Summer holidays, as everyone knows, can disrupt our rhythms and habits and lead us to buy things we’d never ordinarily buy (yes, we’re talking about that huge flamingo pool float you’ve probably already ordered).
And this summer we'll spend even more: according to a survey by N26, people are spending more money on eating out, travelling and shopping online, spurred on by the gradual reopenings in the coming weeks. But when packing your suitcase, it can be hard to keep track of all your expenses, since you’re so focused on the sun, fun and relaxation to come.
Thanks to mobile banking and personal finance apps, banks and fintech firms can stay connected with their customers and users even when they’re on holiday, providing valuable real-time information on what’s happening on their accounts.
How often do average bank customers find themselves presented with incomprehensible codes, mysterious acronyms and very little information on where and how they spent “that 1,000 euros” last week? As a result, banks get tons of calls after the summer holidays from people scratching their heads as they try to figure out just where those “mysterious” charges came from.
“Four out of five customers prefer to manage
their finances digitally rather than in person.”
(Source: JP Morgan, Digital Banking Survey)
For customers, disputed charges can be a source of frustration and stress. For banks, they represent just one more expense.
Not to mention all the time and labour involved in dealing with the disputes arising from unrecognized charges: for every $100 spent, the estimated loss amounts to at least $240 (source: Chargeback.com). In contrast, if these disputes are resolved quickly or, even better, avoided, it’s a big win for the customer relationship.
This summer, how can companies deepen trust and improve the customer experience? Here are some tips to keep in mind – they’ll matter to users and simultaneously help optimize your costs and resources via geolocation.
McKinsey estimates that the 15 biggest US banks spend around $3 billion annually on dispute management for credit and debit card payments. And between 50 and 100 million of these cases are reported each year. Making transactions clearer and more transparent not only saves around 40 percent of these costs but can also significantly improve customers’ views of their bank and build trust.
With the rise in summer spending made in unfamiliar places or contexts, giving users the ability to check their spending in real-time, with key data such as the location, shop or website of the transaction, increases the perception of security and boosts customer satisfaction. APIs like Woosmap with Merchant API are what make it possible to accurately identify up to 99% of transactions, with a database of over 25,000 signs, logos and shops and with Google Places iD.
The direct result is that banks and fintechs leveraging this solution have improved the clarity of transactions and, along with it, their relationship with customers. They have also lightened the load on call center complaints, especially helpful in summer when many customer care employees are on vacation.
In addition, to enhance transactions with relevant location data, Google Maps Platform has a range of tools such as Place ID, which helps to uniquely identify a place from the Google Place database. In this case, you’ll want to strategically choose an experienced Google Maps Premier Partner like Web Geo Services to optimize and improve the use of maps in online banking apps and websites.
Woosmap Merchant API is a Rest API developed by Web Geo Services that helps bank and fintech customers keep track of their payments and where they took place.
The API, which is quick, easy and safe to integrate, provides a clear and easy-to-recognise transaction name, brand logo, unique Google place ID and identifies where the payment was made in Europe, North America and Asia. It can also display the merchant’s details (phone number, address, ratings).
The result is that the customer has a better experience and perception of security, and disputes are minimised.
As a result, credit cards offering this type of service are fast increasing, and it’s becoming a major differentiating factor – especially for young people, who are often customers of several banks and seek out special online services to easily manage their finances.
Travel used to be a potentially dangerous situation for users’ bank accounts – and a hot spot for scams.
Back then, to find out if your card had been hacked while abroad, you had to spend untold hours on the phone with your bank, often calling from a phone booth eating up phone card minutes.
Today, banks have far more sophisticated systems for detecting unauthorised or fraudulent transactions, and many rely on geolocation via mobile devices and alerts for charges made far from the usual locations.
Geolocation makes it possible to block transactions involving large amounts of money and to detect if, for example, someone far away is attempting to withdraw money using someone’s cloned ATM card. Providing this kind of service via your own payment app is a distinguishing factor that will reward you with your customers’ trust.
Localisation is an effective way to offer customised, contextualised, location-based services to mobile users.
But knowing your customers’ location is not enough: there is so much useful information that is often lost about where the user is and how they interact with their surroundings.
Some location intelligence solutions like Woosmap with its API Geofencing SDK make it possible to mark out a “geofence” (a defined area) relative to a point of interest (shops, offices, etc.) and to trigger an event when users enter, stay in or leave the area. This makes it possible to send in-app messages, notifications or location-based events that can provide valuable data for geomarketing activities and more.
This API can automatically track location in the background – while respecting user privacy – in order to send contextualised communications.
The uses are endless – even when the customer is on vacation.
For example, people spending a long time at a beachside hotel are more likely to spend a lot on their stay and are therefore more likely to choose to pay in instalments. In this case, you could send them an alert directly to their mobile phone to propose an instalment plan. This strategy will both make it easier for customers to spend and for companies to market new products and services to them by making them feel the benefits at the right time and place, when and where they’re most likely to buy – especially when relaxing in their soothing summer bliss.
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