Banks and financial institutions have been working to increase customer satisfaction and retention on their mobile and online platforms.
They want to remove the complexity of everyday transactions by providing a wide variety of services. For better or for worse, the financial industry has been met by competition with mobile payment apps like Cash App, PayPal, and Venmo, with more and more apps entering the fray. Banks are in fear of becoming obsolete.
One solution to this problem is to innovate fintech. Fintech, also known as financial technology, is a term to describe how tech continues to automate the delivery and demand for financial services. While it answers to the demands of many customers, it also provides an opportunity for financial institutions to customise personalised banking experiences. Another solution to this problem is to provide charitable giving.
Online Giving and Banking Works Together
Online giving is growing 9% each year over offline giving. Finding a social cause to support and participating in philanthropy are two are of the biggest priorities for customers. They also spend a huge amount of their time with online banking. It’s been months, even years since most Millennials have stepped into a bank.
While some of them aren’t good at checking their bank account, most of them monitor their financial activity on their smartphone. Others love to receive money via the Cash App, PayPal, or Venmo. They can let you know the exact time they last used it. But if you ask them the last time they spoke to a teller, they’ll give you a confused look.
The financial technology innovation is focused on complimentary interest, so they flock to financial institutions that improve their customers’ online experiences. This helps them get more customers and retain them. Banks and credit unions offer a wide variety of tools that make online banking easy and painless. Financial institutions now include online charitable giving solutions to their online solutions, providing a seamless experience.
Here are some ways on how online giving technological advancements are making a moving to fintech.
Enhances Customers’ Banking Experience
Research has proven that customers demand highly customised experiences, even with online and mobile services. They want the products and services that satisfy their desires and needs. But these products and services should be easy and efficient. The same goes for online banking services.
Good Coin is an example of an online platform that improves the banking experience by allowing them to support their favourite charities and nonprofits within their online banking environment. It also provides these online donors transparency over when and where their recurring donations are going. Financial institutions are answering the call to customers who want personalised experiences with the opportunity to give back.
Banks and credit unions who are want to utilise Fintech should provide customers with online giving solutions that are incorporated into the online banking experience and are customised to their customers’ preferences.
Fuels Customer Engagement and Loyalty
Psychological pricing is known to work on customers. They may shy away from a product that costs $40.00 but may consider buying it if it’s $39.99. They’re also attracted to the “buy one, get one” pricing concept. TOMS is a great example of this concept. The charitable brand gives a pair of shoes to a child in need with each purchase.
Good Coin is an example of an online platform that improves the banking experience by allowing them to support their favourite charities and nonprofits within their online banking environment
The brand has expanded to over 70 countries. This company’s massive growth has proven that a socially progressive campaign works. Many different brands are buying into the “give back” movement by partnering with charities and nonprofits. This makes customers feel good every time they make a purchase. They feel like they’re doing something good for the planet and for the greater good.
Customers love brands who make a positive impact on the world. Thirty-seven percent of customers are loyal to brands that are transparent about the charities and nonprofits they support, according to data from Accenture. Customers are more willing to purchase from a brand that makes them feel good about the purchase they’re about to make. That giving aspect makes them feel like they’re making a difference in the world.
When customers feel good, they’re more likely to purchase from that brand again in the future. The same goes for financial institutions. By incorporating “feel-good” solutions into the online banking experience, customers will remain loyal and feel a sort of affinity towards that bank.
Millennials Love Using Fintech and Giving Back
Millennials are known as the generation that’s demanding change in the world. Brands have been paying attention to this generation since they’re the ones making an impact in the world. They’re currently fintech’s largest target customers. Legacy financial institutions are having a hard time targeting Millennials. They’re looking for more accessibility, automation, and technology from their banks and financial institutions.
By incorporating “feel-good” solutions into the online banking experience, customers will remain loyal and feel a sort of affinity towards that bank
Banks are hoping to attract this generation, especially when it comes to online giving. Millennials prioritize social responsibility and corporate responsibility when it comes to finding brands and companies that they support. Ninety-three of Millennials made a charitable donation in 2015.
Banks need to innovate to compete with fintech startups while answering to customers’ needs. This gives them the opportunity to grow as their customers make a change in the world. Combining modern-day solutions with philanthropy is what increases customer engagement and loyalty.