Top 10 Fintech Company Business Models Set To Take Over The Fintech Industry

Did you know that as of 2022, the fintech industry is worth $179 billion with approximately 30,000 financial technology startups? Those are big numbers for an industry as young as the fintech industry. Moreover, fintech companies are capitalizing on the numerous services traditional banks provide, such as account opening and insurance underwriting, and turning the old business models in financial companies on their heads.

The fintech sector is receiving a tonne of venture capital funding, and “challenger” banks are threatening to eliminate banking behemoths more quickly than Netflix eliminated Blockbuster from the game. So let’s examine ten cutting-edge fintech company concepts paving the way for disruption and growth.

Progress In P2P lending

Peer-to-peer (P2P) lending is the practice of a person borrowing money from another person. Like this, peer-to-business (P2B) lending occurs when a company borrows money from a single or group of people. By directing their funds to pre-approved and carefully screened borrowers, these lending models make it simpler for investors to obtain higher returns than those provided by debt markets. Companies in the fintech industry build platforms to connect borrowers and lenders and typically deduct a charge from the borrower’s repayment.

The Magic Of Digital wallets

We can compare a no-frills bank account and a payment gateway to digital wallets. This business model allows customers to pre-load a set amount of virtual currency into their wallets, which they can then use to make online or offline purchases from businesses that accept digital wallets.

Providing users with the convenience of making payments for a small fee that is typically charged to businesses is the basic tenet of a digital wallet business model. These can be in the form of a merchant discount rate (MDR) and through the float that they would make on the money that is sitting unpaid in customer/business accounts. Businesses that provide their customers tangible goods or services in person are the typical end users of wallets, for example, Venmo, Square Cash, Google Pay, etc.

Digital Banking Revolution

Imagine your local bank closing its physical location and moving entirely online. There would be no bank tellers, no mail, and no real offices. Instead, challenger banks provide no-frills personal and commercial bank accounts through a fully developed digital infrastructure. The business strategy used here is much the same as that of a bank with physical branches, except that consumers can significantly benefit from lower rates thanks to the significant labor and real estate cost savings.

Safety For Everyone, Everywhere With Digital Insurance

Fintech companies in the insurance sector are bringing all of the conventional services online, just like digital banks. These Fintech companies can offer life and health insurance with superior underwriting procedures while aggressively undercutting traditional insurance providers because they can charge variable premiums based on the customer. These insurance policies can open up commercial opportunities that insurance firms have just begun investigating when combined with targeted marketing.

Access Transaction delivery

The ability to effectively manage data can provide invaluable insights into the demands and desires of the client. Data is the new oil. To gather customer data and then share it with the rest of the group to map the customer’s capacity to pay premiums, invest in real estate, buy mutual funds, etc., financial technology entrepreneurs in the transaction delivery space are developing free solutions, including cost management apps. Fintech companies operate under a commission-based business model by reselling financial products from third parties.

Safer Payments With Gateways

Payment gateways allow customers to pay for goods and services on a retailer’s website. Various payment options are available today, including cryptocurrencies, digital wallets, debit cards, and credit cards. Unfortunately, banks typically impose astronomical fees for processing transactions from these numerous channels. Still, fintech companies are combining these payment channels into practical apps that internet retailers can easily afford and incorporate on their websites. Businesses offering tangible goods or services to end customers are the typical users of these payment apps, such as Stripe, Alipay, and iZettle.

Easy Asset Management

Have you ever heard of buying mutual funds or stocks without paying a commission fee? In exchange for their data, fintech businesses are allowing investors to trade for free. They deliver this information to high-frequency traders, who can then affect the asset’s price. The investor may pay a little higher price for their asset, but there is still a positive differential between what they save on trading fees and the marginal price rise.

