Transparency—a secret growth lever for financial service providers

Transparency has evolved from a nice-to-have to a business imperative in financial services. Today's customers—both individuals and small businesses—expect complete openness from their financial providers.

The stakes are high: Swift reports that 71%of consumers would abandon a financial service provider over hidden fees, while 69% of SMEs indicate they wouldn't return to a provider who failed to clearly communicate fees.

But true transparency extends far beyond pricing. Customers demand to know precisely when their payment will arrive, where it is in the journey and exactly how much will reach the recipient. This level of visibility has rapidly become a competitive differentiator in the market.

The message couldn't be clearer: transparency directly impacts a provider's reputation and bottom line. So how can financial institutions rise to this challenge?

Identifying precise delivery times

“When will my payment arrive?” This basic question demands an answer in today’s fast-paced world. With traditional payments processing involving multiple steps and intermediaries, delays and errors naturally multiply.

Traditional payment systems are like relay races with too many runners—each handoff between intermediaries creates another opportunity for delay or error. The consequences? A striking 44% of consumers and nearly half of all small businesses (49%) say they'll abandon a provider after just one delayed payment experience.

The days of vague delivery windows and "2-3 business day" promises are over. Modern customers expect precision, not approximation. Financial providers who deliver exact arrival times aren't just offering convenience; they're building the foundation of trust that transforms one-time users into lifelong clients.

“When will my payment arrive?” This basic question demands an answer in today’s fast-paced world. With traditional payments processing involving multiple steps and intermediaries, delays and errors naturally multiply.

Clearly establishing how much will reach the beneficiary

Imagine you’re sending a payment to a supplier and only part of the payment is received. This scenario creates frustration and erodes trust.

Customers need certainty about the exact amount that will reach their intended recipient. This presents challenges when transactions involve multiple intermediaries, each potentially taking their cut along the way.

Yet providing this certainty has become one of the most valued qualities in payments, standing alongside speed and affordability as a core customer expectation. This isn't merely about business models or delivery mechanisms—transparency has become the very foundation of a successful payments provider's ethos and is essential for building lasting trust and loyalty.

Tracking the payment journey

In an era where customers can track everything from their food delivery to immigration applications, the inability to follow payments in real-time leaves financial providers at a significant competitive disadvantage.

Effective payment tracking requires more than just visual representations of transaction journeys. It demands robust backend infrastructure, seamless systems integration, standardised messaging protocols and real-time data sharing capabilities. Many banks struggle with these requirements due to fragmented legacy systems, manual processes and the complexity of coordinating across multiple intermediaries.

With 64% of consumers and 66% of SMEs saying they would refuse to return to a provider that fails to offer payment tracking capabilities, the pressure continues to mount as customer expectations for tech-driven payment experiences increase.

The growth opportunity: increasing customer retention and lifetime value

For financial institutions that successfully implement end-to-end payment transparency, the rewards are substantial. Clear pricing, visibility, and control can improve customer retention by up to 59% for consumers and 61% for SMEs, helping establish enduring relationships.

What’s more, by addressing these fundamental payment needs, providers create opportunities for cross-selling additional financial products like mortgages, loans, and savings accounts.

Today's customers expect a seamless, transparent payment experience and providers who deliver this stand to not only retain current customers but also unlock new revenue streams through increased service adoption.

Clear pricing, visibility, and control can improve customer retention by up to 59% for consumers and 61% for SMEs, helping establish enduring relationships.

Achieving transparency through partnership

But here’s the catch: many banks lack the infrastructure to provide this level of transparency to consumers and SMEs. The good news — this is all achievable without a major technical overhaul.

The solution lies in banks partnering with infrastructure providers that have direct connections to faster payments systems and a business ethos centered around transparency.

At Wise Platform, transparency is at the core of how we empower the world's top banks and fintechs to deliver an exceptional customer experience. Our focus on building direct connections into faster domestic payments systems reduces the number of intermediaries in the payments process, empowering our partners with greater visibility and control over the entire transaction lifecycle — from fees to tracking and delivery. This ensures both the bank, and its customers, have precise clarity on the beneficiary's final payment amount, as well as the payment's current status and delivery timeline.

Transparency poses a significant growth opportunity for financial service providers that get it right, helping banks to stay competitive, increase customer loyalty and trust, reduce payments churn and extend lifetime value.

Discover how we can help your bank lead the charge for transparency: www.wise.com/platform