Abstract

The study in the fintech companies and the factors that are essential in customer retention
would provide beneficial information that can be utilised by fintech companies. The study
identifies the factors that are relevant to the retention of customers. In business retention of
customers is essential. The significance of customer retention is not limited to particular
industry; instead, it is of utility in all business. Therefore, it is not only the fintech companies,
but other businesses can also benefit from the knowledge. Moreover, this study is concerned
with risk identification and mitigation in terms of challenges in front of fintech companies.
Fintech companies are an emerging sector that has the potential to grow. However, risks in
the form of security have the potential to disrupt the growth of the industry; therefore, it is
essential to analyse these factors. The challenges of security, technological changes and
knowledge among the customers are significant issues that would be covered in the study.
Therefore, this study is significant and of use to the fintech companies. The study would offer
substantial information to the fintech firms with regards to retention of customers. A mixed-
method would be used in the study so that both interview and survey can be conducted. A
mixed-method offers the advantage of using both qualitative and quantitative methods in
ascertaining a collection of information that can be measured as well as interpreted. Mixed
within would help in obtaining the perspectives of both the managers and employees about
the factor that influence customer retention. They can also suggest ways through which the
challenges in the fintech companies can be overcome.

1
Table of Contents
Abstract.................................................................................................................................................1
Introduction...........................................................................................................................................3
Aims of the project............................................................................................................................4
Primary Goal.................................................................................................................................4
Secondary Goal.............................................................................................................................5
Literature Review..................................................................................................................................8
Introduction.......................................................................................................................................8
Customer...........................................................................................................................................9
The emergence of fintech companies in UK....................................................................................10
Factors influencing customer retention in fintech companies..........................................................11
Challenges for Fintech in customer retention..................................................................................12
The gap in the literature...................................................................................................................13
Method................................................................................................................................................14
Participants......................................................................................................................................14
Design.............................................................................................................................................15
Materials..........................................................................................................................................15
Procedure.........................................................................................................................................16
Qualitative analysis.........................................................................................................................16
Results.................................................................................................................................................17
Discussion...........................................................................................................................................22
Conclusion...........................................................................................................................................23
References...........................................................................................................................................24

2
Introduction
The word “Fintech” has recently come into light in various business journals for the
description of a faster and a much cheaper way for the financial services to be human centred.
More than fifty billion dollars have been invested by the investors between the years of 2010
to 2015. More than six thousand to seven thousand companies around the world are trying to
get a part this profitable business (Benedek G et al. 2014). The scope of the company fintech
has not yet been clearly defined although the core elements have been widely accepted by the
stake holders of the company. One of the core elements that needs to be studies is the factor
of customer retention. It is widely straightforward that the retention of the old customers is
much more economical that acquiring new customers on a regular basis (Athey S et al. 2016).
This is mainly because the costs of the replacement of the old customers are significantly
higher than maintaining the old ones and the satisfaction of the old customers. Therefore,
from thus sentence evolves the term customer satisfaction. The words “customer retention’’
and “customer satisfaction” are widely based on meeting the customer’s demands, perception
and more importantly the expectations of the customers. There are various levels of customer
satisfaction and different implications tha come with it. The customers who are dissatisfied
with the services usually search for a different company for the same services and products
whereas the satisfied customers look in the same company for better and new products and
opportunities (Ascara E et al. 2017). Therefore, this can significantly improve the profits and
the margins for the company. So, the customer retention is actually understanding the
customer in a personal way to satisfy them to their best. Customer retention is an essential
practice in all organisations. Retention of customers is dependent on many factors, and
organisations try to utilise all efforts in retaining their customers. It cannot be denied that
customer satisfaction is an essential aspect of the retention of customers. Similar to all,
businesses are concerned about retention. Fintech companies are equally concerned about
customer retention. Among the factors that influence customer retention is the well-known
fact that a customer-centric approach is a useful strategy (Ascarza E et al, 2017). Being
customer-centric helps an organisation in establishing strong relationships with the
customers; most importantly, customer-centric approaches help business in providing
customers with efficient services. A customer-centric approach makes it possible for
organisations to ensure customer satisfaction. With growing interest in investment, new start-
ups investing in innovations, fintech companies are moving towards accelerated growth. For

3
fintech companies, the factors that are essential in retaining customers are perceived value,
gaining the trust of customers, meeting expectations and excellent services. Customers look
for value in what they purchase, whether it is a product or a service. The lack of value in a
product or service leads to the loss of customers. Therefore, it can be said that the lack of
trust in the services provided by the fintech companies can lead to customer loss (Jutla et al.
2016). Several companies are offering similar services, which give the customer an array of
options to choose from. If the customer finds that they have a better option than they might
switch to the other options.  In order to increase customer retention, it is essential to build
strong relationships. In this context personalisation as well as empathy plays an important
role. However, understanding social cues and adapting them in order to build trust and gain
loyalty from the customers is not an easy task for fintech companies as it is not easy to scale
these factors digitally (Kim T et al. 2016). Another challenging aspect that creates difficulty
for the fintech companies is maintaining security as the customer needs to face breach of
personal and financial information influencing them in various ways.

