Can FinTech Deliver a Customer-Centric Experience? An Abstract

Abstract

The banking industry is undergoing a paradigm change in the form of financial innovation and enabling technology. The advent of Financial Technology, or FinTech, in banking has changed the landscape of firm-customer interactions and delivery of unique customer experiences. Revolutionary FinTech firms are using technology to design and offer novel services that proactively meet consumer needs of financial services in direct and valuable ways (Gomber et al. 2018). The disruptive innovation triggered by technology has pitted incumbent banks against the agile new entrants, such as challenger or digital-only banks and FinTech firms. Crucially, customer experience has emerged as the new competitive front for financial services. Banks can no longer compete on product, price or the number of physical branches they have. What wins customer over is innovative products, proactive approach, and convenience in interacting via wide variety of channels (EY Banking Survey 2016). Despite widespread media and industry interest in FinTechs’ increasing ability to provide superior customer experience, academic research on this issue is still in an embryonic stage. This research seeks to understand how FinTech firms are developing greater customer orientation by delivering superior customer experiences. Does FinTech-driven experience promote greater consumer trust and satisfaction, and does it have a positive impact on word-of-mouth? This research aims to inform the industry and marketing professionals in understanding how the acceptance of technology by customers is influencing their customer experience. Our research methodology aims to explore the perceptions of customers of various large banks through a survey questionnaire. The survey consist of statements related to the factors affecting acceptance of online banking (TAM), online consumer experience antecedents and statements related to the interaction between service provide and customers via technology. Findings will provide insights into how banks can formulate successful strategies to address emerging competitive threats. Our policy contribution is to inform the industry and marketing professionals in understanding how the acceptance of technology by customers is influencing their customer experience. This research joins ongoing regulatory dialogues (e.g. Australian Securities and Investment Commission, 2018; Chartered Banker Institute, 2018), which assert that despite an increasingly important role of technology, service staff still plays a key role in rendering superior customer experience in banking. This study aims to conduct a detailed analysis of the dynamic role played by employee- customer (Branch-level) and technology-customer (FinTech) interfaces. Are they complements or substitutes? Our findings will provide insights into how banks can formulate successful strategies to address emerging competitive threats.