Small Ticket Loans Have A Big Market

Due to the poor margins and significant setup and recovery expenses associated with smaller-price loans, banks and other lenders often do not want to underwrite them. Fintech companies in this industry segment (like Affirm) offer one-click buy buttons and impulse buy mechanisms on e-commerce websites to let clients make quick purchases without submitting any authentication or credit card information.

We can buy almost anything outright with the opportunity to pay in installments. This is thanks to the average 0% interest rate at which these loans are underwritten. So how does one make money? By disclosing customer information to the original equipment manufacturers (OEMs), who stand to gain the most from the decreased cost of these gadgets. Highly individualized marketing offers are ensured with algorithms that ascertain customer demographics. Consider sharing your data with them as the loan’s interest.

Alternative Credit Scoring

Due to stringent and antiquated credit score standards, many self-employed people with a reliable source of income fail traditional bank loan screens. By taking into account alternative data points like social signals and percentile scores among comparable borrower groups, credit rating fintech companies are adopting a novel strategy. With time, better lending judgments may result from combining all these qualitative factors with an intelligent and self-learning algorithm. For instance, a lender can avoid dealing with loan recovery if there is a means to identify unfavorable profiles based on social presence before loan disbursement.

Alternative insurance underwriting

Two people today who are the same height and weight, don’t smoke, and don’t consume alcohol will receive the same life insurance premium. But one individual can be a fitness fanatic, while the other might be a couch potato who is more likely to get diabetes and pass away from it. Since risk premiums currently don’t account for characteristics that aren’t quantifiable, average out (also known as normalizing in actuarial terminology) leads to these incorrect premium computations.

Fintech businesses are developing variable premium computing processes utilizing alternative data points like social signals, lifestyle, and medical history, similar to alternative credit scoring. These InsureTech firms may decide whether to offer insurance, present various terms and conditions and provide numerous payment choices when combined with intelligent and self-learning algorithms (for example, co-pay options).

The Bottomline

Fintech firms have a considerable role to play in the futures of almost all industries. They are revolutionizing both precedent and retrospect. As the world evolves, fintech innovates.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Shraddha Agrawal

Shraddha is the Director of Marketing at Signzy. She is an adept, goal-driven professional with 11+ years of experience. With an unwavering innovative spirit and a profound commitment to organizational growth, she is determined to enhance all her endeavors. She keeps herself updated with the latest digital marketing trends to stay ahead of the curve.

Garnering the Gig Economy- 3 Ways The Fintech Industry Leverages AI To Enhance The Gig Workforce

In 2021, there were nearly 23.9 million independent/gig workers comprising the Gig economy in the United States, an increase from 12.9 million in 2017, according to the 2022 Gig Payments Report. The study further illuminates that 85% of respondents have increased their gig work, and 58% cited inflation as their primary reason for this. The number of workers is still growing with rising inflation, pandemic-era job losses, and the work-life balance mindset.

Conventional financial services are not tailored for the needs of gig workers. This is because many banks focus more on premium and higher-income customers. Additionally, they lack access to data about the financial behaviors of gig workers, who often have to keep their financial activity unregistered. Their paychecks often fluctuate with jobs coming and going from one month to the next. This lack of a steady income means these workers struggle to access investment accounts, loans, insurance, and other financial products. They are also likely to face difficulties paying for unexpected emergencies, such as costly medical treatments.

For fintech industry companies, an opportunity awaits. Many financial technology ventures have recognized these workers as potential customers who are underserved by the traditional banks and are now playing a pivotal role in powering the Gig economy. We at Signzy like to stay ahead of the curve and have been focusing on providing financial technology services that are easy to use without compromising quality. Let’s see how all this has helped the growing sector.

AI From Fintech Industry Companies For Gig economy

Gig Payments Report states that gig workers prioritize speedy service while receiving payments. For example, 70% prefer to receive their payment on the same day they work while 39% choose immediately after each job. Only 29% prefer it at the end of each day. Additionally, with rising inflation impacting work and personal expenses for 57% of respondents, timely access to funds is crucial for their financial needs.

