Non-traditional or FinTech firms are fast catching up with traditional firms in financial services. This rise of FinTech players has been caused by multiple factors of increasing customer expectations, expanding VC funding, reduced barriers to entry, and increased pace of technological evolution coming together to form a perfect storm.
Traditional firms have been slower to respond to rising customer expectations and as a result FinTech providers have exploited the gap as more than half of them use at least one FinTech provider across domains. Customers are embracing new FinTech providers, with compelling offerings, taking advantage of the latest in technology to deliver better value propositions. As Hardeep Walia, Founder and CEO of Motif Investing (a FinTech firm) noted during his agents of change discussion, "Everyone should focus on what they do best and for us it really is core innovation".
However, with all the progress made by the FinTech firms, traditional firms still hold the trust advantage with customers. At the same time, despite increasing prominence in FinTech or high trust in traditional firms, the customers indicated significantly low levels of overall positive experience throughout (31.1%) all the firms. In fact, both traditional and non-traditional firms struggle to meet customer expectations on the most important "Moments of Truth"
To learn more about the key moments of truth, including the areas where traditional and non-traditional firms outshine each other, and the key customer segments and touchpoints which the firms need to address, please download the report.