Divya Haritwal

Strategy
Retention
May 29, 2024

Divya Haritwal

May 29, 2024
Strategy
Retention

The RoI of Community in Fintech: Unlocking Value Beyond Transactions

In a fintech survey, 80% of participants showed a preference for brands that offer personalized services. Understand how communities play a critical role in the adoption of financial products and services and how to design personalized experiences through the community.

Imagine an app where users don't just check their balances and make transactions but also engage in lively discussions, share financial tips, and support each other’s financial goals. This isn't just a dream; it's the power of community in fintech. According to data, apps with active community features saw a 30% increase in user retention. Not just that, these brands also saw:

  • 1.7x better app stickiness
  • 50% rise in DAU
  • 73% of users reported gaining higher financial literacy through community experiences and word-of-mouth.

In the fast-evolving fintech space, the power of community has emerged as a key driver for growth and enhancing customer experience. But how exactly does a community translate into tangible benefits such as increased app engagement and retention? In this blog, we’ll explore the benefits of having an in-app chat or feed to support community features, examples of use cases for different subsets of fintech, and how to design a community for any business. Let’s dive in!

The Benefits of Community in Fintech

Imagine you have a fintech app that helps users manage their investments. You have a solid user base, and you’re trying to increase engagement and retention and unlock the full potential of these users. Enter the community. According to a report, 66% of branded communities have reported an impact on customer retention through the community.

Apps with active communities see a significant increase in app opens and user retention. Users who engage with community features like forums, chat groups, or social feeds are more likely to stick around and even become advocates for your brand.

Users today crave connection and a sense of belonging, even in their financial lives. A community offers a platform for users to share experiences, seek advice, and stay informed about the latest financial trends — all within your app.

Reasons to Build a Community in Fintech?

While there are many reasons to incorporate community features such as review feeds, Q&A feeds, 1:1 and/or group chats in your app, here is a list of some of the key reasons you should get started right away:

  1. Increased App Opens

A community encourages users to return to your app more frequently. Whether it's checking out the latest discussions, participating in polls, or reading user-generated content, a vibrant community provides continuous reasons for users to open your app.

  1. Enhanced Engagement

Engagement goes beyond simple interactions. In a fintech community, users can engage with each other by discussing investment strategies, sharing financial tips, or even participating in live Q&A sessions with financial experts. This level of interaction not only keeps users engaged but also provides them with valuable insights and knowledge.

  1. Higher Retention Rates

Retention is a critical metric for any app. A strong community fosters loyalty as users feel part of a larger group. This sense of belonging makes them less likely to switch to a competitor. Furthermore, community-driven content and discussions can keep users interested and invested in your app’s ecosystem.

  1. Better Customer Experience (CX)

A community enhances the customer experience by providing real-time support and feedback. Users can get their questions answered quickly by peers or moderators, reducing the load on customer service. Additionally, the diverse perspectives within a community can help users make better-informed financial decisions.

  1. User-Generated Content

Communities often become rich sources of user-generated content. This content can be leveraged to enhance the app’s value proposition, as well as to increase brand trust and visibility through testimonials, success stories, user reviews, and social media posting.

Community Use Cases in Fintech With Some Real Examples

Now that we have established enough reasons to build an in-app/web-based community, let’s understand the community use case through examples of different products and offerings within the fintech industry:

  1. Investment Platforms

For investment platforms, a community can provide a space for users to share market insights, discuss stock picks, and exchange investment strategies. This could be in the shape of a forum or different chat groups dedicated to different types of investments (e.g., stocks, bonds, cryptocurrencies).

This is one of the prominent categories where many communities exist for retail investors and professional traders alike.

From legacy brands such as Motilal Oswal to new-age ventures such as Jupiter Money, StockGro, Dhan, Frontpage, and Trading QnA by Zerodha — there are many, many examples of investment communities focused on different types of goals such as investing in stocks, F&O, commodities, ETFs, mutual funds and more.

Then there are platforms such as Commonstock where the product is built as a social network for investing.

  1. Personal Finance Management Apps

These apps can benefit from a community where users share budgeting tips, debt repayment strategies, and financial planning advice. A feed-based approach where users can post their financial milestones or challenges can drive engagement.

Splitwise, one of the most popular apps has a commenting feature allowing users to engage with other group members. YNAB - a budgeting app is designed completely with the social aspect in mind since budgeting goes beyond an individual and can have joint needs with a spouse, parents, kids, business partners, and more.

Tiller - a Google Sheets/ Microsoft Excel-based tool also has self-hosted web community forums that let users find answers, ask questions, connect with Tiller users, and discover new ways to track, analyze, and manage their money.

  1. Peer-to-Peer Lending Platforms

A community can facilitate trust and transparency for P2P lending platforms. Lenders and borrowers can interact, share experiences, and provide feedback on transactions. This can help build a trustworthy platform where users feel confident engaging in financial transactions.

Tanda - a social savings and lending app by Yahoo Finance, has social features such as trust score, sharing achievements, and an option to express “thanks” for receiving money when needed.