The fintech companies put much effort into acquiring and retaining customers. Fintech are
companies that offer financial services using software and modern technology. It is
noteworthy that Fintech is one of the fastest-growing sectors (Ascarza et al. 2017). The
industry provides financial services like payment, settlement systems, and remittance for
users using technology possessed by innovative non-financial corporations. It offers
opportunities to access financial services quickly and conveniently.

Aims of the project

Primary Goal
The primary aim of this project is to stufy the factors that are responsible of the retention of
the customers in the fintech companies in the UK (Mas et al. 2010). The objectives are:

 To identify factors that influence retention of customers in Fintech companies in the

UK

 To identify ways through which fintech companies retain customers

 To study the ways that are by fintech companies in obtaining customer loyalty

The factors in the fintech companies that are instrumental in attracting customers would be
focused on in the study. These are the key variables that influence the progress of the study. It
is an important variable as it has the potential to point out the factors that are utilised by the
fintech companies in getting customers (Wang JC et al. 2014). The operationalisation would
4
be done in interview and survey questions. For example, in the interview questions asking to
point out the risks in the sector would be included. The interview would not be face-to-face.
Instead, it would be in an online format which is similar to the survey. The interview
participants would only require to write down the answers to the questions sent through the
questionnaire. The skill required for conducting the survey, and the interview is an analytical
skill so that the right questions can be framed. In the absence of the right questions, it would
be challenging to fulfil the purpose of the research (Verbeke W et al. 2014). Apart from this,
another skill needed is proper question framing skills. If the words used in the questions are
not clear, and the sentence construction is faulty, then there are chances that the questions are
misunderstood. It is also essential to have excellent analytical skills so that the interview
results can be adequately analysed. In addition to the factors that influence the customer
retention the research paper also focus on other different ways to retain customers in the
fintech companies (Vafeiadias T et al. 2015). As loyalty is one of the important factors for the
customer retention, this paper also discusses the various ways through which the customer
loyalty can be maintained. The methods of data collection to be used in the study are
qualitative and quantitative methods. The tool for collecting quantitative data would be
survey questionnaires. The questions would be closed-ended with binary or and Likert scale
responses options (Taylor J et al. 2015). Close-ended questions are selected as it helps in
getting information from a large sample size since the sample here is 100 employers.
Therefore, the survey would help in obtaining data from them and transforming it into
statistical form for easy analysis. The survey questionnaire would include demographic
questions and questions based on chosen variables (Tamaddoni A et al. 2016).

Secondary Goal
The secondary aim of the study is to resolve the problem of security encountered by Fintech
companies through the integration of technology.

The objectives are:

 To study the security risks associated with fintech companies 

 To identify ways of mitigating the risks

The interview would be conducted among ten managers in the fintech companies. The survey
would comprise close-ended questions, as this would help in getting information that can be
changed in statistical form (Stahl F et al. 2012). The interview questions would be open-
ended to allow the interview respondents to write about their opinions. The primary data

5
collected through the mixed method provides the researcher with an opportunity to rely on
methods of interview and survey simultaneously. The participants for the study would be
recruited in a non-coercive way. It would be ensured that voluntary participation is
encouraged. For the recruitment of participants. The consent of the participants would be
taken before the survey and interview (Schweidel et al.2011). Managers of different fintech
companies from the UK would be sent requests for participation in the interview. The
managers accepting the requests to participate in the interview would be sent the
questionnaires for an interview. For selecting survey participants, random sampling would be
done, the employees of different fintech companies would be sent the survey forms on their
email addresses and requested to fill up the survey forms. Data collection is the study that
would be done through the internet. The internet would act as a significant source and tool for
connecting the researcher and the survey and interview participants (Schweidel et al, 2013).
The internet would be searched for different fintech companies in the UK. Google form
would act as an instrument in creating questionnaires for both survey and interview, which
the survey and interview forms would be sent through the internet.  The survey questions and
the interview questions that are sent to the mail address of the respondent can be filled up
online. The respondents would only have to click the right choices for the survey questions
(Schwartz et al, 2013).

The study in the fintech companies and the factors that are essential in customer retention
would provide beneficial information that can be utilised by fintech companies. The study
identifies the factors that are relevant to the retention of customers. In business retention of
customers is essential. The significance of customer retention is not limited to particular
industry; instead, it is of utility in all business (Schweidel et al, 2011). Therefore, it is not
only the fintech companies, but other businesses can also benefit from the knowledge.
Moreover, this study is concerned with risk identification and mitigation in terms of
challenges in front of fintech companies. Fintech companies are an emerging sector that has
the potential to grow. However, risks in the form of security have the potential to disrupt the
growth of the industry; therefore, it is essential to analyse these factors. The challenges of
security, technological changes and knowledge among the customers are significant issues
that would be covered in the study (Schwartz et al, 2013). Therefore, this study is significant
and of use to the fintech companies. The study would offer substantial information to the
fintech firms with regards to retention of customers. Customer retention is an essential
practice in all organisations. Retention of customers is dependent on many factors, and

6
organisations try to utilise all efforts in retaining their customers (Ascarza et al, 2016). It
cannot be denied that customer satisfaction is an essential aspect of the retention of
customers. Similar to all, businesses are concerned about retention. Fintech companies are
equally concerned about customer retention. Among the factors that influence customer
retention is the well-known fact that a customer-centric approach is a useful strategy (Schrift
et al. 2014). Being customer-centric helps an organisation in establishing strong relationships
with the customers; most importantly, customer-centric approaches help business in
providing customers with efficient services. A customer-centric approach makes it possible
for organisations to ensure customer satisfaction (Rust et al, 2015).

