February 11, 2020 Last updated February 11th, 2020 188 Reads share

5 Reasons Why Localization is Key in FinTech

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Localization and FinTech should go hand in hand. As the global financial services market is growing, companies in this sector need to enforce their presence in local markets to ensure growth. From becoming more licensed and regulated to understanding how people’s needs change from one country to another, there are many areas where localizing a business can become a game-changer.

Financial services providers need to streamline communication with their potential and existing customers. Whether they’re providing services for other organizations or individuals, they should deliver services in their users’ native language.

Here are five reasons why localization matters for financial services providers of all sizes.

Localization Ensures a Better Understanding of the Service

One of the principal reasons why localization is key in FinTech is the comfort that comes from talking about money in a language that people are comfortable using.

When providing financial services of any kind, trust is everything. People need to see you as a reputable institution that can take care of their funds. The only way to get such a reputation in this sector is by helping them understand the core values of your business.

Language and cultural barriers can quickly become an obstacle between your brand and international buyers. In this context, localization allows you to remain close to customers and communicate more effectively with them. By translating and localizing your website and product, you ensure a better understanding of the service by potential customers, regardless of the language they speak.

By localizing, you don’t only translate the content, but adapt it to make it easier for local audiences to get the picture of what benefits you bring to the table. People want details when there’s money involved, so be ready to give them all the information they need in a language that they can understand easily–even when they have no financial education.

It Boosts Your Credibility in the Sector

When you localize a FinTech product, you tell potential users and business partners that you care about customers. By making the product or service available in multiple languages, you provide a more personalized user experience for people who can benefit from it.

Credibility is essential for companies in the financial services market, and localization can help to prove your dependability. As a FinTech company, you’re disrupting a sector that has been controlled for years by banks and established financial organizations.

To be successful and reach a broad audience,  you need to build a reputation for your brand with numbers and facts that people can easily understand. After all, you’re asking them to trust you with their retirement savings, investments, or even the money they send abroad. The only way to get a positive answer is by getting familiar with local users in their native languages.

Localized Services Are a Competitive Advantage

Language can be a significant barrier in the financial sector, primarily when companies target customers with little or no knowledge in this field. People often have difficulties understanding the financial lingo even in their native tongues.

While financial inclusion is on the rise, many people still don’t have access to financial services. According to The World Bank, 1.7 billion adults don’t have a bank account. The good news for FinTech companies is that two-thirds of them have a mobile phone, which enables the unbanked to access financial services.

FinTech companies that localize for local languages get a competitive advantage. Not only will they communicate with locals more effectively, but they’ll also be more likely to overcome the cultural barriers that keep people from collaborating with banks in the first place.

Localization Can Increase Adoption in Local Markets

Localization done properly is an excellent way to gain the trust of local customers. When you provide tools and customer service in local languages, you make people feel they’re in good hands. It’s one of the reasons why FinTech companies should work with a translation company that has experience in this sector.

Professional language experts understand the importance of getting to know the target audience right from the start. This way, they can adapt your content and tailor the messages to add value to potential customers and generate engagement.

When people become confident with a product, they turn into advocates for the brand that has created it. They spread the word about the benefits of using your product or service. It increases brand awareness and helps to consolidate your reputation in the local market.

In other words, localization can help you to increase adoption, regardless of the type of financial services you provide.

Localization Is Key in FinTech Because It Ensures Compliance

The FinTech industry is known for its massive investments, and the market is expected to reach a value of nearly $26.5 trillion by 2022. All this money comes with a multitude of laws and regulations, from taxes to anti-money laundering and fraud to labor.

In many countries, financial service providers are required by law to provide information, contracts, disclaimers, and information about data protection in local languages. It’s a necessary measure to protect people and their funds against fraud and scams.

Localization becomes an essential part of the business when expanding your FinTech company outside national borders. Trying to communicate with your international public in a single language is like putting a message in a bottle and throwing it out at sea. Someone might find it and read it, but the odds aren’t in your favor.

After all, would you buy insurance or invest with a company that doesn’t provide all the necessary information in your mother tongue?

 

 

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Tulika Kiran

Tulika Kiran

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