Amid the rise of FinTech, Financial Services brands are improving their digital offerings. Nearly half of brands in L2’s Digital IQ Index: Financial Services offer an online “Find an Advisor” tool that – in theory – matches customers with authorized agents delivering highly personalized service and support. However, L2’s FinTech Disruptors report suggests that most of them are unable to compete with more adept rivals.
When L2 researchers reached out to 20 brands offering advanced prospecting tools with a request for more information, only eight brands responded – indicating missed opportunities. Furthermore, just five of those eight brands responded within 24 hours.
In contrast, many FinTech disruptors are building products with quick, actionable services that cater to the changing expectations of consumers. For example, insurance startup Lemonade carries out initial consultations with an AI engine called Maya. Despite the lack of a human factor, Maya is as personable as any agent, if not more so. “You may not remember me, but we’ve met before,” she writes in one customer email, closing with a smiley emoticon.
This approach appeals to young consumers, according to the study. Nearly 90% of Lemonade’s customers are first-time buyers (in other words, millennials) and 78% of “switchers” defect from the top-five Property and Casualty providers. As millennials account for a growing share of Financial Services customers, firms failing to provide responsive financial technology could lose out to newer rivals.