With a gargantuan gig economy workforce looking to financial sector to manage their finances, there are bound to be support-related queries that follow. So how can the support teams of financial technology companies rise to offer the much-needed support, especially that which aligns with the preferences and expectations of their customers today? Herein lies the chance for these companies to immediately incorporate modern AI-powered support systems into their technology stacks to resolve all customer issues.

Meeting Customers Where They Are

Not bound to any location, gig workers are constantly moving. AI-powered solutions provide resolutions across channels through email, messaging, chat, SMS, and voice for support when they require it the most. Most of Signzy’s API resources enable the institutions with remote-friendly solutions. This can be for onboarding, KYC, etc.

Moreover, they are constantly busy, and gig work is often a side hustle that supplements their income (Branch and Marqeta’s report defines only 27% rely on gig work as their major source of income). By leveraging AI, fintech companies can offer proactive customer service – addressing a customer’s issue before they encounter one- by detecting or anticipating the problem in advance and extending the necessary support to resolve it. Some of the use cases are:

  • Warning a customer that their bill is soon due.
  • Reminding customers to transfer balances from one account to another.
  • Alerting customers that there may be an improved savings account option than their current one.

Such proactive, preemptive, and predictive support is much needed for the workforce. We ensure that you get it at Signzy.

Fast, Immediate Solutions

Terraforming the customer support landscape, AI-powered chatbots for customer service have become significantly efficient by delivering personalized solutions immediately and automatically for a truly effortless experience. In addition, AI can automate resolutions to high-volume, repeatable tickets like paying monthly bills and resetting passwords, freeing up human agents to focus on the more complex issues and decreasing resolution times. The result? Faster and more consistent customer support, and less fielding of common and repetitive problems for the support team.

For example, suppose a customer has doubts about the loan application process. In that case, a chatbot could efficiently provide a relevant article from a company’s knowledge base that covers this topic in detail. Furthermore, if it is connected to the correct backend systems, it can even provide the real-time status of applications.

AI-driven solutions enable fintech companies to improve their support for customers’ needs. This includes access to 24/7 support outside of standard working hours when support teams are unavailable to respond to queries. This also reduces the cost of keeping a human support team on standby in case of an unexpected ticket spike. In addition, this type of support is ideal for gig workers who work irregular schedules but still need support access from their financial service provider. One of the emphasized areas Signzy focuses on is this kind of support for our clients. We ensure to take care of everyone.

What Signzy Is Adding To The Growth

Signzy has been in the fintech industry for nearly a decade now. We began with the idea of having fully customizable AI-driven automated solutions for all onboarding and KYC problems. But since its inception, we have kept in mind the further horizons we would explore. The time is nigh, and we are helping out in all the industries we can. With the Gig economy, we believe our services can provide a strong foothold in ensuring the right customers for all financial institutions. We make sure to make it simple for everyone.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Mahesh Mohan

Mahesh is a Creative Writer intent on learning and sharing knowledge. He believes Finance is the matrix of functionality, and Technology is evolution. Amalgamate the two, and you get the most dynamic beast in modern civilization- Fintech. He explores this sphere with keen eyes on the terraforming ecosystem. He tries to balance his professional enthusiasm with his passion-driven love for history, mythology, and stories of all forms.

The Future Of Fintech Industry’s Finest- 7 Predictions On Where It’s Headed

In 2022, the fintech industry is estimated to be $179 billion. This is expected to reach $213 billion by the year 2024.

Knowing how big it will grow is helpful, but there is more than meets the eye. The intricate factors and latent possibilities drive the growth. Determining a probability for this in figures is near impossible. But we certainly can determine the possible tangents where the financial technology industry is headed.

Here are 7 predictions on how the fintech industry will be transformed.

Explore the future of financial technology with these metamorphosing predictions that range from hybrid cloud solutions to exponential computing processes. Not only is the fintech industry changing payment methods and investing options, but also how any business works.

