As India moves to a less cash dependent state, the rise of digital payments took on a high growth trajectory.
The increased need for convenience coupled with the increased technology adoption (mobile phone subscriptions in India crossed 1bn mark in 2016, of which an estimated 371mn users subscribe to mobile internet) have all been factors in the overall rise of digital payment options.
Along the road however, there are several challenges that the industry faces and needs to overcome, and this is where the importance of understanding your customer, their needs and challenges, coupled with the right analytics becomes an important success factor.
Cash having been the dominant payment mode for Indians for such a long time, the transition to a digital mode is naturally accompanied by an inertia. Consumers, rightly so, have questions ranging from security to transparency of charges, and more recently privacy.
It is only through in-depth and ongoing consumer research that new-age firms can hope to keep up with the fast-evolving consumers. Data analysis is becoming highly important since businesses are becoming fast-paced and tech-driven. The analysis provides a company with meaningful consumer insights that can help a firm take strategic decisions.
The key areas where effective data analysis is the most useful is when it comes to predict consumer trends and behavior. Understanding consumer behavior pattern is of prime importance to a fintech firm since that helps in delivering better customer experience. It drives effective decision making and in turn increases business productivity.
As the fintech industry is growing rapidly in India, ongoing user research should be a firm’s key strategy for localization. Along with data analytics, in-depth research of users through face-to-face meetings is a very important tool that businesses should start adopting. The process is to understand the user’s daily life cycle, human relationship, society, culture, etc. which the data analytics can’t reach. Close contact user studies are also very useful in creating the right plan, UI/ UX and feature designs for consumers. It is critical for a business to have a dedicated team to understand the usage and attitude of consumers since face-to-face meetings create a much deeper understanding of the barriers to adoption as well as the usage patterns.
It is only the data analytics at the end of all this research, that can help to translate the findings of the research into actual continuous product improvement. In today’s aggressive business environment, a business can only make steady progress if it is powered by a strong data analytics engine.
Strong data analytics have a direct impact on the business metrics – optimizing revenue, cutting costs, design of new product offerings – which in turn improves both top line and bottom line revenues for an organization. In a country like India, where there is a mix of legacy systems and modern systems, the challenge of data consolidation is immense. Analytics help the business make better decisions every day.