Consumer Advocacy in Fintech
Consumer advocacy in Fintech refers to the efforts made to protect and advance the interest of consumers which includes individuals and businesses, in the rapidly evolving Fintech industry.
Given the increasingly digital environment for financial products and services and the potential for digitalization to support greater financial inclusion, the need for effective consumer advocacy in fintech has become more important than ever.
As different fintechs continue to emerge, Consumer advocacy is very important because it helps to ensure that consumers have access to safe, transparent, and fair financial services while being protected from potential risks or scams.
Lately, there has been a rising case of customers of some Fintech platforms, experiencing unfair and deceptive practices, while accessing financial services and products.
Some customers have on countless occasions expressed their concerns over failed transactions, unrefunded money, and several other issues, which are often left unattended by some Fintech companies.
These fintechs operate very poor customer support and are often unresponsive to users’ concerns, inquiries, and issues promptly. This often leads to a lack of trust, criticism, and a negative perception of the company.
What these companies fail to understand is that, without a strong focus on consumer advocacy in a highly competitive industry, they will struggle to maintain a strong competitive edge in th industry.
Therefore, in order to meet customers’ expectations, and implement strong advocacy, Fintech companies need to prioritize their customers, and be proactive in their interactions as well as resolving complaints.
Here are certain strategies on How fintechs can maintain consumer advocacy
1.) Consumer Feedback: Fintechs must ensure to actively listen to consumers feedback. They can create channels for users to report issues, provide suggestions, and express concerns about any of the services.
2.) Regular Audits And Assessments: Fintech companies should conduct regular internal audits and assessments of their operations and practices. This includes identifying areas where improvement needs to be done and taking proactive measures to address the issues.
3.) Crisis Management: Fintechs must develop a crisis management plan to address any unforeseen issues or crises promptly. They should ensure to communicate transparently and effectively with their customers in case of any challenges.
4.) Ethical Use of Technology: Fintechs should implement ethical practices in the use of algorithms. They must ensure that their algorithms are unbiased, and transparent, especially in areas like lending and credit scoring.
5.) User Education: Fintechs must ensure to invest in consumer education initiatives, by creating resources, guides, and FAQs to help them understand how to use their services safely and efficiently.
It is worth noting that Consumer advocacy is a continual process. Therefore, Fintechs must continually evaluate and refine their policies, practices, and technology to align with the evolving needs and expectations of their users.
Doing this gives customers the impression that these companies have their best interests at heart. This perception is developed over time through a variety of interactions and touchpoints.
Notably, maintaining healthy consumer advocacy initiatives should be a core value of any Fintech company. By prioritizing transparency and ethical practices in their operations, they can build trust and loyalty of consumers, which can contribute to a positive and sustainable consumer experience in the fintech industry.
Customers who receive a consistently strong level of service, tend to be much more loyal to that company.
