Over the last few years, several mobile apps have been launched within the FinTech space, yet few have really taken off. Perhaps, because they ARE exactly that – ‘mobile apps’. Having a mobile friendly user interface, doesn’t necessarily translate into enhanced functionality or capability. Yes, mobile apps offer convenience in terms of anywhere, anytime access – their adoption still very much hinges on functionality (substance) stemming from customer needs – assuming incumbents have yet to address them. Highly unlikely, as financial services is one of the most mature industries.
Case in point: A person might decide to leverage auto pay for their monthly bill but is highly unlikely to apply for a home loan over their mobile phone. And if the person is like me, then perhaps may not even leverage auto pay to pay their monthly bills. Reason: I always have enough time to pay my monthly bills from the privacy of my home. Perhaps, in a dire condition where I am required to make a decision in a limited time frame while I don’t have access to a computer – I can see myself leveraging a mobile device. Otherwise, not interested.
The question that comes to mind is then why, are so many investors continuing to gamble on FinTech space when companies which were launched 5-6 years ago, haven’t been to establish their footing against incumbents. Adoption clearly seems to lag anticipation.
Case in point: Apple Pay service was officially launched on September 9, 2014 (source: https://en.wikipedia.org/wiki/Apple_Pay) and as per PYMNTS’ March 2016 report, Apple Pay usage is 24%, down from 41% from the previous year. The report observes that while users are open to trying this service, they don’t stick with it. The report also concludes that unless Apple Pay finds another capability besides ubiquity, it will continue to lose it’s user base.
Therefore, even a mighty company such as Apple cannot hold end users interest. It’s not Apple’s fault…its the nature of B2C FinTech innovation.
Simply put:
B2C (challenges) = f (mindset) + f (customer preferences)
Therefore, before companies jump on the B2C FinTech train, please understand your customer and do thorough market research. Neither pace of launch nor size of investment (or prepaid marketing) can hold up to customer preference and might. At least, this is the case for B2C space.
Therefore, FinTech continues to face a dilemma when it comes to B2C – to surrender or to keep trying. In the name of innovation, keep moving but learn from those who’ve treaded before.
A slick(er) user interface can not make up for lack of functionality. Substance beats superficial.
tyagifin 