Hybrid models in fintech: Balancing technology and human touch for customer success

By Tashwinder Singh, CEO and MD, Niyogin Fintech Limited

The world of finance has been transformed by fintechs to dramatically change the interaction of a consumer with a financial service. Mobile banking, app stores, and AI investment brokerage have all done their magic on consumer financial access, charge, and personalised services. With technology advancing product innovations, all these are consolidated with a personal touch, and this has thereby brought the concept of hybrid ways for fintech, which combines efficiency-centric technologies with human empathy and expertise in customer engagement to provide a smartly holistic and customer-centric experience.

The role of technology in fintech

The role of technology in fintech is to provide solutions that ease the processes while cutting costs and widening access to finance. Automation, machine learning, and artificial intelligence would incorporate personalised services at scale into fintech organisations. Robo-advisors may design portfolios for individual investors using algorithms to determine investments based on their preferences. Such a system may entail using blockchain technology to allow secure, visible, fast, and low-cost transfers of funds and business transactions.

The primary benefit of technology in fintech is scalability. Fintech organisations are technology-based to fulfil millions of transactions or requests at the least possible expense as opposed to traditional banks, which rather depend on labour. This makes it globally available, even in remote and underprivileged areas.

The need for human touch

Technology may offer speed as well as convenience; however, it cannot replace the nuance and empathy that human interaction provides. Financial choices are extremely personal, and many would want to seek advice and reassurance while dealing with such intricate issues as loans or investments. Human advisors impart expert understanding, emotional intelligence, and personalised approaches to resolving problems that algorithms cannot replicate.

Not every customer is comfortable interacting with the service fully automated. Some customers prefer having the issue or concern resolved with a representative live, especially for high-dollar values during financial decisions. Customers would therefore need to ensure that they have the best of both worlds when fintech maximises its capabilities: transforming technology into human support.

Hybrid models: Balancing tech and touch

Hybrid models in fintech combine the best elements of technology and human support to create a more well-rounded experience. These models integrate advanced technology with human interaction, ensuring that customers receive efficient and personalised service.

1. AI-assisted human support: A popular hybrid approach is incorporating artificial intelligence-powered chatbots with human customer service representatives. Chatbots perform routine inquiries like checking account balances or giving basic answers and escalating other complex issues to human agents. This makes it possible for fintech companies to always offer support, but personalise it whenever it is needed at any time.
   
2. Robo-advisors with human oversight: In wealth management, robo-advisors offer algorithm-driven investment advice at scale. Hybrid models pair these systems with human financial advisors who provide more personalised services, such as helping clients navigate market volatility or tailor their financial plans. The human advisor adds depth to the automated advice, ensuring clients receive a balanced approach to investing.
   
3. Personalised financial planning platforms: Personalised financial platforms that combine AI and human expertise are another example of hybrid models. These platforms use AI to analyse a customer’s income, expenses, and goals, offering tailored financial plans. However, customers can also consult with financial advisors for more complex queries or adjustments, blending automated efficiency with human insight.
   

Advantages of Hybrid Models

Hybrid models offer significant benefits for both fintech companies and their customers:

• Increased customer satisfaction: Customers appreciate the speed and convenience of technology but value the reassurance and expertise that human interaction provides. A hybrid model meets these expectations by offering both.
  
• Enhanced trust and loyalty: The ability to access human support alongside automated services builds customer trust, especially for those hesitant about fully automated systems. This helps foster long-term relationships and customer loyalty.
  
• Improved problem-solving: While technology is excellent for efficiency, human advisors excel at managing complex or emotional situations. Hybrid models combine these strengths to provide better resolution and customer care.
  
• Scalability with personalisation: Fintech companies can scale operations using automation while still offering personalised customer support when necessary. This allows businesses to handle high volumes of transactions without sacrificing the quality.

Hybrid models in fintech are set to revolutionise customer service in India. By seamlessly merging cutting-edge technology with the empathy of human interaction, these models ensure that the rapid pace of innovation doesn’t overshadow the importance of personalised care. As the Indian fintech landscape continues to evolve, embracing hybrid approaches will empower fintech companies to deliver exceptional customer experiences, foster long-lasting relationships, and solidify their position as leaders in the industry.