The fintech companies put much effort into acquiring and retaining customers. Fintech are
companies that offer financial services using software and modern technology. It is
noteworthy that Fintech is one of the fastest-growing sectors. The industry provides financial
services like payment, settlement systems, and remittance for users using technology
possessed by innovative non-financial corporations. It offers opportunities to access financial
services quickly and conveniently (Provost F et al, 2013). With growing interest in
investment, new start-ups investing in innovations, fintech companies are moving towards
accelerated growth. For fintech companies, the factors that are essential in retaining
customers are perceived value, gaining the trust of customers, meeting expectations and
excellent services. Customers look for value in what they purchase, whether it is a product or
a service. The lack of value in a product or service leads to the loss of customers (Perlich et
al. 2014). Therefore, it can be said that the lack of trust in the services provided by the fintech
companies can lead to customer loss. Several companies are offering similar services, which
give the customer an array of options to choose from. If the customer finds that they have a
better option than they might switch to the other options (Ovchinnikov et al. 2014).

Even though there are opportunities for fintech companies in the market, yet it does not mean
that customer retention is secure mainly because of issues like trust. The key issues that are
associated with customer retention in fintech companies are cybercrime, data breaches, lack
of knowledge in customers about user interfaces. Fintech companies in the UK have another
burden in the form of changing regulations (Nobidon F et al,2011). Rapid changes in
technology are another factor that is a critical challenge in the retention of customers in the
UK. Cybercrime and data breaches are potential security threats, and without a doubt, a
customer's first concern is the security of investment. Even though technology has advanced,
and there is software that protects from cybercrime threats, yet it is not easy to earn the trust

7
of the customers (Nitzan et al, 2011). The knowledge of the user interface is essential in
keeping the data safe. In the absence of such knowledge, one is vulnerable to threats. Security
is an issue that cannot be ignored, but the threat in proper security makes it challenging in
retention. According to Larsson (2018), one of the significant challenges in the fintech
companies is the asymmetry in the flow of information between the customer and retailer. In
simple words, it can be said that it is difficult for a fintech company to predict the level of
knowledge of the customer. The customer might not be well equipped with knowledge in
cybersecurity; however, it is not always possible for a fintech company to identify whether
the customer is aware of the security on it (Neslin SA, 2013).

However, managing the digital risks and improving customer service is essential in customer
retention in this sector. Security concerns are centred around two critical areas which are the
security of customer's money and information. Cybercrime in the form of hacking has
increased the problems of Fintech companies (Montoya et al ,2010). The innovations in
financial services that have resulted from the emergence of the fintech sector are notable. It
can be said that this digital disruptive medium has offered the customers a new outlook
towards the financial investment. With information that are available in digital firm it
becomes relevant that it offers convenient extraction of information. fintech sector in UK has
grown well and has offered potential services to the customers (Ascarza et al 2013).

The study in the fintech companies and the factors that are essential in customer retention
would provide beneficial information that can be utilised by fintech companies. The study
identifies the factors that are relevant to the retention of customers. In business retention of
customers is essential (McCarthy et al, 2017). The significance of customer retention is not
limited to particular industry; instead, it is of utility in all business. Therefore, it is not only
the fintech companies, but other businesses can also benefit from the knowledge.

Moreover, this study is concerned with risk identification and mitigation in terms of
challenges in front of fintech companies. Fintech companies are an emerging sector that has
the potential to grow. However, risks in the form of security have the potential to disrupt the
growth of the industry; therefore, it is essential to analyse these factors(Matz et al 2017). The
challenges of security, technological changes and knowledge among the customers are
significant issues that would be covered in the study. Therefore, this study is significant and
of use to the fintech companies. The study would offer substantial information to the fintech
firms with regards to retention of customers.

8
Literature Review
Introduction
Retaining customers is an essential requirement in business. It can be said that along the
years the UK fintech sector has replaced good progress. Several factors in the UK fintech
sector make it attractive. The consumer's perception of the sectors is also an essential factor
in the growth of the sector (Martens D et al, 2016). In this section, the various literature is
studied and based on that the fintech sector is discussed. The section contains a discussion on
the emergence of the fintech sector, factors influencing customer retention and the challenges
in the sector that confluence retention. A gap in knowledge is also discussed in this section. 

