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  • Writer's pictureIryna Yamborska

CRM for FinTech: Why Choose Salesforce For Fintech Companies

This month German specialists of information technologies published the article “What determines FinTech success?—A taxonomy-based analysis of FinTech success factors”. They provided insights into the potential determinants of FinTech players' success. Information technologists have conducted a taxonomy-based analysis of 231 research articles about FinTech business model archetypes.


That’s what their results show: technological characteristics such as “security, privacy, and transparency” and “technology adoption,” along with user factors such as “user trust” and “user-perceived quality” and operational factors as the “cost–benefit dynamic of the innovation” are relevant for FinTech success.

But here is a stumbling block: the mentioned success factors are also the main challenges for FinTech companies. FinTechs must meet the listed success factors to remain attractive to investors and customers, especially in the first years of founding.


Salesforce for FinTech: How Salesforce helps to deal with Top 5 Fintech Challenges


On March 23, Epam Inc. published an article that mentioned five challenges in the FinTech industry. We decided to analyze such bottlenecks and offer Salesforce-based solutions.

1. Data Security.

As a disruptive technology of the future, Fintech operations should be based on three pillars such as ubiquity, security, and strict regulations to offer financial stability. FinTech faces security and privacy challenges mainly because of the IT applications that it uses for providing continuous services. During the last few years, a lot of investigators expressed significant concerns about security and privacy in the FinTech area. According to Silicon Valley Bank reports, only 35% of companies are confident in their security, which mainly depends upon the employment of technology for achieving business objectives. When talking about data security in the Salesforce environment, the key point that must be mentioned is that Salesforce is focused on setting up restriction rules to prevent users from accessing records containing sensitive data or information not essential to their work and ensure that unauthorized people can’t access sensitive data. Salesforce formulated a data security model broken down into four levels. So administrators can set rules and quickly provide or restrict access. Security levels are as follows:

  • Organizational level security

  • Object Level Security

  • Record Level Security

  • Field Level Security

2. Regulations and Compliance


Regulatory constraints, including unclear regulation and the high compliance costs involved in acquiring financial licenses, may become a severe struggle for entrant FinTechs. Each FinTech company must follow several standards, such as the Money Laundering Control Act, GDPR, GLBA, the Wiretap Act, and others.


Salesforce has a built-in to manage security risks and ensure regulatory compliance. Salesforce’s robust security infrastructure and compliance tools enable fintech companies to operate within a secure environment and comply with the restricted law requirements. Existing compliance practices promote a high adoption rate for Fintech solutions. Salesforce CRM can help encourage better compliance practices so the company is not in legal or regulatory trouble. Salesforce provides a great number of security features, such as security health checks to perform system audits and inspections regularly.


3. Service Personalization


Financial institutions that are flexible in relations with customers and deliver personalized experiences can enhance trust and deepen financial relationships. According to Ernst & Young's research, called "How financial institutions can win the battle for trust," the most valued personalization features are those that help maximize functional benefits, such as loyalty programs. 81% of Gen Z identified personalization as a feature that could deepen their relationships (compared with 47% of over age 65).


63% of all consumers said they would "highly value" open banking and embedded finance solutions that curate, connect and personalize their experiences with trusted third parties.


Salesforce CRM gives a great opportunity for segmentation clients to ensure they all have a personal approach. Using the data stored in the Salesforce platform - all in one place - each team interacting with the customer (or lead) can process the data and goal the customer what is really valuable. As a result, the business provides customers with financial solutions adapted to unique financial goals and satisfy specific requirements. For example, some companies can offer different packages for the insurance of personal belongings, or give new advantages in innovation for health insurance, after processing clients’ data.


4. Lack of Mobile and Tech Expertise


The development of FinTech is indebted to the mutual integration of different state-of-the-art technologies like technologies related to a mobile embedded system, mobile networks, mobile cloud computing, big data, data analytics techniques, cloud computing, etc. With low-quality IT systems, users may conclude that Fintech providers lack the ability to provide high-quality services in general, which leads to lower trust and higher perceived risk in Fintech.


Salesforce technologies offer opportunities for developers to work with every aspect of business applications. With Salesforce, developers can build solutions using a combination of no-code tools and code. Certain features that can be complex to implement, like wizards, data security rules, and basic UI customizations, can all be accomplished with no code. The two key languages in the Salesforce world are JavaScript and Apex.

"Salesforce products are expansive, covering sales, service, marketing, analytics, commerce, and more. Every part of Salesforce exposes APIs. Developers use these to create web apps on Heroku, supercharge their integration with MuleSoft, or even customize one of the standard applications. It’s fair to say that any developer can be a Salesforce Developer". - Salesforce.

After you decide to implement Salesforce - leave the adjusting process to the professionals. Together with personal Salesforce consultants, you can customize Salesforce to your specific cases and optimize and automate business processes scattered across multiple systems and departments. If you are not sure where to start, Sparkybit will help you to understand Salesforce use cases, capabilities, and potential for your company. We will build your brand-new applications with Apex programming and integrate third-party applications.

“Each code line and each product is about creating a complex value chain. So before jumping to development, we make sure we understand the value deeply”. - CTO at Sparkybit.

5. User Retention and User Experience


In a business field that's growing all the time, user retention is critical if you want your product to beat out the competition. Customer acquisition might cost businesses 5 – 25x more compared to customer retention. This is why it's worth it to build a strategy of hanging on to the customers you've got.


Salesforce Customer 360 allows businesses to unite teams and data with a single customer view. Let's take a quick look at PayPal - an American FinTech company that operates an online payments system around the globe. PayPal is one of over 150 thousand Salesforce customers. In PayPal, they admit that each product was previously perceived as a separate organization. And if some clients needed another extra PayPal product, they were supposed to interact with another department. So, both the PayPal team and the customer had to kind of start at the very beginning: discuss the same topics and enter all the data in a separate system. Not so customer friendly, isn't it? The company didn't have a general view of a client's history and, as a result, couldn't offer either an individual approach or the best-fitting solutions. To enhance user experience, PayPal enables sales, service, and customer success teams to work together with a 360-degree view of all the customers' interactions with the company. Each team can now recommend the right product. Salesforce Customer 360 simplifies customer support and engages with context and relevance.


Salesforce for FinTech: conclusion


FinTech companies are rapidly gaining relationship championships with consumers, posing a competitive challenge to other financial institutions. Without addressing the challenges as well as smooth and trustable integration of IT applications always remains under question mark which may simply bring down the performance of FinTech. All the challenges mentioned above can be overcome with Salesforce for FinTech, its integration and customization.

Explore the Salesforce User Stories of FinTech market leaders in our recent blog post.

Sparkybit is Salesforce consulting and development company. We make Salesforce perform at its best by fitting it to Clients’ custom business needs. 9 years of sharpened expertise, 25+ successful long-term projects globally. Contact us to make Salesforce work as it best.

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