Financial Services: Cases studies
Fintech Startup:
The fintech startup, an innovative player in peer-to-peer lending, had launched a platform enabling borrowers and investors to connect directly. The idea was simple: to offer an alternative to traditional banks, with faster processes and more competitive rates. However, despite the appeal of the solution, the company faced a major problem: a high churn rate among both borrowers and investors.
Borrowers were leaving the platform after completing their loans, while investors, although attracted by the returns, were not staying long enough to build a stable portfolio. This churn affected the startup's profitability, as the platform needed a committed user base to grow sustainably. The startup's business model relied on the long-term loyalty of both stakeholders to maximize lending and investment opportunities. The company needed to solve this problem to ensure its development.
High churn and low user engagement
The challenge was daunting: the startup was unable to maintain consistent engagement among its users. Borrowers, after obtaining their loan, were not returning to the platform for future transactions, and investors didn't have enough reason to reinvest their earnings.
The main obstacle was understanding what was missing in the customer experience. Users felt disconnected from the platform once they had achieved their goals. In addition, communications with users were mainly transactional and not very personalized, which didn't help build a lasting relationship.
Another crucial challenge was to combine loyalty and profitability. The startup wanted to offer attractive rewards to encourage loyalty, but also needed to ensure that these incentives did not compromise its long-term profitability. This meant finding ways to motivate users without putting undue pressure on cash flow.
Customized strategies to build user loyalty
Framing Impacts was consulted to provide a strategic solution to this retention problem. After an in-depth analysis of the startup's ecosystem and user behavior, several levers were identified to improve retention while maintaining the company's profitability.
Tailor-made loyalty program: We designed a rewards program specifically for the most loyal users. The program offered incentives tailored to each user group (borrowers and investors), depending on their activity on the platform. For example, investors could earn bonuses on their returns by reinvesting their earnings, while borrowers benefited from preferential rates for future loans.
Personalized communication: We also rethought communication with users, introducing a personalized approach. Rather than sending standard messages, each user began to receive messages tailored to his or her specific behavior and needs. For example, an investor who had just made his first investment would receive a personalized follow-up with advice on diversifying his portfolio. Similarly, a borrower who had made an early repayment was congratulated and encouraged to consider new loans on advantageous terms.
Reducing churn and increasing satisfaction
The results were significant and exceeded initial expectations.
Churn reduced by 50%: Following the implementation of the loyalty program and personalized communication, the churn rate dropped by 50%, marking an initial success in user retention. Borrowers began to return for new loans, and investors reinvested a higher proportion of their returns, strengthening the long-term customer base.
15-point increase in NPS: Net Promoter Score (NPS), a key indicator of user satisfaction and loyalty, increased by 15 points. This result shows that users were now more likely to recommend the platform to others, indicating a more positive and engaging experience.
Positive financial return: Although the loyalty program involved rewards, the startup's profitability was preserved thanks to the increased volume of reinvested investments and renewed loans. Incentives motivated users to become more involved, increasing overall transaction volumes without negatively impacting margins.
The startup's marketing director expressed his satisfaction with the results: “The loyalty program has been a real turning point for us. Not only have we reduced churn, but we've also seen increasing loyalty among our users, which is essential for our growth. Framing Impacts has helped us create an authentic connection with our customers, and this has had a direct impact on our results.”
The main challenge was to strike a balance between loyalty incentives and profitability. By integrating attractive rewards, we had to ensure that the program would not eat into the company's profit margin. This required careful planning of short- and long-term costs and benefits.
In addition, the loyalty program had to be designed to meet the specific needs of two user segments: borrowers, often looking for lower rates and flexible options, and investors, who above all seek attractive, secure returns.
One of the key lessons learned from this project is the importance of personalized engagement. Users who feel understood and valued are far more likely to remain loyal to a platform. What's more, clear communication tailored to each phase of the user experience is essential to maintain trust and strengthen the relationship over the long term.
The success of this collaboration demonstrates that a strategic approach to loyalty, combined with personalized communication and well-designed incentives, can turn a major challenge into a sustainable growth lever for fintech startups.
This case study is a perfect illustration of how a fintech startup can overcome its loyalty challenges through tailored, human-centered strategies, while maintaining profitability.
Regional Traditional Bank:
The regional bank, well established in its geographical area, was facing a major challenge: its core banking system was obsolete, considerably slowing down its operational efficiency and its ability to offer new products quickly. The loan management process was mainly manual, resulting in long approval times and a degraded customer experience. This had a direct impact on the bank's competitiveness against more agile competitors, notably digital banks and fintechs offering instant lending solutions and a seamless user experience.
Customers, both retail and business, were frustrated by the slow loan approval process and the bank's inability to launch new products quickly. The bank knew it had to modernize its systems to improve efficiency, reduce costs and, above all, deliver a better customer experience.
A traditional bank confronted
with modernization needs
The major problem facing the bank was the long time-to-market for its new products. The old technology infrastructure was unable to adapt quickly to market demands, delaying the bank's ability to respond to rapidly changing consumer expectations. In addition, the loan approval process was entirely manual and time-consuming, which was unsustainable in a banking environment increasingly focused on speed and efficiency.
Customers, especially those seeking loans, were discouraged by the slowness of the process. They turned to faster alternatives offered by more modern players. This led to a loss of customers and general dissatisfaction, affecting not only short-term revenues but also the bank's long-term reputation.
