Determining future fintech trends is always a challenge. It now appears that this industry will need to follow in the footsteps of traditional financial institutions.
Most fintech companies focus on providing one product or service. In doing so, they can offer a better service or user experience. While consumers appreciate those efforts, it may only be a temporary trend.
Rebundling Services is key
Banks have become so popular due to their plethora of services and products. Ranging from accounts to insurance and loans, financial institutions have their fingers in many pieces. The downside is how they don’t necessarily offer the best user experience across the board.
For fintech companies, the bundling of multiple services may prove to be crucial. Throughout 2019, this approach has gone through a revival of sorts.
Offering more services not associated with the core business model is not a complex prospect either.
Having to use a handful of apps for financial products and services is far from ideal. A banking app offers everything at one’s fingertips. It is not unlikely that fintechs will have to take a similar approach.
Any financial services provider needs to make money and turn a profit. The rebundling of services will play a key role in doing so. Not only is it a matter of convenience, but also revenue. More services provided will result in more revenue when done correctly.
Diversification is key in the financial sector. This applies to both services and investments alike. For fintech companies, diversifying revenue streams can yield a sustainable business model. This approach also allows for customizable fee structures, for example.
Improving Customer Loyalty
When it comes to financial services and products, retaining clients will be crucial. Rebundling financial products seems a no-brainer in this regard. More services give customers more reasons to come back and remain active within the same ecosystem.
Secondly, offering multiple services guarantees the sustainability of a fintech operation. It also improves customer engagement across the board. Picking which services and products to offer will be an ongoing process. Not every startup needs to have the same exact offerings.