Tillo report reveals loyalty deficit in fintech sector

Rewards and incentives API platform, Tillo, has provided insights into fintech brands and their levels of consumer loyalty in their recent report, 'Bridging the Loyalty Gap: Consumer Insights for Fintech Engagement and Growth'. The study's findings delve into the current state of customer engagement, trust, and loyalty within the fintech sector, examining how these elements impact consumer choices and fintech growth opportunities.

Tillo's report discloses that currently 68% of consumers express no loyalty towards fintech companies. Furthermore, with 38% of consumers not yet having engaged with fintech services, there appears to be a substantial opportunity for companies in this sector to build their user bases and augment engagement levels. Out of all those partaking in the study, only 32% declared loyalty towards fintech brands. The most engaged demographic with fintech is consumers aged between 35-44.

The report also highlights a significant trust issue within the fintech sphere. About one in four respondents expressed distrust in fintech services. The highest level of distrust was directed towards cryptocurrency offerings, indicating an area of focus for fintech brands to foster more trust and encourage adoption. With fintech companies being consistently ranked the least popular among industries with loyalty programs, this clearly presents an opportunity for some strategic rethinking from these companies.

The Tillo report finds that strategic incentives and rewards could be the game-changer for fintech companies. A significant 57% of consumers consider sign-up incentives and loyalty rewards as influential factors when choosing their fintech service providers. The report states that 19% of the respondents are more likely to engage with a fintech product or service if there are associated incentives or a related loyalty program. The most enticing reward, according to the survey participants, was gift cards, with 68% designating them as an attractive incentive.

While the monetary value of the rewards offered was vital, respondents also placed massive importance on the convenience and variety of rewards offered. Fintech companies, the report suggests, could close their existing loyalty gap by effectively implementing incentives and rewards, converting both skeptics and infrequent users into loyal customers. The co-founder and CEO of Tillo, Alex Preece, further emphasized the strategic importance of such incentives, stating that "Gift cards are the most popular and appealing reward type across all demographics, highlighting their potential as a crucial strategic asset for fintech companies looking to increase their market share and profitability".

Overall, Tillo's research survey is underlining that well-schemed incentives and rewards are not merely ancillary, but essential strategies for enhancing customer engagement and loyalty. This is especially true considering every stage of the customer lifecycle, offering fintech businesses feasible pathways for growth and increased profitability.