There’s no shortage of reasons why adoption rates are a pivotal metric for FinTech providers. On one hand, higher FinTech adoption rate demonstrates that clients are finding value in the offering and that they’re more likely to be loyal, long-term adopters. Better adoption rates also make FinTech providers a more attractive partner to banks and other businesses while helping to secure more investor funding for future growth.
While many variables can factor into what makes or breaks FinTech adoption rates, one of the areas that is often overlooked is the onboarding experience. Done right, the client onboarding experience can help contribute to higher FinTech adoption rates on day one. But when the onboarding experience falls short of client expectations and creates more stress than excitement, FinTech adoption rates can suffer as a result.
Let’s take a deeper dive into the negative repercussions a poor onboarding experience can have.
Clients Can Abandon Ship Mid-Onboarding
In the software industry, statistics show that poor onboarding can lead to a 40-60% user drop off rate after sign-up. When it comes to why clients exit the onboarding process early, it often comes back to the onboarding process being too slow or too complicated.
Consider an onboarding process where FinTech clients have to toggle between multiple platforms. While clients have to spend time jumping from one platform to the next, they also have an inconsistent experience that can create confusion and lack transparency. Without a holistic project management tool to reference, it’s more likely that clients will receive repetitive information requests, have difficulty seeing their project progress, and encounter other frustrations that may cause them to drop out.
Clients Can Churn Shortly After Onboarding
Even if clients manage to complete a difficult client onboarding process, it doesn’t tend to bode well for the long-term. Frustrations and dissatisfaction in this initial phase color the entire relationship and make clients more inclined to churn in the first 90 days after onboarding.
In a highly regulated industry like FinTech, trust is especially critical between clients and providers. Clients need to trust that providers are equipped to handle their data securely and that they are in compliance with industry regulations. If a FinTech provider fails to communicate its data security measures upfront or if there are uncertainties about data protection during migration, it creates a break in trust. This leaves clients more hesitant to use the FinTech service for financial transactions and more inclined to explore other providers that offer similar services.
A Competitive Disadvantage for Providers
In a Gartner Trend Insight Report, 80% of organizations said they expected to compete primarily on customer experience. Putting this in the context of the FinTech industry — a highly competitive space with a growing number of providers — clients have the luxury to choose a provider that offers a seamless, user-friendly experience from start to finish.
While a subpar onboarding experience affects immediate client-provider relationships, it also means that providers can’t advertise their ease of implementation as an advantage. Without a means to back up the ease and convenience of getting started with a solution, FinTech providers can struggle to differentiate themselves from competitors with a good client experience and ultimately lose out on business to them.
Negative Feedback Can Dissuade Prospects
Modern business decisions are greatly influenced by reviews and recommendations. As is the case in most industries, FinTech providers rely on positive feedback and referrals to grow their client base and increase their FinTech adoption rate. Negative reviews can quickly undermine positive feedback and cause providers to miss out on opportunities to acquire new clients.
When clients share their negative onboarding experience with others — whether online or through word-of-mouth — potential clients will take heed. If a potential client learns, for instance, that the onboarding process lacks accessible and responsive support, it can signal to prospective clients that the provider doesn’t value the client experience. This can make prospects less inclined to invest their time and services in the provider.
Achieving higher FinTech adoption rates starts with a good onboarding process. Setuply’s client onboarding automation platform creates a seamless experience that is predictable and scalable. You’ll have the tools to make the onboarding process efficient and enjoyable for your clients, and continue to deliver this level of service as your client base grows. Your journey to better client onboarding starts with a Setuply demo.