Language skills assessment tests can benefit the new players in the financial technology (fintech) space, as they begin to rise and disrupt traditional banking and financial services, changing the way people save, spend and invest.
Just as language skills assessment benefits telecom and broadband companies, Versant’s language skills assessment tests can improve the customer service operations of rising fintech companies, who are now mostly in customer-facing services like mobile payments, money transfers, crowdsourcing and fundraising, and even asset management.
Among the positive qualities of Versant are being:
- Fully automated, requiring no human intervention and free from bias;
- Reliable and valid, compared to human raters;
- Comprehensive, with testing skills in speaking, listening, reading and writing;
- Easy-to-use, with web-based administration and detailed reports; and
- Fast and efficient, with speedy results and scores available in minutes.
According to the recent Forbes Fintech 50: The Most Innovative Fintech Companies in 2020, the top new–and not-so-new–players in the space cover:
- Personal finance;
- Real estate;
- B2B lending, and
- Blockchain/bitcoin services
Most of these fintech firms are in New York and California, and two each in both Boston and London. Moreover, the Top 50 fintech firm include one each in Atlanta, Georgia and Columbus, Ohio.
Citing data from Accenture, the Forbes Fintech 50 report revealed that global investors have funneled more than $53 billion into fintech startups throughout 2019. Compared to eight in 2018, according to Forbes, at least 13 fintech firms are worth more than $2 billion by end of 2019.
The popularity of India’s fintech platforms have skyrocketed in recent years. While plastic card use dropped from 56 to 46 percent between 2018 and 2019, transactions in its Unified Payments Interface (UPI) system soared from 17 to 38 percent within the same period. Of this, 59% of such UPI transactions reportedly took place via Google Pay.
Since the UPI launch in September 2016, the system is slowly closing in on one significant milestone: 1 billion transactions per month. India’s UPI was able to clock in 955 million transactions amounting to 1.61 trillion Indian rupees (INR) in September 2019.
The whole idea of neo-banking, a catch-all term for firms attempting to build digital banking startups, is to create a bank on a mobile phone.
While traditional banks factor in the very high cost of their prime real estate locations, neo-banking is mobile-based. Neo-banks can dramatically reduce costs that traditional banks pass on to customers, thereby improving customer experience through fintech.
Two new neobanks, the future of personal financing, in the Forbes list have positioned themselves as simpler, cheaper and more consumer-friendly alternatives to traditional banks and their rising fees.
One neobank, which promotes itself with a cartoon bear and a banking-for-humans tagline, offers cash advances of up to $100 for their clients, instead of hitting them with overdraft fees.
For fintech start-ups focusing on personal finance, they reflect the rise of the digital bank as well as the growing areas of consumer financial behavior that fintechs are seeking to influence. In 2019, payments startups made $15 billion globally, a 20% jump from 2018 that is equivalent to more than 25% of all fintech funding, according to Accenture.
Crypto and Real Estate
As smaller fintech firms begin doing blockchain and bitcoin cryptocurrency services, “Big Tech” firms are upping the ante by partnering with “Big Banking” with services like payments and cryptocurrency.
But fintech companies are faster in conducting digital real estate sourcing.
One online mortgage lender in the Forbes Top 50 can provide home shoppers with pre-approvals in just around 3 minutes, while another one is an expert on the digital equivalent of the old rent-to-own model.
Overall, total Venture Capital funding for private American fintechs reached $18 billion in 2019, up from $13 billion in 2018, according to CB Insights and PwC. Compared to other US industries, fintech firms bucked the trend of a 9-percent drop in total VC funding.
As the biggest fintechs get even bigger, the Top 10 in the Forbes 50 had an average valuation of $9 billion in 2019, compared to $6 billion in 2018.
Meeting Global Demands
An unmet demand for large financial services has propelled fintech adoption, and mobile payments have indeed offered a faster platform for basic banking and other financial services. These include making cross-border transfers of remittances cheaper.
With the trust and dependence of the younger generations in technology, growing nations with younger population will likely see more fintech activities and customer services.
For their customer service operations in 2020 and beyond, Versant’s language skills assessment tests can help fintech companies assess the job roles of their:
- Global team members doing multinational team calls as well as detailed status reports and email communication;
- Senior managers, who represent the organization during industry events, speak to shareholders and lead negotiations during mergers and acquisitions; and
- Field associates, who speak and write on various topics with clients and prospects, as well as create and present sales proposals.