Advanced Hybrid Cloud/Server Solutions

The unavoidable nature of a well-planned ecosystem strategy is crucial, as is effective and efficient orchestration. For example, open banking lets customers share their financial data with other apps and vice versa. In addition, real-time intelligent data integration is possible with hybrid cloud (cloud/server) solutions.

Cybersecurity Teams And Their Convergence

Cybersecurity and anti-fraud teams are conventionally separate departments in financial companies. They are usually focused on different threats and risk factors from various entities. As cyber fraud allows criminals to exploit this division blatantly, banks will soon rethink the organization of these teams. Crimes like synthetic identity fraud are aided by artificial intelligence, automation, and other banking technology, unlike traditional approaches to fraudulent theft. These separate teams will combine as banks and financial companies and institutions realize the joint expertise of cybersecurity managers and fraud investigators is required to combat these threats. Inadvertently, the CISOs – probably with the largest cybersecurity budgets compared to any industry by 2023- will take on the anti-fraud team’s responsibilities.

Defi Over Cefi

DeFi is short for ‘Decentralized Finance‘, also known as the Open Finance movement. At its foundation, it is a blockchain-based form of finance focusing on removing the conventional reliance on CeFi (Centralized Finance). Consider removing the requirement for intermediaries such as exchanges, brokers, or banks to handle settlements of any transactions and move that into a smart contract on the blockchain. The objective is to revolutionize finance and vest the power back to the relevant investors and funds. We are already headed in this direction and can expect DeFi to become a vital part of the financial ecosystem.

The Inevitability Of The Best Customer Experience

The financial services industry has refocused on putting consumers first. As a result, the current consumers are relieved and liberated with a wide range of products and services. This grants a newfound sense of power over their spending habits. With a rise in card-linked rewards, personalized loyalty programs, BNPL solutions, and much more, consumers have multiple choices on how and when their money is spent. As a result, banks and fintech need to evolve their offerings to meet customers’ demands constantly. This will continue well into the banking’s future, effectively making end-users the winners. The power vested has shifted to the consumers, and it is not going away anytime soon.

Newer Modes For Identification

The fintech industry will enable communities to create bank accounts without requiring KYC verification processes with identification documents that may not exist or be accessible. Moreover, by making it available for individuals to avail of financial services, it’s certainly possible to generate greater access to borrowing services, remittances, and even investment tools/options. These may pave the way to creating businesses, better debt management, and financial security.

Exponential Computing Power And Processes

By 2050, computing power and network speeds will handle unimaginable volumes of data. As a result, business and the financial technology sector will generally become more automated and real-time. Larger volumes of data will rapidly flow within and between many enterprises, and cognitive computing will enhance financial systems. With this, financial teams will no longer have to expend days or weeks collating and consolidating financial and operational factors for delivery to stakeholders. Instead, summarized financially and any operational data will be instantly available to executives on a real-time basis. This will support “right-time” decision-making.

Embedded Finance And Its Relevance

Embedded fintech will undoubtedly dominate the industry by 2030. This implies that financial services will not necessarily be offered as a stand-alone product. Instead, it will be a part of the primary user interface of other products. Good examples of embedded finance are Facebook Pay and Apple Card. By 2030, similar services will be crucial to the scene.

Leveraging The Fate Of The Fintech Industry

We can reasonably assume that the future of fintech is indeed engrossed in technological advancements. As banking technology metamorphosizes into newer forms and the financial industry explores novel venues, it is sensible to adapt to the changing time. Automation and artificial intelligence in the financial companies’ sphere is a good start. You will need to find reliable and efficient fintech service providers who will be available for your requirements. At signzy, we focus on this. Check out the webpage to know more.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Shraddha Agrawal

Shraddha is a passionate Digital Marketer and a versatile leader, working as the Director of Marketing at Signzy. She is a goal-driven professional with excellent innovative skills. Having 11+ years of experience across industries including travel, SNV, healthcare, and Fintech, Shraddha considers herself a self-empowered and self-driven individual ready to take on challenges and proactively rise to occasions in crisis. A professional who ardently believes in the right work-life balance, she ensures to spend quality time with her family. This has a positive effect on her professional life and pursuits.

