NBFCs are all about customer satisfaction. Here’s how.

The Indian financial sector entered and continued into 2023 on a firmer footing, compared to previous years. While the retail sector is expected to remain profitable on the back of rising interest rates, retail banks are looking at sharpening their ability to bring hyper-personalized products and experiences. NBFCs are continually working on striking the right mix of product functionalities that boost customer engagement

Your guide to the changes brought in by NBFCs 

• Focus on diversification and innovation to partner with customers across their financial journeys
• Tech capabilities and partnerships to reach customers in the last mile in a faster, safer, and easier manner 
• Customer data platform or database to get a deeper understanding of customer behavior 

2022 posits that the retail banking focus is driven by the need to deliver better customer experiences to uncover newer revenue streams. This necessitates a never-ending focus on the following aspects.

Pushing customer experience to the fore

More and more customers are switching finance institutions when they encounter offerings and experiences not being tailored to their unique needs. Given the plethora of options they find, gaining and retaining customer loyalty requires a customer-focused strategy, which takes into account their diverse needs, the background from which they come, and prevalent pain points in the segment.  

Segmenting and specializing as an effective strategy 

Fintechs specializing in particular customer segments are ahead of their competitors simply as a result of the focus they put on their customers and their varying requirements. They work with a specializing – segmenting the target audience to a granular level approach. That is how they achieve the building of products that closely fit the segment’s needs. For example, whether you are new to credit, newly salaried, self-employed, or salaried, it won’t be hard for you to find a fintech company focusing on the particular customer segment that you would fall into. 

The way forward

The meteoric rise in the popularity of new-age fintech has compelled banks to rethink their customer-centric strategy and Swifty digitize legacy systems. NBFCs and fintech like SmartCoin continue to win through an understanding of diverse customer preferences, the ability to map them to product features, and a readiness to adapt their tech systems to changing preferences. To stay competitive in such a market, the good part is that big traditional financial institutions are exploring partnerships with these new-age players to bring the best of both worlds to banking.