In today’s fast-paced digital landscape, customer trust and engagement are critical to the success of fintech and insurtech businesses.
Consumers have become more discerning. They expect top-tier products, yes. But they also demand personalised, transparent, secure, consistent, and high-quality communication. The ability to communicate effectively has become a key differentiator for businesses aiming to build long-term customer relationships.
The importance of communication in fintech and insurtech
Effective communication is no longer a ‘nice-to-have’ but a necessity across industries. Customers expect companies to communicate with them in ways that feel personal and relevant, particularly when it comes to sensitive topics like financial services or insurance policies.
The Connected Consumer report by Esendex surveyed 1,000 consumers across the UK and Ireland. It revealed that, while many are willing to trust communications from businesses, the trust is conditional. It requires consistent effort to maintain.
According to the report, over half of respondents trust messages like renewal reminders and tailored offers from financial and insurance companies. However, a striking 80% said they would stop using a business altogether if they were dissatisfied with the quality of communication.
This number jumps to 85% among younger, more digitally engaged consumers aged 18 to 44, emphasising the critical importance of getting communication right.
Leaders must understand that communication goes beyond delivering information – it’s a strategic tool for engaging customers. In a world where consumers are bombarded with messaging, the quality, timing, and relevance of communication significantly affects brand perception.
How leaders can improve their communication strategy
Today, there is an increased expectation of personalised communication. A remarkable 90% of respondents said that personalisation encourages them to take action at least some of the time, with 30% reporting they do so all or most of the time. This shows that tailored messages—whether about policy renewals, financial advice, or special offers—resonate more deeply with customers and can drive meaningful engagement. However, fintech and insurtech companies must be cautious about how they handle personal data.
Consumers are generally more willing to share details to receive personalised offers. However, in turn, they expect their data to be handled responsibly and securely. Leaders must be transparent about how customer information is used and stored, ensuring that ethical data practices are in place to protect privacy and build confidence.
Fintech and insurtech businesses are able to enhance communication through mobile channels, and with consumers increasingly reliant on mobile devices, it is important for businesses to meet customers where they are.
Mobile communications, whether via SMS, app notifications, or mobile-friendly emails, should be concise, timely, and easy to engage with. Esendex’s research reveals that many customers value receiving mobile communications, which can be a powerful tool when leveraged correctly.
Yet, despite the benefits, the risks of getting it wrong are high. As the research highlights, the majority of consumers are quick to leave a company if communication falters, particularly in younger age groups. Poorly timed, irrelevant, or unclear messages can not only cause frustration, but can lead to customers losing trust and moving elsewhere.
Fintech and insurtech leaders must focus on delivering clear, well-timed messages that add value to the customer experience, rather than cluttering inboxes with irrelevant information.
Building trust and loyalty through thoughtful communication
At a time when competition in fintech and insurtech is fierce, businesses must look to communication as a strategic advantage.
To stay ahead, fintech and insurtech leaders need to prioritise the quality of their communications. This means more than just sending out messages. It involves understanding customer needs, personalising interactions, and handling data responsibly. Mobile channels are particularly important as they become a primary touchpoint for many consumers, and businesses must ensure that these interactions are seamless and valuable.
In the end, communication is not just about providing information; it’s about building relationships. Trust, once earned, can translate into long-term loyalty, but it requires effort, consistency, and a commitment to understanding and meeting customer expectations.
By investing in thoughtful communication strategies, fintech and insurtech businesses can enhance their customer relationships and strengthen their position in a competitive market.
- Fintech & Insurtech
