Building Fintech Trust Through Translation
More than 60% of the world’s consumers have used fintech. That’s a significant increase from the 33% back in 2017. And as the world continues to use more new technology, the percentage of consumers who rely on fintech will go up.
But there’s a paradox in the use of fintech. While more and more people use it, consumers still have a deep mistrust of fintech. Why do people mistrust fintech? What are the root causes of that mistrust and how can translation services help remedy that?
What Is Fintech
Fintech, short for “financial technology”, is any piece of technology used to enhance financial services. It covers a lot of things. These technologies can serve the interest of the consumers and the financial institutions. Examples of fintech include:
- Mobile banking
- Investment apps
There are many other types of fintech. Basically, any piece of technology that deals with finances can be considered fintech. The thing about the fintech industry is that it’s big and it’s growing bigger each year.
Fintech During the Pandemic
Fintech growth was accelerated by the pandemic which forced a lot of people to use fintech for the first time.
Data suggests that digital adoption in the United States made the equivalent advancement of five years in just eight weeks. The cause for that increased adoption might be less than auspicious but it is still a huge gain for fintech. The numbers also show that there was a 4-5% drop in global cash transactions during the height of the pandemic.
With the pandemic dying down, people are going back to using cash but the use of fintech will continue to increase.
Why People Distrust Fintech
With the continued increase in the use of fintech, there is one curious fact. Consumers, for the most part, don’t really trust it.
Yes, that’s right. Consumers have a mistrust of financial technology. In fact, only 27% of users say that they have more trust in fintech than banks. So, why do people distrust fintech? How can that mistrust disappear?
There are a lot of reasons why people distrust fintech. It’s important to go through those reasons.
Fintech Is New
Well, fintech isn’t really new. It’s been around for years but for some people, it is a new development, and people mistrust what’s new.
People Still Trust Banks
As mentioned earlier, people mistrust fintech because it is new and in the same sense, people trust banks because they are old and established. It might not make sense when you analyze it but that’s how people feel. Even as fintech solutions are increasingly regulated and reliable, people still have a deep mistrust.
People are also mistrustful of how fintech apps use their data. This problem is not limited to fintech but to other apps as well. There is a good reason why people distrust companies handling their data and it is just right to take precautions but this is holding back the development of fintech.
Using Translation to Build Fintech Trust
One way of overcoming the mistrust of fintech is through translation and localization services. Based on research 76% of consumers are likelier to try a product or a service if the seller or the provider is using their language. The solution to the trust problem is quite straightforward then. Speak the language of the consumers and earn their trust.
For fintech companies trying to venture into new markets, it is not just about translating their content into the local language. They should also do research on the laws concerning financial services.
Fintech companies can create a translation strategy that they can use whenever they are expanding into a new market. Here are some of the most important things that should be included in that strategy:
- Compliance with the regulatory bodies and laws of the target market.
- National characteristics of people in the market that are being targeted.
- Demographics of the target market.
- Purchasing behavior
With these factors in mind, a fintech company can start working with a financial translation services provider to localize its content. The aim is to use and adapt to the language of the market so that the locals will trust the fintech more.
The success of this strategy will depend largely on the financial translation services provider and localization experts that the fintech will work with. Ideally, the translators who will be handling the project should be from the new market being targeted. The fintech company must pick a financial translation services provider that has worked on something similar in the past.
It’s understandable if consumers are hesitant to trust fintech right away. We’re talking about money here after all. That’s why fintech companies must work on winning their trust. By using translation as a means to make people listen to them, they can gain people’s trust and confidence.