Data Fabric To Weave Safer Finance- How It Can Be Used To Improve Financial Services

The excellent offerings of fintech firms derive from the creativity of startup founders and the people they drive to work for their companies, who have changed the financial technology industry as we know it. These innovators see everything possible and let their imaginations run wild when crafting ways to enhance our digital interactions. As a result of this dynamism, some fintech startups have achieved incredible success.

Conventional banks are catching up with newer fintech companies by providing fintech-like experiences and innovative new products. Perhaps these banks are inspired or threatened by what they see in the fintech industry. But, regardless of their drive and motivations, they are increasingly willing to up their game to the plate and compete with novel fintech offerings. This is because fintech and multiple banks — at least those that want to be around in the future — clearly understand that state-of-the-art technology is vital to remain competitive in the sector.

Thus, banks, other financial institutions, and fintech companies deploy new technology to meet their implied promise to customers that if the customers come to them, they will get better services, offerings, and products. This is how AI-artificial intelligence, machine learning, deep learning, big data, and data science have entered the finance industry. Therefore, financial institutions should obtain as much data as possible to use this technology and provide a competitive service and good user experience without compromising data privacy.

The Fundamental Requirement In The Fintech Industry

This fundamentally requires financial institutions(FIs) to consider the regulatory constraints on data access and use. A further challenge is that, while many companies might be great at collecting mass and personal data, they may actually have difficulties uncovering actionable insights that could help them provide better banking offerings and customer experiences. It certainly does not help that more extensive and older financial companies deal with data silos, legacy systems, and unstructured data. And then, there is the big baddie of cyber security, which leads many executives to hold back when developing new strategies for collecting and using customer data.

Data is the new oil. It’s precious, but they can not use it if it is unrefined. It has to be transformed into gas, plastic, chemicals, etc., to create a valuable entity that drives profitable activity, so all data(even personal data) must be broken down and analyzed to generate value.

Many would agree with this analogy. But unfortunately, companies have difficulty truly managing the vast amount of data and information available in our technologically networking world. This data is stored in various formats and places, making it challenging to fully utilize its power and potential. In addition, this data is increasing exponentially due to the digital footprint that all the customers leave on all the available online services they use.

Data Fabric- Handling The Issue Of Mass And Personal Data

The problem is that we have too much data. This is precisely where data fabric will help companies. The data fabric’s value is that it enables improved insights because it provides access to more data from an extensive pool of varied and distributed data sources. This is on-premises or in public clouds that businesses usually use and identifies the specific relationships between data to provide better context. In addition, the data fabric ensures proper data governance, which is vital when scaling the utilization of data for analytics and AI.

This ensures proper data governance and allows companies to implement a winning technology strategy. In addition, a data fabric architecture will enable companies to utilize a hybrid and a mixture of multiple clouds, allowing portability in data storage and applications. For instance, IBM’s definition of a hybrid cloud includes on-prem data stores and applications, not necessarily just an on-prem private cloud.

Despite the challenges and hurdles posed by an excess of data, numerous players in the financial technology sphere are moving in the right direction, seeking to overcome the significant obstacles that come with the increased implementation of artificial intelligence and customer demands for personalization. Data fabric addresses multiple issues companies face in their attempts to better and update their technology strategies. Furthermore, it helps institutions comply with strict privacy regulations while using customer data.

Taking It A Step Further

In financial technology services, tech-savvy users long for personalized offerings that consider their financial history and present financial situation to give solutions based on the current requirements and anticipate future needs. To meet this requirement, companies need many data points to make sense of the vast amount of data collected from their customers and give them comprehensive solutions.

