5 Ways to Grow and Build Trust in Finance Business

We all know of the financial crisis in 2007. The one that sent shockwaves in the financial business, not only in the US but all over the world. Consequently, consumer trust eroded and that is not yet recoverable - even today.

With technology advancing at a rapid pace and compounded by the fact that consumer trust is still missing in the traditional form of financial institutions, we have only seen the rising case of the fintech revolution.

As said by the Edelman Trust Barometer Financial Services Report, the trust factor has made significant progress by almost 8 % than what it was in 2012.

Present-day financial institutions will cease to exist without a base of loyal clients but trust is missing from the consumers more so for the online businesses.

As these companies drive towards building consumer trust, we will provide insights on some of the factors that build trust in the financial services companies.

Don't forget to check out: An Introduction to Salesforce Consumer Goods Cloud

5 Factors for Building Trust for the Financial Services

1. Stay Ahead of the Technology Curve

The digital landscape has changed the world in an entirely different way.

The key drivers for any customer interactions are now - personalized services and enhanced customer experience.

Technology facilitates this interaction. However, traditional financial services companies are slow to adapt to the latest technologies. The gap that is left is filled aptly by the technology giants, providing equivalent services.

Moreover, the financial services companies have only a few choices - get disrupted or disrupt. The startups and the fintech companies are competing in the space and enticing the customer base. You may refer to the new trends to understand the implications of disruptions, in the Deloitte report in a wide range of industries - banking, insurance, investment management, and others.

2. Understanding the Millennials

There is a huge demographic shift, all over the world and more in the US, owing to the millennials. Unfortunately, the millennial generation is said to be less trustworthy.

With this in mind, financial institutions must adopt a digital-first mindset. This is so very essential for their survival. They must prioritize on two factors - customer acquisition and consumer experience. However, it is not easy to recover in the trust factor, but following these factors lay down the road for future success for your business - in building trust and loyal customers.

Millennials form a generation of DIY. 75 % among the millennial consumers prefer to resolve their customer service issues, on their own. However, for financial institutions, it becomes a difficult task to handle the complexity of products. Some of the ways to align with this mindset are:

Use guided selling tech for providing advice and recommendations.
Improve mobile apps to allow easier access to financial statements.
Improve security with tech.
Use technology for serving notifications for payments, bills, and others.

3. Delivering with Technology

User experience is of utmost importance while choosing the right financial service providers. Moreover, the choice of these financial service providers depends on quite a lot on the technology adopted.

User experience is of utmost importance while choosing the right financial service providers. Moreover, the choice of these financial service providers depends on quite a lot on the technology adopted.

Artificial Intelligence (AI) is one of the technologies which plays a significant role in marketing efforts. Retailers can adopt game-changing technologies such as AI helps in marketing automation with personalized interactions.

Furthermore, AI enables businesses to understand consumer behavior patterns for a better understanding of which of the marketing strategies the email subscribers will adopt. It becomes essential also to send personalized correspondences to the clients based on their preferences.

Financial Institutions may also adopt one of the best CRM for financial services from companies such as Salesforce. This software builds trusted relationships from families and relationships - from anywhere.

A Financial services Cloud is one of the many products for connecting channels, geographies, and lines of businesses. It builds trust and loyalty among the clients by putting customers as the central point of every interaction.

This kind of best CRM for the financial services when offered for the banking sector, provides proactive services across every channel. On the other hand, an extraordinary level of trust can be built for unified experience in the insurance sector.

4. Instant Response

One of the key strategies for building trust is an instant response to customer queries - in the shortest possible time. Customers use social media for channeling issues.

As per a survey, SocialMediaToday, 67 % of today’s consumers seek social media from the likes of Facebook and Twitter for the resolution of their issues.

Please refer to the infographics for valuable insights on instant response.

5. Transparency Matters

Lack of transparency is one of the critical factors for a consumer not choosing a financial institution. To gain trust, these companies must resort to transparency across all customer touchpoints.

First, you need to prove the trustworthiness of your business and allow the consumers to understand how you achieve that and what your plans are. Here are some of the means of achieving your goal of - trustworthiness:

Listening to consumers by sending surveys and questionnaires.
Use Social Proof as users trust their peers more than the pros.
Offer periodic content through emails and blog posts.

Check out another amazing blog by AnavClouds here: How Salesforce CRM Can Improve Business Performance?

Conclusion

The consumers are still missing the factor of trustworthiness since the worldwide financial markets crashed in 2007. The traditional businesses have failed to adopt the digital mindset, resulting in fintech revolution,

Today’s consumers, comprising mostly millennials, prefer a personalized interaction with your brand. The millennial generation prefers a human element in their business transactions and not just a faceless corporation. So, alignment with such desires is equivalent to building trust in your brand.

Technology also plays a critical role while choosing a financial service provider. Advanced technologies such as CRM and AI play an important role in trust-building for traditional financial institutions and staying ahead of startups and other fintech companies like AnavClouds Software.

Two other factors that help to foster trust in the minds of consumers are those of transparency of services rendered and instant response.