Customer
A customer acts as the backbone of any company or organization. The customer is defined as
a person who either receives a service a product from a particular organisation or a company.
In most of the cases the customer usually pays a certain value for the exchange of the services
to the company which eventually leads to the increase in the margins or the stock of the
company (Lim et al, 2015). Therefore as we can see, customers decide which path or the
direction the compamy or the organization is moving into. There are different types of
customers existing in the current business world. They are :

1. Existing Customers

The customers who have already purchased certain goods or services within a certain period
of time are called the existing customers. They are significant for the market of the company
because if the customers are satisfied initially then the relationship with the company and the
services can extend for long periods of time (Labrecque et al, 2016). Therefore maintaining
the existing customers is significant and much more less expensive than getting new markets
in the company because the new customers means forming the new trust and the bond with
the company from scratch and not all the customers are satisfied with the same products and
services (Kumar et al. 2015).

2. Former Customers

These are the customers who have had relationships with the company regarding a previous
purchase. They belong to the category of the former purchase as they purchased no products
or services in the present times (Kosinski et al, 2013).

3. Potential Customers

9
These are the customers who can potentially purchase the goods and services from the
company and eventually become potential customers in the company. In addition to these
types there are two more categories of customers called the Internal and the external
customers (Huang et al, 2012).

4. Internal Customers

The customers that are within a certain organization are called the internal customers. They
mainly include managers, staff, colleagues etc. A good relationship with the internal
customers is highly significant for the business to progress efficiently.

5. External customers

These are the customers who are outside the organization for the services and the products of
the company. The external customes form the majority of the portion of the company in terms
of profits and the growth of the company as eighty percent of the customers for a company
are considered to be external (Haenlein et al, 2013). A business can come into contact with
external customers at some of the occasions like: delivery of the product, while taking a
payment, feedback for the product, after provinding care, enquiry about the product etc.

The emergence of fintech companies in UK

 Emerging technologies are reshaping the financial services through innovative means.
Convenient and personalised services are a demand of the time. People's preferences are
personalised services (Ascarza, 2017). Such factors are compelling businesses to adopt a new
outlook. Fintech has undoubtedly evolved as an innovative and cost-effective technology.
From loans, insurance to mobile payments it has offered all types of services to the people.
Financial technology companies provide a wide range of financial services using technology.
These are start-up firms that disrupt existing financial models. It has facilitated offering
services to people (Guelman et al, 2015). For example, investment information and advice are
now available to people who are interested in investing. It can be said that financial
technology has increased access to information.  

Over the last year, the performance of the UK technology sector has been remarkable. The
tech sector has experienced rapid growth in the UK and the neighbouring nations. The
financial technology sector is also a result of the restrained growth in the country (Fader et al,
2010). UK has turned out to be a thriving Fintech capital of the world. Three essential factors
have influenced such growth which are the strength of the financial services in the country,
the nature of consumers in the country and the regulatory environment . The UK fintech
10
sector has a workforce of 76,500 people, and the revenue generated by this section is 6.6
billion pounds (Fader et al, 2010). The Fintech sector in the country benefits from the skill,
convenience, network support and the benefits offered by the sector. The attractive factors in
the UK fintech sector have become the reason for its growth. It is not only the technology but
also the services offered that have supported such growth (Fader, 2012). The customers are
necessarily an important factor that supports growth. It can be said that the technology-savvy
attitude of consumers in the UK is one of the primary reasons that has led to the growth of the
industry. Fintech companies that have developed in England have primarily created value for
people and firms. An exciting feature of Fintech has been the local enterprise partnership, the
involvement of local governments and leading organisations in driving growth in the local
areas. The array of services offered is not only aimed at all customers (Delanote et al, 2013).

Interestingly, the advice offered in the digital form attracts many people to use the services.
The applications and websites are different from the usual traditional consultation format.
The convenience makes it more attractive to the customers; a remarkable feature of the
fintech market in the UK is the breadth of sectors that it covers (de Fortuny et al, 2013). In
2018 the first FinTech Sector Strategy was released for helping this sector retain its global
position. This strategy involves appointments of Fintech envoys regionally. The UK's fintech
sector has emerged as a new and innovative business. The strength of the sector has attracted
global attention (Datta et al, 2015). Considering the UK it has already entered five fintech
bridge agreements with other fintech hubs in Singapore, China, Hong Kong, Australia and
South Korea. It is a valuable achievement for the UK fintech sector as it opens further
opportunities for growth. Customer retention is an essential variable as the risks or issues
associated with retention are significant barriers for fintech companies. This variable would
be judged by the responses of the survey (Chen K et al, 2015). Here again, the survey results
would help in understanding which of the risk factors are more prominent. It would allow the
researchers to understand whether the risks are an issue in customer retention. 

The qualitative analysis would help in understanding the situation a better way. The interview
responses would facilitate in-depth information obtainment from the managers (Chen et al,
2015). The analysis of the interview scripts would help in recognising the factors that
influence customer retention. It would also help in knowing the barriers in customer
retention. The interview would also facilitate combining across viable solutions to resolve
issues associated with customer retention in Fintech. 