If a company knows its customers better and designs solutions based on this knowledge, there will be benefits for the customer and the company.

Many would wish financial companies to take their sophisticated pasts and presents into account to provide them with a more “humanized” banking experience, regardless of the growing use of technology required to reach this.

Faster extraction of the insights is a value of a data fabric; the embedded capability of governance ensures that appropriate data privacy and security is maintained — this is especially critical in the FSS industry. Also, data does not have to be moved and can stay secure at its source per the comment above is essential for highly regulated industries such as Financial Services.

Suppose a company is not up to speed with the better, richer insights gained from properly implementing a data fabric architecture. In that case, it will likely lose out to its competitors. The primary reason is that the customers may move to newer banking providers whose financial solutions are better matched to their current life situation and seamlessly adapt to their future needs.

Racing The Race With Data Fabric

The race is becoming increasingly tense — within the crowded space of new financial competitors, ranging from fintech startups and banks to non-financial companies taking advantage of this embedded-finance trend.

For the future victors in the financial sphere, the right data fabric strategy is not merely an option but a necessity. 

Any such form of revamping or upgrading in any organization, done alone, is not smart. It’s always better to see how experienced experts can help you out. Signzy holds a plethora of resources that can improve your processes to a greater extent. With our AI-driven products and services, you can make things better.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Mahesh Mohan

Mahesh is a Creative Writer intent on learning and sharing knowledge. He believes Finance is the matrix of functionality, and Technology is evolution. Amalgamate the two, and you get the most dynamic beast in modern civilization- Fintech. He explores this sphere with keen eyes on the terraforming ecosystem. He tries to balance his professional enthusiasm with his passion-driven love for history, mythology, and stories of all forms.

Tackling Talent Shortage in The Fintech Industry And Other Financial Services

With a stunning 182% boost in tech job growth, the global fintech industry did exceedingly well in the first quarter of 2022. But it is predicted that the sector will face massive hurdles in the coming quarters of 2022 as a significant shortage in tech talent threatens to decrease the growth of the global fintech sector.

Although lack of skilled labor accounts for part of this concern, the primary issue lies within increased attrition. Some may even attribute this to ‘The Great Resignation’ phenomenon. Nonetheless, there must be ways to consider this.

As soon as Fintechs improved at loping the client acquisition challenge, talent acquisition and retention became a new obstacle. The threat of losing a qualified and growing workforce and customer service amplifies the sales-related stress. With that in mind, retaining talented people is becoming as important as bringing in new customers.

From Where Does The Concern Incept?

Among the primary concerns that prevent employees from being efficient and loyal to their jobs is a maze of offers from other companies. However, with the increased presence of open banking and the rise of new fintech players, employees have ample choice now in what they do and where they want to do it.

Since 2001 financial technology workers in the USA quit their jobs at the highest rate, according to a 2019 US Bureau of Labor Statistics report. This increased to a tremendous rate following the COVID-19 Outbreak. In December 2021 alone, 4.3 million Americans quit their jobs. It’s therefore vital for businesses to ensure that they have the right work cultures and processes to enable and nurture talent, especially as they are going through hyper-growth.

Now is the time for executive and primary leaders to acknowledge and adapt to the evolving needs of their employees. This is to be done with as much dedication and commitment as they provide their customers. Gallup reported that more than half of the workforce in America is disengaged from their respective jobs. At the same time, the engaged employees considerably reduce the associated cost of turnover, which usually remains high. The overall customer experience and annual revenue directly link to employee retention and decreased attrition damage.

According to another report, the draining shortage of software engineers in the fintech industry in the past three years makes recruiting harder. Unfortunately, this also increases the time to fill exponentially. As a result, the cost of incorporating a new software engineer into the workforce is rising, and a reputed HR brand, together with employee retention and decreased attrition processes, increases in importance.

