GAUGING THE MARKET
to grow , retain and serve a large user base , they must make their product accessible and accommodate different levels of financial knowledge . Some challengers are already aware of this , with companies like Lendtable , Klarna and Affirm supporting their customers in their activation journeys , no matter their level of financial knowledge .
Leverage metrics to elevate the customer experience
Challengers can ’ t improve the customer experience without understanding the broader financial end goals of each user . Take the example of someone using a product to pay off student loans . While the transactional component of making payments and saving money is important , the way to go above and beyond is to ask the question , why does
Jeremy Grinbaum , EMEA VP , Amplitude
a particular person want to pay off their student loans ? Maybe to buy a house , start a family or open a savings account for their kids . Challengers need to view their product from the user ’ s perspective : start with a financial goal and then build an exceptional product experience to support that .
The question then shifts to : is the product helping users achieve their desired outcomes ? Success metrics used to track the customer journey include acquisition , activation , and engagement . All three hold importance , but measuring engagement often isn ’ t the main priority for challengers , as their products are designed to be used for a specific purpose and for shorter periods of time . In this instance , a better indicator of success would be task efficiency , where users are both completing tasks and achieving their intended outcome .
Like any business , neobanks want to keep retention rates high . This usually means ensuring customers keep coming back to the product , but this isn ’ t really the case with FinTech solutions . Challengers may not want people returning to the product daily or even weekly . Identifying the user ’ s goal will clarify which retention metrics should be monitored and what good retention looks like for a financial product .
Understand the importance of consumer trust
Trust is central to the finserv industry . With recent market instability and economic uncertainty , consumer trust is starting to erode . But challengers can regain it . For FinTechs and challenger banks where the longstanding credibility may not be there yet , they must show why they are deserving of users ’ trust .
Customers have remained loyal to their local legacy bank branches for the same reason they remain loyal to other local amenities : the trust built through
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