How FinTechs Can Optimise Originations for Customer Success
The financial technology (FinTech) sector is one of the big success stories of the UK startup ecosystem, with the number of firms projected to double by 2030. FinTechs have disrupted financial services by creatively serving consumers who were previously underserved — and increasing choice, access and quality. They’ve led the way with personalised, engaging and slick user experiences that have become the standard for modern banking apps; the diversification of payments; and groundbreaking customer services operations focused on resolving customer queries 24/7.
As the decisive first step in the customer journey, the origination stage encompasses everything from the moment a potential customer becomes aware of your brand to their initial application for a product or service. For growth-hungry FinTechs, optimising this stage of the customer journey helps:
- Ensure you reach the right consumers with the most appropriate products
- Deliver a smooth digital customer experience (DCX)
- Give business leaders confidence each pound of marketing spend is working as hard as possible
Why optimising your originations strategy matters in uncertain times
The geopolitical turmoil and economic uncertainty that have characterised the post-COVID era have impacted funding for the FinTech sector globally. In the UK, investment was down 34% in 2023 to £9.75bn (which is still more funding than FinTechs in France, Germany, China, India, Brazil and Canada receive combined). In a period of late- and early-stage FinTech funding decline, FinTechs need to focus on their customer originations strategies.
The number of ads a consumer sees in a day is hotly debated, but what marketing and advertising experts do agree on is just a small percentage are likely to be relevant. To cut through the noise, it’s essential FinTechs master the ‘zero moment of truth’ (as coined by Google): the moment a consumer begins to research a product or service online before making a purchase decision. With consumers deciding on a product or service within three to seven seconds of encountering it, a great originations strategy moves the odds in your favour by helping ensure you efficiently target and engage relevant customer groups — and create a great first impression. Optimising this part of the customer experience (CX) can help build a sustainable customer base and lower acquisition costs, potentially extending a start-up’s runway during challenging economic times.
A good CX that elicits a positive impact at the origination stage often includes: arming consumers with relevant content; engaging with target audiences on their preferred channels; and ensuring you present consumers with rates/offers they actually qualify for and are appropriate.
Key considerations for optimising FinTech originations
A study by Accenture revealed 91% of consumers are more likely to choose brands that provide relevant offers and recommendations. Why is this important? Because at least 30% of consumers aren’t familiar enough with their options to know where to start when looking for financial products.
FinTechs can enhance their origination strategies by focusing on their customers and working out how to:
1. Meet them where they are
Consumers engage with brands across an ever-expanding number of platforms — so your acquisition strategies must reflect this.
Take your goals, customer personas and analytics, and identify touch points (digital and physical) at the awareness and consideration stages. Then, map your customer journey into a visual guide that helps you understand how customers first interact with your business. To make this activity more robust (and eliminate draining campaign spend), use geodemographic insights from solutions like CAMEO and third-party market intelligence that provides authentic insights that help you understand prospects, shape messaging and plot how to reach consumers at the right time on the right channel in the right format. Channels can include everything from Reddit to video on demand to more traditional touch points like direct mail or digital out-of-home advertising (DOOH).
As you move into execution, your content, channel and paid media plans should align as you seek to engage consumers. For example, research has shown educational content can boost purchase intent by a staggering 131%, demonstrating the power of tailoring content and formats to match customer needs.
TikTok, for instance, has captured the attention of Gen Z and Millennials. At the time of writing, 206 million posts on TikTok were tagged ‘financial advice,’ illustrating its potential audience size. Our insights into financial and credit education highlight the benefit of improving consumers’ financial confidence and the opportunity for providers to take the lead in this space by:
- Creating authoritative and informative content
- Leveraging relevant influencers and partners
- Using paid promotions to increase reach and engagement
Meanwhile, other customer segments may prefer longer-form content or information hubs that feature a mix of explainer videos or how-to guides.
A smooth-running marketing function better ensures a consistent stream of relevant and engaging content on the platforms your audience frequents (increasing reach through paid media), helping grow brand visibility and recognition.
2. Personalisation is key
Modern consumers demand tailored experiences, so generic messaging is a surefire way to lose their attention. To truly connect with your audience, deliver personalised content and offers that align with their financial needs and goals. This can be done by leveraging data analytics to gain deep insights into your customers — and subsequently creating highly targeted campaigns.
