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Fintech users overwhelmed by choice, concerned about security: Study
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Illustration of fintech (Shutterstock/File)
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survey conducted by Boston Consulting Group in collaboration with Indonesia’s AC Ventures shows that financial technology users are having a hard time choosing which app to rely on.
Respondents across the four different age groups surveyed said selecting from the large range of options was the number one problem, ahead of security concerns and higher costs compared with traditional banks.
“Platform differentiation is crucial. [A crowded] space means players need to build unique offerings in order to capture a share of nonfintech users,” reads the report titled “Indonesia’s Fintech Industry is Ready to Rise”.
Released on Wednesday, the report finds that customers face initial challenges in settling on a fintech platform because of the wide array of options, coupled with a lack of meaningful differentiation.
In addition, a majority of users in three age groups cited concerns about security as the second biggest gripe they had with fintech, reflecting a lack of public trust when it came to leaving funds in nonconventional institutions.
The report revealed that 40 percent of consumers would like to see “concrete assurances” about the safety of their funds.
Fintech providers beat legacy banks in four aspects, namely ease of use, application interface, special offers and access to additional financial services, according to the survey. The only field where fintech is perceived as inferior is security.
