In 2018, a concerning 60% of consumers in Sweden abandoned their financial applications. What is even more worrying is that this number has been increasing globally over the past few years. For example in the UK, the number of applicants who abandoned applications leapt from 40% in 2016 to 56% in 2018.
Brand loyalty is decreasing as consumers show a willingness to jump ship in search of the easiest application process. Established financial service institutions can no longer rely solely on consumer trust in an industry that seems to be disrupted daily by the latest tech solutions from challengers and start-ups.
At Instantor we want to contribute to a more inclusive and fair financing market. We do this by making people's financial lives easier and helping organisations to understand their customers’ true financial capacity, using transactional data.
Our client, Lendify – Sweden’s largest marketplace for loans – wrote a great opinion article on how traditional credit assessments need to be updated. How new technology, like our AI credit predictor – Insight – can provide a more accurate and detailed risk analysis for lending organisations and be a force for a healthier lending market. Please enjoy a translated version by us that was originally published in Swedish by Realtid.se in October 2018.
What does it mean to be a part of something bigger? To us, it means working together as a team towards one mutual goal. In our case, that goal is to allow financial organisations to help more, at less risk.
On our quest towards financial inclusion, occasionally we encounter certain challenges – challenges that are sometimes resolved by the fact that we are such a diverse and multicultural team, and sometimes caused by it.
Our latest solution, Instant Access, gives you the power to analyse transactional data through PSD2. This data is used to digitalise credit risk processes – without requiring you to invest in any tech resources or spend any time on system integration. Moneyveo is the first lender in the Ukrainian market to use this solution and our very first partner in Ukraine.
We were asked to give a talk at Almi HQ in Stockholm, where a banking delegation was taking place with CEO’s of venture firms and startups from all over Europe. The idea was for us to represent a northern perspective of the tech-sector, with ‘digitalisation’ as the theme. Here at Instantor, we take pride in being a part of supporting the tech-community to grow, share knowledge and challenge one another. In other words, that was of course something we were happy to do.
On-boarding drop-out rates are rising significantly for financial service institutions. Banks are now losing 52% of their potential customers to application drop-out, an increase of 35% from two years ago. Consumers are increasingly frustrated with time-consuming, legacy processes and are willing to switch to challengers in their search for a streamlined, user-friendly experience. In fact, 43% of customers who had low satisfaction during new account opening indicated they will “definitely or probably” switch as a result.
Image Credit: Etienne Boulanger
As Financial Services processes continue to become digitised, one could almost be forgiven for expecting that more consumers would, therefore, complete the on-boarding process. Yet, drop-out rates are mounting as modern consumers demand easier online applications. This increase is spurred, in part, by how mobile technologies have raised consumer expectations, as users expect simplicity in design and experience.
"Today, technology is an integral part of our lives. Billions keep their smartphones glued to their sides, 24 hours a day. But, as technology becomes smarter, we will start to move beyond screens. A new paradigm will emerge, which will see our relationship with technology change forever."
Today, Instantor, the Swedish FinTech company making financial decisions easy, has launched a new global identity designed by Essen International. The new branding, described as Artificial Intelligence conceptualised into visual form, will be rolled out across our 25 markets in Europe, South and North America, and in Asia. As Instantor enters into an exciting phase, where we are expanding on all levels, from our team to our offerings, branding has never been more crucial.