Engaging Fintech Customers with Credit Education

Published: July 17, 2019 by Joe Talbott

Flush with success, fintechs of all sizes, from startups to digital units at traditional financial institutions, are making big investments in digital innovation and customer experience. Today’s customers have more choices and high expectations, and fintechs are actively seeking new ways to keep them engaged. The goal is to give users new reasons to interact with their platforms and brands, creating opportunities to build more profitable relationships.

The Value of Engagement

Offering interactive credit education tools that give customers actionable insights into their financial health is a promising tactic for fintechs seeking to deliver more valuable customer experiences—and opportunities to offer new products and services.

There’s an eager audience for financial education. Today’s consumers want to learn more about how to take control of their financial situation, especially millennials. According to a recent survey by Discover and Research Now, 83 percent of millennials are actively trying to improve their credit scores[1].

Consumers who get credit education with personalized and interactive credit planning tools through a fintech are motivated to log in to apps frequently to check their scores and to see how their efforts are paying off. Consumers with a high level of interaction on a credit education platform and a strong desire to improve their creditworthiness, can be in the perfect position to accept offers for balance transfers, debt consolidation loans and other products that save them money—and generate revenue for fintechs.

In addition, financial education and score monitoring help consumers improve their credit scores. Fintech customers who take advantage of these techniques can become more responsible credit users, and are better candidates for offers of credit from fintechs.

Credit Education Is a Two-Way Street

Improving engagement means creating active communication channels and more strategic customer interactions. For fintechs, financial education tools create an avenue to present credit solutions that are the right fit for the needs of customers at the right time.

Kaitlin is a good example. She’s a working professional in her early thirties who has relied on credit cards to pay for some of her living expenses, which has affected her credit score. She wants to pay off debt and save money for a down payment on a new car. She logs in to her fintech lender’s app at least twice a month to check her scores and mark her progress toward improving her credit score.

After a few months she’s made significant progress, and the fintech sends her an in-app prequalified offer for a credit card with zero fees for balance transfer, a lower rate, and a credit line increase. Kaitlin takes advantage of the offer, improving her credit score with the balance transfer and lower debt-to-credit ratio. Kaitlin also saves money with lower interest rates which she sets aside for a down payment. A month later, a representative calls her to discuss her credit score improvements, and her options for the best rates on auto loans.

The end result is a win-win for the customer and the fintech. Experian’s turnkey platform enables automated alerts and customized messages, and with Experian’s prequalified offer services, fintechs can offer customers targeted, personalized high-value credit products, aligned with their needs and credit profiles.

Today’s busy digital consumers value solutions that are relevant to their specific needs and accessible anytime. Credit and financial education services create an avenue for fintechs to engage customers and an opportunity to build a new revenue stream.

For more information about how Experian credit-education services can benefit your Fintech business and customers, download the e-book, How Credit Education Can Help Fintechs Grow.

[1] Discover.com: “The Current State of Consumer Credit Health”

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