In face of rising app glitches and cyber insecurity, many people are gradually abandoning the use of apps. However, in the wake of the covid-19 pandemic, there was a rise in the use of FinTech apps. Studies reported that the use of FinTech apps for financial transactions rose to 13% and the volume of usage went up to 11%, signifying industry growth.Read more about How To Moreover, the need to always use apps for everything financial transaction led to the rise of new FinTechs. Hence, users were faced with numerous options, which accounted for the massive dumping of FinTech apps at any perceived dissatisfaction. Many FinTechs suffered abandonment due to this. Furthermore, during the outbreak of the pandemic, users spent more time on their apps, but in the past 20 months, that amount has decreased. For instance, in 2020, users were willing to spend 26 minutes onboarding to a FinTech app. Presently, in 2022, that number has been cut by eight minutes to 18 minutes 53 seconds total before a client drops out of the process for good. In this article, I address how startups can reduce this abandonment.
Let Users Know That Their Data Are Highly Protected
The rising news on cybersecurity attacks has been responsible for FinTech app abandonment. It is important to note that the nature of data protection is at the heart of the user’s interest. The reality of the matter is that there is a huge amount of information requested by FinTechs, which makes consumers remain hyper-vigilant about their security and correctly so.Sign up for the Connect Nigeria daily newsletter Studies have shown that the banking industry experienced a 1,318% year-on-year surge in cybersecurity attacks in the first half of 2021 alone. Your ability to guarantee high data protection in your startup can help increase adoption. Therefore, using international standard protection tools of AI and ML is pivotal.
Increase Information On App
Another factor that has affected the decline in FinTech app usage is a lack of information. There are many apps today that we do not know their functionalities and purposes. Many people own FinTech apps on their phones but hardly use them due to a lack of information. Further, studies have shown that this unbanked crisis affects over 1.7 billion adults worldwide. Although this is not all down to FinTech providers, overtly strict processes contribute to keeping more and more people out of the financial system. Therefore, as a FinTech company providing down-to-earth, no-grey-area information to people through various platforms and strategies can increase adoption.
Simplify UX and UI
Studies have also found that un-simplified and complicated processes have discouraged the use of FinTech apps.Register to attend the Connect Nigeria Business MixerAccording to Finextra, complicated and complex applications can affect the likelihood of completing applications too. This complicated process could range from poor UX (user experience) design or overly strict AML/KYC procedures. Many users reported this as one of the reasons for leaving the onboarding process.
Build Trust From The Outset
Another way to increasing adoption and reduce the abandonment of FinTech apps is to build a transparent and trustable process from the outset. As soon as one picks your app, it should inspire confidence and trust in the whole process. The reality of the massive abandonment of apps is that users simply change their minds during the process. Unclear, misleading, or extensive onboarding processes can leave new clients apprehensive and doubtful of the product or distrusting of how it works, leading to an increased drop-off rate.Featured Image Source: International BankerGot a suggestion? Contact us: editor@connectnigeria.com
