advantage with facilitating equipment leasing through their online portal.