11
Factors influencing customer retention in fintech companies 
Customer retention is considered to be an essential aspect in regards to fintech organisations.
Evaluation of the companies’ performance in terms of customer retention has also become
famous as this helps in discovering more strategies and techniques to develop the companies.
It is an essential factor in today's competitive environment. Various factors in the fintech
sector impact customer retention. These include service quality, personalisation and security
influences customer retention in fintech companies. It is analysed that service quality plays a
vital role in maintaining customer loyalty as well as retention. It is essential to meet the
customer's requirements and expectations in order to retain them. In case the customer feels
displaced due to decreasing satisfaction in terms of the services provided by the company, it
is essential to offer higher service quality in order to retain them. The brand image of the
company is equally an essential factor that helps in retaining the customers. Getting
associated with a fintech company and continuing the association highly depends on the
brand name and reputation that the company has in the market. It helps in attracting new
customers as well as retaining them effectively. Perception of the value of the products and
services is another factor that influences customer loyalty. In this context, it is vital to make
the customer feel that they are valued and fairly treated. This makes them satisfied with the tr
for fintech companies, the factors that are essential in retaining customers are perceived
value, gaining the trust of customers, meeting expectations and excellent services.

Customers look for value in what they purchase, whether it is a product or a service. The
lack of value in a product or service leads to the loss of customers. Therefore, it can be said
that the lack of trust in the services provided by the fintech companies can lead to customer
loss. Several companies are offering similar services, which give the customer an array of
options to choose from. If the customer finds that they have a better option than they might
switch to the other options.  In order to increase customer retention, it is essential to build
strong relationships. In this context personalisation as well as empathy plays an important
role. However, understanding social cues and adapting them in order to build trust and gain
loyalty from the customers is not an easy task for fintech companies as it is not easy to scale
these factors digitally. Another challenging aspect that creates difficulty for the fintech
companies is maintaining security as the customer needs to face breach of personal and
financial information influencing them in various ways. Transactions and also increases their
satisfaction level. 

12
Challenges for Fintech in customer retention 
With changing time and preferences of the customer, the financial sector is focusing on
customer retention and investing in this area.  The sector is considered to have inventories
related to customer retention in a limited manner as the available products and services are
very less. In this context, the fintech organisation needs to face various kinds of challenges
that have a direct impact on customer retention. One of the challenges is highlighting the
value of the products and services before utilisation by the customers. It has been analysed
that the financial products are intangible, and evaluating the value of the products before
using it is not easy for the customers. Therefore, this creates a challenge for the fintech
organisation to make the customer e value the value before the purchase as well as finding
ways to make them buy more is also very difficult. Another challenge is dealing with the
increasing demands of the customer in terms of features and security associated with the
products and services of the fintech organisation.

Today the customers expect the companies to embrace all data available in order to tailor
solutions that help in effectively fulfilling their requirements. However, developing systems
that can gather as well as assess structured and unstructured data is a challenging task for
fintech organisations. In order to increase customer retention, it is essential to build strong
relationships. In this context personalisation as well as empathy plays an important role.
However, understanding social cues and adapting them in order to build trust and gain loyalty
from the customers is not an easy task for fintech companies as it is not easy to scale these
factors digitally.  Another challenging aspect that creates difficulty for the fintech companies
is maintaining security as the customer needs to face breach of personal and financial
information influencing them in various ways. It has a direct effect on their loyalty towards
the organisation in an extensive manner. Cyber risk is another challenge that impacts
customer loyalty, and with the rise in new technologies and business models, it is getting
difficult to control cyber risks. In this section, the various essential aspects of the fintech
sector are described (Ali OG et al, 2014). The themes have been highlighted in the concept. It
can be said that the fintech sector has emerged as a growing innovative service in finances.
The customer-centric approach and personalised services offered have helped in making the
sector a revolution. However, it was also found that the sector is not free from challenges.
These challenges are mostly in the form of security issues and technical knowledge gaps in
people. Even if people are technology savvy, yet security frauds are difficult to restrain.
These challenges can become a problem in the retention of customers.

13
The gap in the literature
Several types of research on the factors that impact customer retention can be found.
Customer retention in the fintech sector is a topic that is discussed in many studies; there are
limited studies that are concerned with customer retention factors in the UK fintech
companies. There are various impacts on the cost of losing a customer. They involve :

1. Loss of Revenue

The loss of the current revenure is the most important factor in the loss of customers in a
company. Even though they might seem very insignificant or petty in the beginning, the
results can be desastrous in the end of the year of sales.

2. Loss of Reputation

Whenever a customer is satisfied the customer informs the other people about the quality of
the service and product to the other potential customers which can significantly increase the
number of customers to the company. But in case of loss of customers the words of
dissatisfaction travels faster to the other potential customers and even the current customers,
therefore the customer loss can often lead to the loss of reputation for the company.

3. Loss of business

Eventually due to the loss of revenues and the loss of reputation it can further lead to loss of
the existing business. Therefore the loss of customers can bring various negative effects to
the company.

This study would cover the knowledge gap by discussing customer retention in the UK
fintech companies. Also, this study would discuss the problems and challenges in the fintech
sector. The ways of resolving the issues in the fintech sector to facilitate customer retention
would be covered in the study. The issues of security as a challenge would be discussed in the
study. Apart from privacy, another critical factor in research is data protection. A researcher
needs to be careful so that the data collected in research are kept safely. Any data obtained in
the research would be kept in the safe custody of the researcher. It would ensure that apart
from those involved in the research, no other person would be given access to the data. The
data stored in the form of soft copy would be protected through a password. In the interview

14
transcripts, the name of the participants or any other information that can reveal the identity
of the participants would not be used.  The use of google forms would ensure that neither
survey repentant names nor interview respondents’ identity is possible.