Integrating AI and automation to modernize processes
Framing Impacts worked with the bank to design a modern technology solution, focusing on the integration of artificial intelligence (AI) and the automation of key processes. Two major changes were implemented to solve the problems identified:
Implementation of AI-powered credit scoring: This solution replaced the manual approach to credit scoring, using algorithms to analyze a greater amount of data, more quickly and more accurately. AI has improved the efficiency of the decision-making process, while reducing the risks involved in granting credit.
Automating the documentation process: the management of documents required for loans has been automated, enabling rapid, error-free verification of customer information. This has significantly reduced the time spent manually processing documents, lowering the risk of errors and speeding up the decision-making process.
These changes have not only reduced turnaround times, but also improved the accuracy and security of the loan process, contributing to a much smoother customer experience.
Significant growth in sales and loyalty
The results have been significant, with a radical transformation of banking operations:
Reduced time-to-market for new products: Thanks to API integration and the automation of internal processes, the bank was able to launch new products in much less time than before. This enabled it to respond more quickly to market demands and capture new business opportunities.
60% reduction in loan processing time: Automation reduced loan processing time by 60%, delivering a faster, more responsive customer experience. Customers no longer had to wait several days for loan decisions.
25% increase in customer satisfaction: With faster, more transparent processes, customers expressed a much higher level of satisfaction. The improved user experience led to a 25% increase in customer satisfaction, as measured by surveys and feedback on online platforms.
These results not only strengthened the bank's competitive position, but also increased customer loyalty and attracted new users.
The bank's head of operations expressed complete satisfaction with the changes made:
“Automation has radically transformed the way we work and enabled us to become a leader in customer experience. We now offer a much faster and more reliable service, which clearly sets us apart from our competitors.”
As with any technological transformation, several challenges had to be overcome. The main one was to prioritize the technological changes to be implemented and manage the transition while guaranteeing continuity of banking services.
In addition, it was necessary to train the teams in the new technologies, in particular to make effective use of artificial intelligence and the new automation tools. This training required an investment in time and resources, but was crucial to ensure successful adoption of the solutions by staff.
Experience has shown the importance of implementing solutions that are easy to use for both employees and customers. User-friendly automation not only improves internal efficiency, but also boosts customer confidence. The simplification of processes, while remaining transparent, has created an environment where customers feel in control of their banking operations, while enjoying faster, more efficient services.
Wealth Management Firm:
A boutique wealth management company, well established in the industry, was faced with a major challenge: it was struggling to attract the millennial clientele that was vital to the company's future. Traditional marketing strategies and a focus on older generations were no longer effective in capturing the attention of this younger demographic, which favors modern values and a more technological and ethical approach to investing.
The company understood that it needed to reinvent its approach to appeal to this generation, which is more concerned with environmental and social issues, yet accustomed to a strong digital presence. However, the company lacked the right strategy to connect with this specific audience.
A traditional asset management company
in need of Millennials
The main problem was the company's lack of relevance to millennials. This younger, more dynamic demographic had no interest in investing with a company that seemed stuck in traditional methods and values. What's more, the company didn't have a strong enough digital presence, making it invisible in a market where millennials seek information and financial services primarily online.
As a result, the company was struggling to expand its customer base and attract a younger clientele, essential to the long-term survival of its business.
Overhaul digital presence
and integrate ESG investments
Framing Impacts worked with the company to implement an innovative digital strategy that bridged the gap between the company and the millennial generation. Two main actions were implemented:
Revamp digital presence and focus on social media: The company modernized its website and created an active presence on social networks (Instagram, LinkedIn, Twitter) to better interact with a younger audience. It used these platforms to share educational content, market research and investment advice, attracting a new audience that is more connected and interested in fast-paced, interactive information.
Introduction of ESG (Environmental, Social, Governance) investment options: Millennials are increasingly attracted to investments that match their values. By integrating ESG investment options, the company has been able to capture a clientele concerned about the environmental and social impact of its investments. These new options have made it possible to meet the expectations of millennials, who are looking to invest ethically while achieving competitive returns.
Growth in the millennial customer base
and increase in AUMs
The results were immediate and significant:
20% increase in the millennial customer base: Thanks to a revamped digital strategy and the introduction of ESG investments, the company has seen its millennial customer base grow substantially. This younger, much more digitally engaged demographic now recognizes itself in the company's values and approach.
10% growth in AUM (assets under management): The increase in the younger customer base has directly contributed to growth in assets under management. These new investors not only brought in fresh funds, but also strengthened the diversity and stability of the company's overall portfolio.
These results have strengthened the company's position in the market, while meeting its needs for growth and diversification of its customer portfolio.
The company's Managing Partner expressed his satisfaction with the results achieved: “We are now relevant to a younger audience, thanks to Framing Impacts' innovative approach. Their expertise in digitalization and ESG strategy has enabled us to adapt to current market expectations, and attract a highly sought-after millennial clientele.”
One of the major challenges was to sensitize and train the company's team to the preferences of millennials, who differ considerably from older generations. The team had to adapt its discourse and offerings to better address the social and environmental concerns of young investors.
In addition, the implementation of the digital strategy required a period of adaptation for staff, who had to get used to new communication tools and methods.
This experience revealed a key lesson: modernizing offers and adapting the message are essential levers for attracting new categories of customer. Integrating ESG investments and strengthening our digital presence has enabled us to connect with a younger audience, often overlooked in traditional wealth management strategies.
The success of this transformation shows that to attract specific customer segments, it is crucial to understand their expectations, adapt to technological developments and offer solutions that match their values.