Geosegmentation data solutions, such as CAMEO, can segment consumer groups and help you reach the right people with the right message at the right time. This not only saves consumers time and frustration in their searches but builds trust and loyalty, enhancing the overall customer experience.
Remember, personalisation is non-negotiable. As the TransUnion Consumer Pulse Survey highlights, a significant 66% of consumers refuse to engage with businesses that fail to deliver personalised content.
3. Friction-right partner integrations
Price comparison websites are a critical marketplace for FinTechs looking to acquire new customers. To capitalise on the opportunity, you need to streamline the entire process. Only by eliminating friction in the customer journey can you truly maximise conversions.
Here's how:
- Offer appropriate deals: Present enticing pre-approved offers that grab attention and boost conversion rates.
- Transparency is crucial: Clearly showcase details like price, credit limits and approval likelihood. Use straightforward and easy-to-understand language to let customers know exactly what they're getting up front. TransUnion consumer research found 42% of consumers do not thoroughly read the terms and conditions (if at all) for a new credit product, and nearly a third (31%) had low levels of confidence with understanding the legal commitments explained in T&Cs. In the context of the FCA’s Consumer Duty, lenders need to focus on getting this part of the customer experience right and creating trust from the start. The value add is this effort could convert a new customer into a loyal one.
- Seamless transitions: No one enjoys re-entering information. Optimise the handoff from partner price comparison websites to your platform, ensuring a smooth, friction-right experience. By eliminating unnecessary steps, you prevent drop-offs and keep customers engaged throughout the application process.
By prioritising these elements, you can transform price comparison websites from lead generators to conversion powerhouses.
4. Streamline the digital journey
The financial industry is rapidly evolving — with digital transformation at its core. Many FinTechs rely on online interactions — whose increasing volumes necessitate a holistic approach to originations.
Accordingly, FinTechs must prioritise seamless, secure and customer-centric digital experiences to stay competitive. To achieve this, it’s fundamental to:
- Eliminate friction: Streamline the digital journey from initial offer to final approval. Options to improve convenience and the experience include non-intrusive fraud and identity insights, and eligibility and pre-approved offers.
- Prioritise security: Protect sensitive customer data at every stage.
- Create inclusive experiences: Design the digital process to be suitable for a wide range of customers.
- Invest in affordability assessments: Look to drive financial inclusion and increase opportunities for converting more good customers with affordability solutions. Utilise Open Banking data to inform a customer’s eligibility for credit at the start of their credit journey. This way, you can provide a better match between what they can truly afford and credit available — delivering a win-win for them and you. To increase approval rates, incorporate advanced affordability solutions like trended credit data that assess a customer's ability to repay.
By investing in solutions and technology that enable a customer-centric approach right at the start of the journey, FinTechs can create superior originations experiences that drive satisfaction, loyalty and business growth.
5. Responsible, merchant-led originations
The rise of buy now, pay later (BNPL) services has transformed the retail and FinTech banking landscape. However, with this growth comes the responsibility to ensure consumers can afford their purchases.
To maintain a positive customer experience while upholding responsible lending practices, a delicate balance must be struck. On one hand, the checkout process should be seamless and friction-right to encourage conversions. On the other hand, it's essential to implement thorough eligibility checks without deterring customers.
By prioritising responsible lending and partnering with merchants, BNPL providers can build trust with consumers and contribute to a sustainable financial ecosystem.
TransUnion: Your partner in cultivating trust
TransUnion genuinely understands the challenges and opportunities facing the FinTech industry. We offer a suite of solutions that can assist in your pursuit of crafting holistic origination strategies that align with your business goals and regulatory requirements.
To take your FinTech customer experience (at the originations stage) to the next level, tap into:
- Identity verification and fraud prevention help ensure you're onboarding the right customers while minimising risk.
- Credit risk assessment and affordability tools equip you to make better-informed decisions about creditworthiness and affordability while promoting responsible lending practices.
- Consumer segmentation and targeting solutions enable you to hyper-personalise your approach and reach the most promising prospects.
A well-executed digital customer journey is more than just convenient; it's a strategic advantage that can set businesses apart in a fiercely competitive market. By partnering with TransUnion, you can create trustworthy, friction-right customer journeys from the very beginning — fostering stronger relationships and achieving sustainable growth.
To learn more about how to capitalise on FinTech trends in customer experience, download our eBook — Begin new relationships, deepen existing ones — now.
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