Method
Participants
A random sample was carried out from the random number of participants for our survey, and
the total number of participants in our survey was 60. The participants' population is workers
who work in the IT, banking and other industries. In order to carry out the survey online,
many social networking sites such as LinkedIn, Gmail, Face Book, Whatsapp, etc., do not
have a course credit or pay per fill, in the circumstances under which participants usually
participated. This gives consumers a full opportunity to develop banking services. The age
group of people between 20 and 50 can be considered to be between 30. The average
population age of the sample was approximately 33. The default age gap is 1.56. The
women's group is about 19 and the men's group 12. Since the survey is entirely random, we
can also verify the gender that is participating in the survey.
Design
 The dependent/predictor variable(s) in our survey are Can a lack of trust in the
services provided by the fintech companies lead to customer loss?, Do you feel that
rapid changes in technology are causing complications in customer retention?, Does
your company take an initiative for security threats like cybercrime and data
breaches?, Do you have any software for asymmetry in the flow of information
between the customer and the retailer?, Does your company provide proper quality in
services for maintaining customer loyalty as well as retention?, Do you have any
feedback system for gathering the opinions and suggestions of the clients?, Do you
attract customers with new products and services for gaining customer loyalty?, Does
your company try to highlight the value of the products and services before utilization
by the customers?, Does your company embrace all the available data to tailor
solutions that help in effectively fulfilling customers' requirements?, these are all the
predictor variables that we need to predict.
 The independent variables present in our data are Age, Gender,UserName,and
Timestamp.
 It is an experimental design that is designed to know the factors affecting the
customer retention
 For this survey no participants was not assigned in groups for completing the survey,
all participants are completed the survey individually.

Materials
• In questionnaires, 11 questions are used
• The measurement assessment is focused in answering the questionnaires on the options
given to the user.
• The following instructions are given to the candidates during the questionnaires.

15
 1. Based on your company's facts, please complete the following questionnaire.
2. Weightage is used in all questions. Any questions please answer. Please tick the 'not
applicable' or write the same if any issue is not applicable to your business.
3. The questionnaire includes multiple questions, for example:
(a) Some problems require unique company details, e.g. Email, address, name.
b) Some questions have a category Yes/No where you can pick a single option, e.g. can a
lack of trust in the services provided by the fintech companies lead to customer loss?
c) Some questions allow more than one choice to be chosen, e.g.
What is your sex? What is your sex?
Male
Female
4. For the list of choices, please tick marks the check boxes.
5. If required, you can use additional sheets to respond to any query. Mention also in
additional books the question number.
Procedure
• Participants can answer details on options and fill in blanks on certain questions. The
options are given to certain questions and the individual must fill out the blanks in
compliance with the specifications.
• The spectrum of potential query outcomes is like "Yes" or "No," male or female.
• No subscales for the calculation are available in our sample.
• All our survey responses must be organized, standardized and qualitative interpretation
must be made of these results, since all of these data are collective formats.
• Participants can answer details on options and fill in blanks on certain questions. The
options are given to certain questions and the individual must fill out the blanks in
compliance with the specifications.
The method to complete the study is described below and certain steps to complete the survey
are followed and discussed below.
• Scope of potential results
• The questionnaire is first prepared in three segments: technical, marketing, communications
and digital banking based on our research target. For each section, the questionnaire prepared
is not identical
• After that, we must invite people to participate and express their opinion about the
questionnaire by identifying the qualified respondents.
• Meaning when sending letters to each participant to get fast answers.

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• In order to collect all responses and evaluate the findings, we must determine the final dates
of acceptance of the entire survey.
• This is the survey finishing process.
Qualitative analysis
It is not possible to conduct quantitative analysis here and we are continuing with qualitative
analysis based on the article by Braun and Clarke (2006). By using surveys of various groups
of individuals, the data is collected and data is collected. On this data, a qualitative analysis
will be performed.
The paper by Braun and Clarke (2006) is a way to define, evaluate, organize, explain, and
report themes identified in a data set. Via conducting different surveys with different
individuals, this file is gathered and we will review these data with various questions.
Thematic analysis is performed here with the help of online surveys. Below, we discussed the
brief procedure and its implementation, asked the users in the field, and now we have a vast
amount of audio, feedback, photos, pictures and fascinating experiences. It is difficult to
know when it will begin to make sense of all the details. All of this data can be confusing.
Here, the models and subjects that reflect the most important aspects of our data, which can
be used as the basis for individuals, users and design choices, can benefit from the uncertain
information. We then decide whether we were selected by people because we conducted
surveys online. It may be a simple or complicated process, depending on the project scope,
but it is crucial that we follow the same rules for the analysis of our surveys whatever our
project is. While we can see things very clearly and want our observations to be adopted, a
thorough review is crucial to our findings confirmation. There's a lot going on in a survey
case and knowing what people say and do during our surveys is not consistent with our
previous expectation is easy to ignore. A comprehensive analysis helps other people to
correctly understand how we draw our various conclusions about our participants, so that our
results can be more reliable. It takes time to assess our performance, especially if our goal is
detailed and exploratory. However, if our time is limited, it is always easier to restrict our
investigation than to go through the reviewing process and to act directly on our findings.
The thematic analysis discusses how to go from the messy details to a map of the most
significant data issues an iterative approach

