At last week’s Fintech Africa Summit, a stark observation emerged: too few decisions in Fintech are being made with the consumer in mind.

1. The IT-Compliance Driven Approach: Pros and Cons
2. Finding the Right Balance
3. Conclusion: The Future is Customer-Centric

Panelists highlighted a trend where data management and technology choices are primarily delegated to teams of IT professionals and regulatory compliance officers, with little input from those most impacted: the customers themselves.

This raises a critical question: Is the current fintech trajectory focused on the right things?

While leveraging technology and ensuring regulatory compliance are crucial aspects, what about the human element – the end user whose experience shapes the success of any financial product?

The IT-Compliance Driven Approach: Pros and Cons

There’s no denying the importance of a strong IT infrastructure and robust regulatory compliance in financial services.

Here’s why:

• Security and Stability: IT departments safeguard sensitive customer data and ensure smooth operation of banking systems. This is vital in preventing fraud and maintaining trust.
• Reduced Risk: Regulatory compliance officers play a vital role in mitigating risk. Their expertise ensures adherence to financial regulations, safeguarding both institutions and consumers.

However, an overemphasis on these aspects can lead to:

• Tech-driven Products over Customer Needs: Features prioritized by IT may not align with what customers actually want or need. While tech teams understand the technical landscape and can implement solutions swiftly, they can cause delays due to a lack of support and budget.
• Friction in the User Experience: Compliance requirements can result in clunky interfaces and cumbersome processes, frustrating customers..
• Missed Opportunities: Customer insights are a goldmine for innovation. Without considering their wants and needs, businesses risk missing out on developing products and services that truly resonate.

Finding the Right Balance

So, how can we achieve a more balanced approach?

Here are some suggestions:

• Collaboration is Key: Fostering collaboration between IT, compliance, and customer experience teams is essential. This ensures that technical and regulatory requirements are met while delivering a smooth user experience.
• Integrate User Research: Incorporate user research into every stage of the development process. Conduct surveys, user testing sessions, and gather feedback to understand customer pain points and desired functionalities.
• Embrace Design Thinking: Design thinking methodologies prioritize user empathy. By fostering collaboration between IT, compliance, and design teams, businesses can create solutions that are both innovative and user-friendly.
• Data-Driven Decisions, but with a Human Touch: Leverage data analytics to understand customer behaviour, but don’t let it overshadow the importance of qualitative user research.

Conclusion: The Future is Customer-Centric

The Fintech Africa Summit has shone a light on a critical issue. The future of finance belongs to those who put the people back at the centre.

Let’s use this as an opportunity to ensure that the future of fintech is driven not just by technology and regulations, but also by the very people it aims to serve – the consumers.

By prioritizing the customer and designing with their needs in mind, Fintechs and traditional banks alike can build trust, loyalty, and ultimately, achieve long-term success.