The Fintech industry has exploded with the development of mobile technology. With over 800 Fintech companies based in Australia, we have one of the most exciting and competitive Fintech industries. However, to stay ahead of the game and meet customers' changing expectations, companies need to leverage their location data.
With the ongoing growth of Fintech, huge amounts of data relating to the location of customer transactions and purchasing patterns are now being collected. This is an opportunity for Fintech companies to understand and apply location data to their marketing, credit risk and other areas within the business.
Loqate GBG performed a study in 2018 to see how different industries feel about the use of location intelligence data. For 47% of respondents in the Fintech and finance industry, location intelligence allows them to better engage with customers, in a way they never have before.
To build on these findings, we have put together our top four reasons why your Fintech company should be investing in a spatial strategy:
By capturing a customer's interest at the right place and time, well-implemented push notifications can create an engaging customer experience and increase customer satisfaction.
Push notifications have the ability to keep customers updated with appropriate and timely information. For example, Monzo customers receive a push notification when they land in another country, showing them the current exchange rate. They also receive a notification based on their holiday spending behaviour after the app tracks their return home from abroad. The push notification will then display how much money the user spent outside of their usual currency.
Furthermore, according to data from Accenture, around half of all customers state that they want their banking provider to play a supporting role in the purchase of non-banking items, such as a new car or house.
Fintech companies can leverage location intelligence to pinpoint these opportunities based on the shopping habits of its customers. For example, your customer spends the day visiting various car dealerships around the city. Using this location data they have shared, you can send push notifications informing them of your current promotional interest rate on an auto loan.
In times where a busy lifestyle has become the “norm”, using your credit card to quickly tap and purchase small items such as a carton of milk has become a reflex, something you don’t think twice about. It isn’t a surprise when customers cannot recognise or recall an unfamiliar transaction in their monthly bank statement.
To verify this unknown transaction, customers will call their bank to ask for the exact location of the transaction in question. This requires time and effort from the customer, but it also occupies valuable time for the employee.
By showing customers where they made a transaction on a map, companies will not only save valuable working time but also improve brand trust, because users aren’t left confused and desperately trying to think of what different transactions could be.
Fintech companies, such as Monzo use Google Maps Platform to show users helpful information about their transaction such as the name, location and business logo of their purchase. Learn more about visualising user location on financial transactions here.
One major challenge companies face today is validating or verifying addresses. Many banks and financial services organisations are faced with large amounts of addresses entered in a random manner by their users.
By integrating the Google Maps Places Autocomplete API into your customer facing platform, you can ensure a faster experience for the user and more accurate, clean data for your company with the API’s ‘type-ahead’ feature. Customers can start typing their address in the form and be provided with address suggestions to be selected, validated and stored in a readymade format for future reference.
Despite efforts to improve credit card security, hackers continue to outscore regulators and security officers, totaling more than AUD $530 million in card fraud last year in Australia alone.
Thankfully, Fintech companies can significantly reduce card fraud with the simple use of location intelligence. By assessing the distances and times between transactions, they can pinpoint spending anomalies and unusual patterns in real time.
Further, Fintech companies can use location-based data to match the purchase location and current location of the customer. For example, the US Bank integrated a geolocation service into their mobile app that enables the location of a card transaction to be matched to the location of a user's phone.
Both of these location strategies help to rapidly shut down fraudulent activity while building customer loyalty and intrinsic trust through strengthened security.
Liveli is a Google Maps and Cloud Premier Partner that can help you build spatial solutions for your Fintech project.
We are also Google Maps Platform specialists, if your business is using Google Maps Platform already on your website or apps - get in touch with us for help and support, or to find out more about how you could be leveraging volume tier discounts and saving on your monthly Google Maps bills.
Get in touch with us if you’re ready to take your Fintech project to the next level.
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About the author: Amy Boyes
Amy is the Marketing and Events Officer at NGIS Australia.