Results
We need to determine the factors impacting customer retention of fintech company in uk, and
to determine those factors we conducted one survey and we are going to determine which
factors are more affecting the customer retention. On behalf of that, in our survey the first
question is Can a lack of trust in the services provided by the fintech companies lead to
customer loss? And the responses saying yes. For total 60 records, 49 people are saying yes
and 11 participants are saying no which means Lack in trust in the services definitely leads to
customer loss because the customer not trusting the company because of its policies, services
and other things. This we can observe from below figure.

17
Also, do you attract customers with new products and services for gaining customer loyalty?
And majority of participants are supporting this statement. Which means to gain customer
loyalty, Fintech industry should introduce new products and services for gaining customer
loyalty, it is also like gaining customer attention which really helpful to growth of the
industry as well. These results we can observe from below snap.

Similarly, if we observe the responses for do you feel that rapid changes in technology are
causing complications in customer retention? And for this also we are getting answers as yes
itself. With help of rapid changes in technology will enhances the simplicity in services and
saves a lot of time to user or customer. Rapid change in technology will help the industry to
stop the customer retenteion.This we can observe from below figure. Complications
definitely leads customer to make confuse. So we need to take care of these complications
and make simple GUI for customer retention.

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On Next, Do you have any feedback system for gathering the opinions and suggestions of the
clients? And many participants are saying Yes, which means Fintech industries should accept
the suggesting or feedback from their customers which really helpful for the company for
improving the customer satisfaction and expand their business also. If they didn’t accept the
suggestions from customers there will be no chance of improvements in an organization
further leads to failure of the system. This can be observed from following figure

On to the next, do you have any software for asymmetry in the flow of information between
the customer and the retailer? And the answer is yes again. By using the software to avoid
asymmetry in the flow of information we can make the data organized format. So the
companies are using software to avoid the asymmetry present in the data, and organizations
can make that in a symmetrical relationship format. These results can be observed from
below snap.

19
The next question posed to participant is Does your company embrace all the available data
to tailor solutions that help in effectively fulfilling customers' requirements? And for this
question, majority of people said yes. Because every organization is ready to accept feedback,
work on it and make good results from the data and get solutions from the data to fulfill the
customer requirements and also to satisfy the customer requirements. These results we can
observe from below snap. Few of participants answered as no for this question, those
organizations are not utilizing the data provided by customers which leads to be a part of
failure in organization.

The next question from Questionnaire is Does your company provide proper quality in
services for maintaining customer loyalty as well as retention? And for this question majority
of people answered yes. Around 85% of people answered yes and rest of the participants
answered as no. It means 85% of customers are utilizing the proper quality in services and
85% of organizations maintaining customer loyalty and customer retention as well. This we
can observe from below figure.

20
The next question from Questionnaire is Does your company take an initiative for security
threats like cybercrime and data breaches? And we get mixed responses for this question. The
majority of answers are yes which means company is protecting the data and customer
privacy. These organizations are keep updating their security settings to avoid data breaches
which leads to damage in user privacy. This is really a good asset to organization and
customers will trust the organization and customers are loyal towards those types of
organization. The results for this can be observed from below figure.

The next question from Questionnaire is Does your company try to highlight the value of the
products and services before utilization by the customers? And the majority of people
agreeing this statement. It means to improve the growth of the company, they are highlighting
the unique products and services offered by them. This really big asset to company to attract
the customers. Out of 60 participants 46 people are accepting this statement it is around 76%.
Remaining companies should concentrate on this to improve their growth and attract
customers towards their company. These results we can observe from below graph.

21
Finally from our findings we can say that companies having good amount of trust with their
customers and they are not conducting any fraudulent activities. If any fraudulent or
suspicious activity identified in the company leads to lack of trust and customer loss. Rapid
changes in technology are causing complications in customer retention because of difficulties
in the technology and sudden changes in the technology and all participants accepted this
statement. Companies are taking an initiative for security threats like cybercrime and data
breaches to avoid data loss and providing security to the customer data. Majority of
companies are maintaining data privacy and avoiding data breaches for the company. Also to
avoid asymmetry in the flow of information between the customer and the retailer companies
are using some kind of software’s to make that data symmetry and to make all activities in
the flow. Companies are providing proper quality in services for maintaining customer
loyalty as well as retention. Most of the companies are having feedback system for gathering
the opinions and suggestions of the clients so that they can work on the feedback to improve
the quality in their work and in service as well. Most of the companies are attract customers
with new products and services for gaining customer loyalty and the participants are
accepting this statement. Many companies are trying to highlight the value of their products
and services before utilization by the customers and promoting their services. Most of the
companies are embracing all the available data to tailor solutions that help in effectively
fulfilling customers' requirements.

