Financial technology companies process transactions and lend funds in greater quantities than ever before, and they are initiating new financial business models. These money-oriented businesses need 100 percent uptime, and their success is predicated on the consumer perception that they are as reliable as, say, the dial tone.
If an online payment or loan request suddenly hangs in the middle, the consumer may ask, “Did it go through? Do I need to resubmit? I don’t want to end up paying or borrowing twice.” This uncertainty erodes brand equity and makes people hesitant to use whatever fintech platform had the glitch. And while it may have gone largely unnoticed in the past, today with Twitter and other social networks, every downtime or process that does not work – no matter how minor – gets amplified by being shared widely.
The Fintech Advantage Hinges on Customer Experience
The whole idea of fintech is that traditional banks are ill-suited to provide the on-demand experience that customers now expect. Who enjoys trekking to a physical bank office, paying bills via handwritten checks or waiting days before transactions go through?
With the rise of fintech and digital banking, you may never have to visit a physical bank again. What’s more, online banks can provide advanced savings options, higher interest rates, budgeting applications and more. Without the weight of legacy applications dragging them down, digital financial institutions can add new features faster than their traditional counterparts — features that tend to work better out of the gate as well.
The problem with this, of course, is that when these features stop working, the customer doesn’t have a physical location to go to and complain. As such, companies need to be as good about handling glitches as they are about adding new bells and whistles.
Redtail is one recent example of a fintech company that got it wrong. Due to a misconfigured server, the wealth management app exposed the names, addresses and social security numbers of hundreds of its well-heeled clients. Despite the severity of the breach, Redtail took over 80 days to notify affected users — a delay that caused many clients to take their business elsewhere.
In the normal course of doing business, fintech companies can experience churn rates of up to 30 percent. Keeping these numbers low — and by extension, out-competing one’s rivals — means taking a more proactive approach to incident management.
Proactively Manage Fintech Incidents with Anodot
Every transaction, click, purchase, etc. generates a data point, and together they form a vast number of data streams. Anodot automatically learns streaming data’s normal behavior, including seasonal and other complex patterns, to identify and alert customers on any combination of metrics that behave abnormally. Anodot finally provides fintech companies the tools needed to detect and diagnose issues early, resolve them quickly, and take preemptive actions before they turn into crises. This is a drastic change from the static nature of BI as it exists today.
Use cases for fintech include:
- Payment Processing – Identify unusual drops or increases in error rates across multiple payment entities, geographies, devices (e.g. inability for Android users to submit payments using Visa); flag unusual number of payment declines or credit card refusals
- Partner Integration – As a fintech provider it is crucial to assure the health of your customers’ integrations. A code push on either side can potentially break the integration and cause a lose-lose situation.
- Personal Finance Apps & Websites – Keep partner offers running smoothly by tracking offer integration, conversion, devices and more; identify campaign effectiveness
- Lending, Crowdfunding & other Web/Mobile Fintech – Spot critical bugs post deployment in real time before they become emergencies – e.g. increased latency on pages, behavior changes among visitor activity or agents
The success of the fintech model depends on protecting customer experience — it’s one of their main selling points versus traditional financial companies. Customers want to make seamless transactions on mobile, and use self-checkout for complex financial processes with ease, while being assured that their personal data is safe. With Anodot, you’ll be able to meet your SLA standards and keep customers happy.
Learn more about Anodot for fintech companies by contacting us.