  1. Cryptocurrency Exchanges

Given the volatile nature of cryptocurrencies, a community can be invaluable. Users can discuss market trends, share predictions, and provide tips on secure trading practices. A live chat feature can enable real-time discussions during market shifts.

How to Build a Community for Your Fintech App

Having a clear understanding of the why and how of the use case helps in creating an efficient strategy for designing the community experience while also making it easier to identify the metrics to measure. Let’s understand how to get started with figuring out the community strategy:

Define Your Community’s Purpose

Identify what you want to achieve with your community. Is it to provide (customer) support, share knowledge, or build a network? Understanding the purpose will guide the type of community you build.

Choose the Right Platform

Select a platform that aligns with your community’s needs. This could be an in-app forum, a chat feature, or integration with existing social media platforms. Ensure it is user-friendly and accessible. Also, look into the ease of migration in the case of a 3rd party platform and customizability in the case of chat and feed SDKs.

Create Engaging Content

Kickstart your community with valuable content. This could be articles, tutorials, Q&A sessions, or expert interviews. Consistent, high-quality content will attract and retain users. This will also help set a direction for the members’ behavior by nudging users to interact in a way that is in line with the community guidelines.

Encourage User Participation

Promote active participation by creating incentives such as badges, leaderboards, or rewards. Encourage users to ask questions, share experiences, and provide feedback. This can boost UGC, FAQ creation, product feedback, and customer support.

Moderate and Nurture the Community

Ensure a positive and respectful environment by moderating discussions. Address any negative behavior promptly and nurture the community by regularly engaging with users. Design a custom onboarding experience to make new members feel welcome in the community while also making them familiar with the community guidelines.

Create volunteer programs to support member-led moderation while also making power users feel valued.

Also read: Community Engagement: Essential Metrics to Track and Analyze

Conclusion

Building a community within your fintech app is not just a nice-to-have; it’s a strategic move that can significantly enhance user engagement and retention. By fostering a sense of belonging and providing a platform for users to connect, share, and learn, you can unlock tremendous value for your business. The ROI of community in fintech is clear: higher app opens, increased engagement, better retention rates, and a superior customer experience. Start building your community today and watch your fintech app thrive.

About LikeMinds

LikeMinds is a plug-and-play infra for building custom in-app communities through their highly customizable chat and feed SDKs. Creating a community can seem daunting, but LikeMinds enables fast integration, complete support along the journey, and a super fast go-live time so that you can focus on engagement and retention instead.

Supercharge your retention with in-app social features

Deploy customised features on top of chat and feed in 15 minutes using LikeMinds SDK.

Contact us to schedule a demo!
Image showing Resource Library, which is a inApp feed usecase.

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The RoI of Community in Fintech: Unlocking Value Beyond Transactions

Divya Haritwal
/
May 29, 2024
/

In a fintech survey, 80% of participants showed a preference for brands that offer personalized services. Understand how communities play a critical role in the adoption of financial products and services and how to design personalized experiences through the community.

Imagine an app where users don't just check their balances and make transactions but also engage in lively discussions, share financial tips, and support each other’s financial goals. This isn't just a dream; it's the power of community in fintech. According to data, apps with active community features saw a 30% increase in user retention. Not just that, these brands also saw:

  • 1.7x better app stickiness
  • 50% rise in DAU
  • 73% of users reported gaining higher financial literacy through community experiences and word-of-mouth.

In the fast-evolving fintech space, the power of community has emerged as a key driver for growth and enhancing customer experience. But how exactly does a community translate into tangible benefits such as increased app engagement and retention? In this blog, we’ll explore the benefits of having an in-app chat or feed to support community features, examples of use cases for different subsets of fintech, and how to design a community for any business. Let’s dive in!

The Benefits of Community in Fintech

Imagine you have a fintech app that helps users manage their investments. You have a solid user base, and you’re trying to increase engagement and retention and unlock the full potential of these users. Enter the community. According to a report, 66% of branded communities have reported an impact on customer retention through the community.

Apps with active communities see a significant increase in app opens and user retention. Users who engage with community features like forums, chat groups, or social feeds are more likely to stick around and even become advocates for your brand.

Users today crave connection and a sense of belonging, even in their financial lives. A community offers a platform for users to share experiences, seek advice, and stay informed about the latest financial trends — all within your app.

Reasons to Build a Community in Fintech?

While there are many reasons to incorporate community features such as review feeds, Q&A feeds, 1:1 and/or group chats in your app, here is a list of some of the key reasons you should get started right away:

  1. Increased App Opens

A community encourages users to return to your app more frequently. Whether it's checking out the latest discussions, participating in polls, or reading user-generated content, a vibrant community provides continuous reasons for users to open your app.

  1. Enhanced Engagement

Engagement goes beyond simple interactions. In a fintech community, users can engage with each other by discussing investment strategies, sharing financial tips, or even participating in live Q&A sessions with financial experts. This level of interaction not only keeps users engaged but also provides them with valuable insights and knowledge.

  1. Higher Retention Rates

Retention is a critical metric for any app. A strong community fosters loyalty as users feel part of a larger group. This sense of belonging makes them less likely to switch to a competitor. Furthermore, community-driven content and discussions can keep users interested and invested in your app’s ecosystem.

