FinTech firms are continuously innovating and developing new services to better meet market demands and improve branding. They are particularly focused on enhancing mobile features and user experiences to appeal to the growing Generation Z market segment.
It has been deduced from data collected that about 62% of FinTech firms are largely centered on attracting more consumers from Generation Z. This approach is favored by about 95% of Credit Unions. These findings are based on a survey conducted from October 16 to November 10, 2023, in which 101 executives from various FinTech companies participated.
The survey also revealed that digital transformation remains the focus for many of these companies as they strive to enhance their operations, customer experience, and compete effectively in the industry. The rapid pace of innovation in the financial sector has created a burning need for regulatory compliance which was also stressed by the respondents.
Many of the executives expressed plans for significant investments in AI and machine learning technology. This is due to its potential to revolutionize the financial service industry through improved predictive capabilities and routine task automation. Cybersecurity is also a top priority, given the rise in cyber threats in this digital age.
The study also uncovered a need for improved collaboration between FinTech and traditional banking institutions.
Targeting Gen Z with mobile advancements in FinTech
Executives believe that strategic alliances would help harness each other’s strengths and promote financial inclusivity.
A sizable portion of FinTech companies are directing their growth strategies towards improving mobile capabilities and user experiences. Approximately 70% viewed this as central to their expansion plans. They also emphasize the importance of securing data and privacy, with nearly half of the companies incorporating enhanced security measures into their businesses.
However, despite the technological advancements, they face challenges like regulatory compliance, system integration, complex internal decision-making, and resource inadequacy. High employee turnover was also mentioned as a relation to the company culture. However, budgeting was rarely highlighted as a primary concern.
These firms aim to continually improve their innovation methods over the next three to six years. They acknowledge the significance of agility in decision-making to keep up with swift tech advancements. They strive for success by not just adapting to change, but leveraging it strategically. The ultimate goal is to exceed customer expectations and secure a competitive edge in the market.