Ensuring Employee Retention With A Good HR Brand

Companies that understand and value employee experience are already on a good start. They should promote initiatives to improve the employee experience. As a result, their customer experience success rate will boost. The favorable outcomes earned through apt and efficient strategic employee engagement will generate a workplace culture that values the trust among employees as well as external customers they interact with each day.

The game plan must include multiple vital components to keep the HR management on top, well-informed, and proactive. There are several aspects to consider while pursuing this goal. Still, to keep it concise, the following are the primary three points you must never ignore when it comes to interacting and engaging the employees:

Speak To And Be Accessible To Your Employees.

A famous firm that shall not be named refers to its employees as resources. It seems absurd to reasonable ears to hear a human being referred to as a resource. Moreover, it gives an outright impression that the company sees its employees as objects. This is the wrong approach.

Your employees are your company’s spine. They are humans. They need proper communication with their colleagues and must feel secure. When isolated, they will feel insecure, resulting in inefficient performances. That’s why talents value good management’s transparency and approachability in a friendly atmosphere. Hence, when you interact with your employees on casual topics or engage in occasional conversations, consider letting them know of your good mood; it highly encourages their loyalty and sincerity, which are vital to keeping them on the ship.

Improve Talent With Effective Educational And Growth Opportunities

A proper sense of fulfillment at work fundamentally depends on how the enterprise recognizes and acknowledges the individual traits of an employee. If a company focuses on encouraging growth and formulates a professional pathway for each employee, it resolves numerous problems at the workplace. Some of the perks include:

  • It shows that employees are valued and vital to the organization.
  • It helps engage their interests and allows them to concentrate and be actively efficient.
  • It fetches the best talent out there.

Enhancing business knowledge is essential for all employees’ professional training and support for growth. Accompanying the loyalty this deems, it brings a better understanding of internal and external processes to the game, helping the management avoid any mistakes. It also shortens development time to nearly 50 percent. The usual personal financial perks provided for employees in the fintech industry will also help. They learn more about investing, banking processes, and different financial companies/markets. The employees can benefit from all this by making better decisions to engage in good financial companies.

Make Sure to Engage Teams, Especially The Remote Ones

Today, creating distributed teams is a current trend in team management. If managed resourcefully, your company will benefit from hiring remote individuals and skilled labor. However, it’s an unfair conclusion that having a widely distributed team is a high risk. Proper management makes such a team more than a success. Unfortunately, only 8 percent of the companies that utilize alternative workers know how to establish processes efficiently. There are methods to determine and resolve the problems in the fintech industry that diminish the team’s efficiency and ensure that the transition to a distributed team is safe and smooth.

Remote employees  also need to communicate with peers, craft networks, share opinions, and know that they are acknowledged and appreciated. Ensure to make them feel to be part of the work family without insisting upon it; they will chime in more than they need to when it’s needed. 

In Essence

Considering the current scenario of the Great Resignation, many leaders are taking action. For example, a recent report from Gartner revealed that 58% of all IT heads reported an increase in emerging tech investments in 2021. In 2020 this was 29%. And most of this will be aimed at sustaining a talent-rich environment in the industry.

Skilled labor is indeed hard to retain. Finding it is harder still. Hence with consideration for the employees without compromising the vision each enterprise engages in, we can pave a path forward. And this path can lead to the penultimate sustenance of a self-engaged financial ecosystem, ultimately tackling the talent shortage in the fintech industry. From thenceforth, we can pursue what every innovative fintech aspires for; a revolution in the sector for the better.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Ankit Ratan
CEO & Co-Founder, Signzy

Ankit is the CEO and Co-Founder of Signzy, with over 12 years of experience in multiple industry initiatives and companies across the globe. Over these years, his expertise developed in fintech, regtech, IT, and ITES crafts excellent results in all categories he spearheads. He ensured the success of Signzy from its inception, winning numerous awards from the RBI, Monetary Authority of Singapore, IBM, Thomson Reuters, and Forbes 30 under 30, to name a few.

 

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