An aspiring business struggles both to maintain a customer base and not fall into a fraud trap. Reports claim that an average U.S. FinTech goes through a loss of around fifty-one million dollars every year. These are just rough estimations. There is tangible evidence to prove that the losses are even more than the estimation.
Some frauds are not registered. A lot of frauds go beyond the black and white of a balance sheet. And thus, it is difficult to come across the real figures for the loss from these frauds.
The concerning point is that there are multiple ways a fraud can creep into a FinTech. In a fighting mechanism, FinTechs try to impose more restrictions. They impose more friction on their account holders.
These recurring frauds have taken a toll on the FinTechs. The FinTech who are cautious is imposing as many frictions as the FinTechs who are carefree. This over-cautious attitude of the FinTechs sometimes costs them their reputation.
Due to increased security and friction, customers find it difficult to make transactions. They face trouble moving their money in and out of their accounts. And even though they complain about it, FinTechs realize that they can’t remove these restrictions.
All these experiences force the customers to have a poor review of FinTech. Poor user experience is a very common friction that FinTechs have as a roadblock in their path to success. The friction makes it difficult for the users to deposit and withdraw or pay in their accounts in a FinTech.
All the FinTechs struggling with fraud face this problem. Although FinTechs do try to make the most of their abilities to provide a frictionless user experience. Most FinTechs plan to invest in instant offerings to improve user experience.
FinTechs provide the option of investing in instant cryptocurrency wallet deposits. There is also an option of investment in in-store cardless cash withdrawal. These are some top ideas for FinTech innovation wish list implementation.