  1. Better Customer Experience (CX)

A community enhances the customer experience by providing real-time support and feedback. Users can get their questions answered quickly by peers or moderators, reducing the load on customer service. Additionally, the diverse perspectives within a community can help users make better-informed financial decisions.

  1. User-Generated Content

Communities often become rich sources of user-generated content. This content can be leveraged to enhance the app’s value proposition, as well as to increase brand trust and visibility through testimonials, success stories, user reviews, and social media posting.

Community Use Cases in Fintech With Some Real Examples

Now that we have established enough reasons to build an in-app/web-based community, let’s understand the community use case through examples of different products and offerings within the fintech industry:

  1. Investment Platforms

For investment platforms, a community can provide a space for users to share market insights, discuss stock picks, and exchange investment strategies. This could be in the shape of a forum or different chat groups dedicated to different types of investments (e.g., stocks, bonds, cryptocurrencies).

This is one of the prominent categories where many communities exist for retail investors and professional traders alike.

From legacy brands such as Motilal Oswal to new-age ventures such as Jupiter Money, StockGro, Dhan, Frontpage, and Trading QnA by Zerodha — there are many, many examples of investment communities focused on different types of goals such as investing in stocks, F&O, commodities, ETFs, mutual funds and more.

Then there are platforms such as Commonstock where the product is built as a social network for investing.

  1. Personal Finance Management Apps

These apps can benefit from a community where users share budgeting tips, debt repayment strategies, and financial planning advice. A feed-based approach where users can post their financial milestones or challenges can drive engagement.

Splitwise, one of the most popular apps has a commenting feature allowing users to engage with other group members. YNAB - a budgeting app is designed completely with the social aspect in mind since budgeting goes beyond an individual and can have joint needs with a spouse, parents, kids, business partners, and more.

Tiller - a Google Sheets/ Microsoft Excel-based tool also has self-hosted web community forums that let users find answers, ask questions, connect with Tiller users, and discover new ways to track, analyze, and manage their money.

  1. Peer-to-Peer Lending Platforms

A community can facilitate trust and transparency for P2P lending platforms. Lenders and borrowers can interact, share experiences, and provide feedback on transactions. This can help build a trustworthy platform where users feel confident engaging in financial transactions.

Tanda - a social savings and lending app by Yahoo Finance, has social features such as trust score, sharing achievements, and an option to express “thanks” for receiving money when needed.

  1. Cryptocurrency Exchanges

Given the volatile nature of cryptocurrencies, a community can be invaluable. Users can discuss market trends, share predictions, and provide tips on secure trading practices. A live chat feature can enable real-time discussions during market shifts.

How to Build a Community for Your Fintech App

Having a clear understanding of the why and how of the use case helps in creating an efficient strategy for designing the community experience while also making it easier to identify the metrics to measure. Let’s understand how to get started with figuring out the community strategy:

Define Your Community’s Purpose

Identify what you want to achieve with your community. Is it to provide (customer) support, share knowledge, or build a network? Understanding the purpose will guide the type of community you build.

Choose the Right Platform

Select a platform that aligns with your community’s needs. This could be an in-app forum, a chat feature, or integration with existing social media platforms. Ensure it is user-friendly and accessible. Also, look into the ease of migration in the case of a 3rd party platform and customizability in the case of chat and feed SDKs.

Create Engaging Content

Kickstart your community with valuable content. This could be articles, tutorials, Q&A sessions, or expert interviews. Consistent, high-quality content will attract and retain users. This will also help set a direction for the members’ behavior by nudging users to interact in a way that is in line with the community guidelines.

Encourage User Participation

Promote active participation by creating incentives such as badges, leaderboards, or rewards. Encourage users to ask questions, share experiences, and provide feedback. This can boost UGC, FAQ creation, product feedback, and customer support.

Moderate and Nurture the Community

Ensure a positive and respectful environment by moderating discussions. Address any negative behavior promptly and nurture the community by regularly engaging with users. Design a custom onboarding experience to make new members feel welcome in the community while also making them familiar with the community guidelines.

Create volunteer programs to support member-led moderation while also making power users feel valued.

Also read: Community Engagement: Essential Metrics to Track and Analyze

Conclusion

Building a community within your fintech app is not just a nice-to-have; it’s a strategic move that can significantly enhance user engagement and retention. By fostering a sense of belonging and providing a platform for users to connect, share, and learn, you can unlock tremendous value for your business. The ROI of community in fintech is clear: higher app opens, increased engagement, better retention rates, and a superior customer experience. Start building your community today and watch your fintech app thrive.

About LikeMinds

LikeMinds is a plug-and-play infra for building custom in-app communities through their highly customizable chat and feed SDKs. Creating a community can seem daunting, but LikeMinds enables fast integration, complete support along the journey, and a super fast go-live time so that you can focus on engagement and retention instead.

Supercharge your retention with in-app social features

Deploy customised features on top of chat and feed in 15 minutes using LikeMinds SDK.

Let's start!