Through the amalgamation of finance and technology; the word Fintech was born.
Some say that the inception of this term was around the 90’s, but it didn’t translate into our vernacular until around the Global Financial Crisis (GFC) of 2008. At present we are in ‘Fintech 3.0,’ the latest installment of this ‘new-norm’ in how financial organisations are conducting their customer-facing interactions.
Awareness and understanding of the fintech sector is generally scarce. Understanding that relevant data exists and knowing how to incorporate it into your operations is a huge opportunity for organisations, as discussed by Angel Nguyen Swift, VP of Compliance and Financial Crime Solutions at Enigma. This reality is universal to the sector, found a Boston Consulting Group study, which concluded that companies had 7-12% revenue growth after using geospatial data to optimise location and market planning.
The great news is that integrating location intelligence practices into your financial services apps doesn’t have to be complicated. In fact, much of the data you need to successfully harness location intelligence in your firm is probably already being collected.
Let us show you three fictional examples of how location intelligence can save you money, time and customer retention by preventing avoidable mistakes.
Tom is a millennial who spends all of his income on the weekend at brunches and nights out. Come Monday, Tom can’t account for where his whole pay was spent.
But what if Tom could open his banking app and see all of the bars he visited on Saturday night and how much he spent at each?
Well, with the Google Maps Geolocation API, banks are able to offer this service to users. Each transaction location is visible to Tom thanks to the addition of a Google Map shown on his transaction statements. Without this location enrichment feature, it’s difficult for Tom to make sense of his billing statement, because more often than not, a merchant terminal ‘name’ doesn’t always match the registered business name. Now, thanks to the map, Tom understands where his money goes and doesn’t call the bank pleading they help him classify all of Saturday night’s events. Helping both parties save valuable time and money.
Fraudulent transactions are a common problem for customers today, in fact $448,651,116 was the total value of fraudulent transactions in the 11 months to June 2020 according to the Australian Payments Network. Simon and his team of fraud detection experts work in a fintech start-up and identifying fraudulent transactions for their customers is their strength.
Simon leads the team in utilising company data and spending patterns of customers to identify when fraudulent transactions occur. With the help of the Google Maps Geolocation API, location technology allows the team to quickly shut down any troubling transactions, providing a service that adds value to the customer and protects their personal funds; ensuring they remain satisfied with their financial institution.
Without the integration of location technology, solving the customer issues would prove far more difficult. Being able to leverage location data will ensure intrinsic trust between the company and its customers. You can read more about the benefits of location technology here.
Ivan is a busy guy who likes to do his life admin from the comfort of his home or while he is on the go. He doesn’t have time to visit brick and mortar stores to organise his finances, so he decides to sign up to a new and innovative startup bank (with no physical locations), where he can control everything from his phone.
While on the train home from work, Ivan downloads the banking app and starts opening up an account. To ensure there are no hiccups delivering his welcome pack and cards, this bank has employed the use of the Google Maps Places Autocomplete API in its sign up forms. As Ivan begins to type his address, the Places Autocomplete API validates his home address based upon Google’s huge places dataset. Ivan has completed the whole process in 15 minutes.
When companies collect and store incorrect or ‘unclean’ data, it can impact their records and operations in future. Take Ivan for example, had the bank not made use of the Places Autocomplete API, he may have entered his address incorrectly, his bank card would not have been delivered and he would be an upset customer. Further to the unpleasant user experience, the bank has to front the costs and logistics associated with this error. Check out this explanation for more information on how you can implement this in your business.
Fintech is a rapidly evolving and highly competitive industry, procuring customers comes down to a pleasant user experience and valuable features that customers find useful. With location intelligence you can do just that.
Our team at Liveli are Google Maps Premier Partners for location-based services, so maps are second nature to us. Reach out and we can help you to find the best product for your business.
About the author: Claire Wilson
Claire Wilson is the Marketing Coordinator at NGIS Australia Group. The group consists of location focused companies including NGIS Australia, Winyama, Liveli and EO Data Science.