You Can’t Do Without Humans in Finance, So Hybrid Fintech
My several long conversations with my clients, usually mid-tier banks or lending companies, have been about why should technology takeover a sector that handles some of the most crucial information? All these years it has been managed so well, then why give it away to a leakage prone mechanism?
Indeed the finance industry has stood sturdy and operated with grace, even during the most cyclonic events across the world. However, times have changed and we are looking at the renaissance of our age, where direct-to-customer (D2C) schemes have made the customer more independent or self-serving. They are now able to look for wealth management options themselves, however all they need is the right advice, correct information available right on their fingertips as soon as they think of it. Now, that is not easy for a human to do you need some robo-mechanism for that.
I don’t want to sound the tech-fanatic here. I believe and often advocate the need of human expertise in the finance world, majorly banking. Well, when you need some really good investment advice, you also need a professional to convince you that you are on the right path; a robo-advisor won’t do that.
What is a hybrid solution?
Let me begin with the omnichannel approach, well the retail sector has benefitted considerable from this fusion between the physical and the digital world. It is something similar that banks need a fusion between technology and human expertise:
- Technology to analyze and interpret the massive data for understanding user pain-points for devising the best customized solution
- Human for being the first point of contact for a personal touch to every conversation and the convincing appeal for stronger customer relationship
Let’s consider the case of insurance and lending companies:
The prospect or client is looking for the best options; he already has a lot of service-providers approaching him and you want to stand out with your solution. First things you will need –
- a proper mapping of the customer’s spending behavior
- their future plans
- means of income and their personal lifestyle
Now, to get such data and prepare a convincing pitch you need technology, hence fintech IT solutions, but for a complete customer-centric approach the expertise of a persuasive human tone and personal touch is indispensable, so you can’t do away with your sales person.
A hybrid fintech solution will keep away the fear in banks of being grabbed and pulled by technology. Also it lets your customers feel assured that they are still dealing with humans and not machines.
Don’t always go for brands?
Most banking and finance companies are under the impression that entrusting their fintech makeover in the hands of brands is a safer option. Well, I often tell my clients that your investment and the ROI must be parallel at some point of time. The fintech world is yet to tap many levels of innovations and the way some mid-tier fintech firms have displayed their expertise they are not far behind in the race, rather some of them have shown exemplary advancements.
And if you are a mid-tier company then working with a smaller but accountable brand will save your money and give you a more personalized solution along with other benefits, because for a smaller brand every customer and their reviews matter.
A leading lending company of US, now a good customer of mine was doubtful about automation and letting a tech company integrate their mechanism into their sturdy traditional model and now he often consults me about what new Fintech innovation he can bring in, so that his sales and marketing team can harness the market more appropriately.