Discussion
Fintech firms invest all of their time attracting potential clients and investing money into
them. Yet Fintech firms also need to invest in consumer acquisition with the increase in
consumers switching from the banking industry to insurance and then shopping. Typically,
the industry has inventories that are confined to the same kinds of goods and services. And
because most financial goods are subjective, it may be a struggle to introduce the actual
worth of products to consumers before they buy and discover opportunities to consume more.
There would also be a need to encourage innovative, sensitive and German-specific goods
and services that can draw buyers that are not currently searching for new offerings.
Customers now have greater aspirations than ever before, and they want organisations to
accept all relevant data and customise strategies that will satisfy their needs(Guelman et al,
2015). Thus, how FinTech firms will satisfy these growing demands and increase the
retention of consumers.

22
Customer retention is the strategic mechanism of a series of operations that can be leveraged
by company to maximise the amount of returning clients. This method helps enterprises to
both have and extract more profit from their current client base. Fintech businesses also need
to build technologies that can capture and analyse organised and unstructured data,
algorithms to identify behavioural trends and consumer propensity, and computational
capabilities that can then feed that data into dashboards in order to do so. It is therefore
important for these initiatives to set up a consolidated consumer data platform (CDP) to
incorporate charged and owned data from across networks (Bazeley, 2018). Unlike
conventional CRM systems, these CDPs have built-in deep learning automation to rinse
internal and external data, link a single consumer through computers, cookies, and ad
networks, and facilitate the implementation of campaigns across touchpoints and channels in
real time.
FinTech Companies Can Learn More from E-Commerce
E-commerce businesses are successful in delivering cohesive device-wide shopping
experiences, particularly with mobile-first strategies in mind. Yet it is still a major obstacle
for the e-commerce sector to maintain current clients. Earlier, marketers were more focused
on tried-and-true marketing techniques of consumer acquisition. Yet the emergence of the
modern consumer age has contributed to the need for advertisers to adopt some new
campaign tactics. As the advertisement expense continues to ascend a ladder, it is important
for the organisation to turn clicks and views into revenue.
Therefore, e-commerce firms employ professionals with analytical experience who know
how to implement best-in-class research software to expose consumer behaviour and demand
insights. That can then transform these experiences into a user-driven shopping interface that
can give both current and new consumers continuous value.
However, maintaining a strong degree of consumer satisfaction ensures that an e-commerce
enterprise will save time and resources in the long run. A two percent rise in consumer
satisfaction has the same impact on the bottom line of the business, given evidence and
figures, thus decreasing other expenses by ten percent. Fintech firms may also find their
company increasing over time by concentrating their attention on retaining new clients, while
spending on ads and other advertisement campaigns.
Recommendation
 With the UK government and the financial services authorities viewed as quite
progressive in promoting the evolution of fintech, the UK is deemed a global centre
for fintech. Via fintech bridges, other countries such as China, Korea and India are
willing to collaborate with the UK to learn and foster innovations in their own
markets. There is, however, a need for the United Kingdom to develop a single and
consistent stance on fintech that will help allow the overall industry to better advertise
itself as a strong fintech destination and a source of fintech services.
 Owing to the usage of emerging technology (such as telematics, IoT, ICOs, AI and
DLTs) and analytical methods, common activities in the provision of finance,
insurance and wealth management services are evolving with the growth of fintech.
Fintechs also include historically underserved and unserved clients with non-standard

23
 goods. Fintechs also obtained funding and advice from the PRA (through the Current
Bank Start-up Unit) and FCA (through regulatory sandbox and Project Innovate).
 Fintechs, though, will profit from greater transparency about what enforcement looks
like and what the Fintech industry's core behaviour, organisational, risk, data
protection and management criteria are.

Conclusion
Here we need to find out all the factors that are affecting customer retention of fintech
company in uk, to get to know about this we conducted one survey with multiple questions
and the participants are in different positions with different designations. This survey is
conducted in online and the brief summary about the review is discussed here. We can
observe that most of the companies having well trust with their customers, clients as well and
they are not conducting any fraudulent activities. If any fraudulent or suspicious activity
identified in the company leads to lack of trust and customer loss. Rapid changes in
technology are causing complications in customer retention because of difficulties in the
technology and sudden changes in the technology and all participants accepted this statement.
Companies are taking an initiative for security threats like cybercrime and data breaches to
avoid data loss and providing security to the customer data. Majority of companies are
maintaining data privacy and avoiding data breaches for the company. Also, to avoid
asymmetry in the flow of information between the customer and the retailer companies are
using some kind of software’s to make that data symmetry and to make all activities in the
flow. Companies are providing proper quality in services for maintaining customer loyalty as
well as retention. Most of the companies are having feedback system for gathering the
opinions and suggestions of the clients so that they can work on the feedback to improve the
quality in their work and in service as well. Most of the companies are attract customers with
new products and services for gaining customer loyalty and the participants are accepting this
statement. Many companies are trying to highlight the value of their products and services
before utilization by the customers and promoting their services. Most of the companies are
embracing all the available data to tailor solutions that help in effectively fulfilling customers'
requirements.

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