All the next-gen financial technology in the world is useless if clients do not trust you. And trust begins with deeds and proper communication.
SVB’s bankruptcy has several lessons to teach us. To me, the main one is that communication matters, especially in times of crisis.
In this article, I’ll show you how proper communication can increase customer engagement, cement customers’ trust in your services or product, and save your business from sinking. Also, I’ll show what makes up a benchmark business-to-client communication in Fintech.
I decided to write this blog entry because of the recurrent story of failed crisis communication in the financial sector. Before SVB, there was Equifax, and before Equifax, there was a sequence of other silent sinkings.
I believe that if we talk more about the importance of timely and well-planned messages to our customers, we’ll be able to avoid ruined businesses and careers. Moreover, by consistently leveraging communication, fintechs can enhance customer retention and propel their business to the new level.
That’s why I start with SVB’s end.
What went wrong with SVB’s crisis communication
Just a few days after the Silvergate crash, Silicon Valley Bank dropped a press release stating it was looking for cash injections. That decision was far from the smartest in the tense atmosphere of uncertainty and fear in the U.S. banking sector. As a result, we saw a bank run, SVB shares plummeting, and the subsequent collapse.
The worse the situation, the more honest, careful, and detailed the explanation should be. SVB, on the contrary, restrained from explaining the reason for its request and providing a clear action plan. That was on top of the bank’s long-persisting silence on the whole crisis.
Checklist for crisis communications
Ask the questions from the business communication checklist below to yourself and the responsible people in your company if something is off track:
- What is the situation? What do we know about it? What don't we know yet, and when will we find out?
- What will be the effect of sharing certain information about the crisis? Could it make things better or worse, or have no effect? What questions might we be asked, and do we have answers? What should we do to get the answers?
- What steps will we take to address the crisis, and how will we communicate those actions to the public? What resources do we have for responding to the situation? What are the potential consequences of not sharing information, and are we prepared for them?
- Why are we sharing this information about the crisis?
- When will we announce what we know about the situation?
- Who do we need to notify first? Who will deliver the message and why? Who can help us share the news we need to share?
- Where will we deliver the message?
Why your Fintech company should focus on communication
Saving your business from a collapse is a pretty heavy reason for that. But when there’s no hint of a disaster on the horizon, a well-crafted communication strategy can help you get new clients and retain the existing ones. Here’s why.
- 50% of clients run a research before becoming customers of a Fintech company.
When trusting their money, people should be confident in their financial service provider. What they read about your company, its reputation, and the range of services should persuade them to become your customer.
- Fintech jargon and lack of financial literacy stand between you and your potential customers.
It might not seem obvious, but investing, tax payments, and other financial services can be complicated topics for many, covered in myths and misconceptions. A blog explaining financial concepts, from what BNPL is to how options trading works, is most helpful. You can also outline the common challenges people face in their financial lives and how your product can help them overcome them. Fintechs should literally break it down to their potential customers.
- Gaining trust is fintechs' biggest challenge. You should be persuasive, and that requires communication.
Trust is hard to win and easy to lose. 68% of people revealed to Project.co that poor communication from a company made them leave and turn to their competitors. Whether it’s company updates, introducing new features, or technical issues, ensure your customers get detailed and timely information.
Engineering insights from vendors of top Fintech companies
Top 5 things your customer communication should be
Real-time
While customers increasingly prefer to chat with humans rather than chatbots, the former cannot fully cover the need to address issues in real time. As the life pace increases, customers demand immediate solutions or updates on the resolution process.
If there’s a technical issue or other problem, ensure your company communicates it via the relevant channels as soon as possible and keeps the customers updated. Always tell what actions the company is undertaking to solve the issue: that makes people see you as a confident and reliable provider.
Transparent
Hiding the information or distorting it in any way is a bad idea. Fintechs understand that since they have regulations at their back. However, transparency should be present not only in the service description or policies but in every aspect of your communication with clients. It should fill technical support chats, calls, and every pattern of your app’s UI/UX design. Think of your client’s experience as a dentist appointment: you’re more comfortable when the doctor tells you what they will do next, how long it will take, and when they will finish a particular action. That’s real-time and transparent communication.
Clear
Ensure there’s no vagueness and ambiguity in your communication with the client. Intentional or not, confusion eats at the trust, as it might make your business appear dishonest or malintentional. Also, any confusion regarding your services, functionality, or terms and conditions will increase the workload for your customer support team.
Clarity also presupposes that all the information is up-to-date. For instance, if the steps of the loan application change, then the information in the FAQ section should be updated immediately. As for customer support, make sure the team and the new hires have the latest information needed.
Personal
We may all go digital, but people still need a personal touch to win their hearts and increase engagement. Use email templates but add the recipient's name. Provide numbers but tell a compelling story that will evoke the reader’s emotions. Write about the company’s challenge but go into detail about how the customer will or will not be affected. Personalization is the communication trend today and will stay one tomorrow.
Secure
By entrusting your company with their money and personal data, customers rely on your protection. Put in place robust security mechanisms to protect your customers' sensitive data, for instance, encrypted messaging apps or portals for customer communication. And let them know about all the multi-level security you have! Create the feeling of protection with words that are underpinned by action.
The power of words makes Fintech go round
Proper communication is vital to any Fintech company's success, starting with timely and well-planned customer messages. By leveraging communication effectively, you can boost customer engagement, retain existing customers, and ultimately grow their business. INSART can help you build highly personalized software with clear and intuitive UI/UX, ensuring that customers receive real-time, transparent, and reliable information.
Keep a communication checklist at hand and ensure your communication strategy aligns with your goals. For all your software development needs, call INSART.