25% of users who do not receive their card on time or on the first delivery attempt cancel their request. Delays in deliveries, last-mile problems and lack of traceability are some of the challenges faced by these companies. All of this ends in the loss of an enormous opportunity cost. Does it ring a bell to you? If not, don't worry. Here we break it down.
Main logistical challenges of a fintech business
Fintech companies rely on an efficient logistics operation to ensure that users receive their physical cards without delay, ensuring fast and frictionless activation. Some of the key challenges include:
- Delays in delivery: Users expect to receive their cards quickly to start using their accounts. If the wait is too long, they may lose interest or look for another option.
- Last-mile issues: Wrong addresses, absence of the user or delivery failures create additional costs and frustration. Each failed delivery attempt reduces efficiency and can cause the user to abandon the service.
- Lack of follow-up: If users can't see the status of their order in real time, they may feel uncertain and distrustful of the service.
- Managing multiple shipping companies: Many fintechs work with multiple messaging providers, which can complicate coordination and increase costs.
- Insufficient Stock: Not having enough cards available can lead to shipping delays and affect the user experience.
- Successful deliveries on the first attempt and compliance with the ETA (Estimated Delivery Date): This is the delivery commitment date proposed by the logistics provider in the follow-up that the end customer sees. This date is based on the average time it usually takes for the package to arrive in a specific zip code.. If an order doesn't arrive on the first attempt, there are extra costs and delays that affect user activation.
What role should fulfillment play?
Fulfillment plays a crucial role in the success of fintechs, as it ensures that physical products, such as bank cards, reach users efficiently and without friction. In this sector, fast delivery is key, as a user who receives their card quickly is more likely to activate it and start using financial services.
Having your own technological team is a plus:
A key factor that sets Cubbo apart is its own technology team. In an environment where fintechs are constantly evolving, having a fulfillment provider that has its own technological system is a competitive advantage. The needs of the financial sector change rapidly, and it's crucial that logistics can adapt with the same agility. Cubbo continuously develops and improves its technological tools, ensuring that fintechs have a flexible and scalable solution to face any challenge that comes their way.
How does Cubbo solve these challenges?
Cubbo offers a specialized fulfillment service for fintech that optimizes logistics and improves the user experience. Here are some of the solutions it provides:
- Proven Efficiency: 97% of cards are delivered within the promised time, reducing the risk of abandonment and improving the activation rate.
- Real-time technology: Our platform allows you to see the status of your order in real time so that the user is certain when their order arrives and the first delivery is successful.
- Own technology equipment: We speak the same language as fintechs, allowing us to adapt to their needs without having to look for another logistics provider. In less than a week we joined Api and started working.
- Faster deliveries: We offer same-day deliveries in Mexico City and an average time of 1.6 days nationwide, ensuring speed and efficiency. The sooner we arrive the sooner the card is activated.
- Choosing the best carrier: We automatically assign the most efficient carrier according to the area and type of service, optimizing costs and delivery times. You can choose the level of service depending on the area. Where the lifetime value is higher, you should invest a little more, right?
- Total availability: We operate on weekends and holidays, allowing fintechs to keep their service active without interruption.
The Impact of Fulfillment on Fintech User Conversion
Efficient fulfillment is key to improving the conversion of fintech users. Fast and accurate deliveries build trust and reduce friction in customer activation. In addition, real-time traceability allows users to know the status of their shipment at all times, reducing uncertainty and improving the experience. The combination of optimized logistics management with advanced technology ensures that fintechs can focus on their growth without worrying about distribution problems. With Cubbo, companies in the financial sector can improve their operational efficiency, reduce logistics costs and, above all, increase their activation and conversion rates.
The Flow starts when your customers activate their card
The success of a fintech not only depends on the quality of its financial services, but also on the efficiency with which it delivers its physical products, such as bank cards. An optimized fulfillment strategy can make the difference between a user who activates their account immediately and another who leaves the process due to a poor logistics experience.
In Cube, we understand these challenges and offer solutions adapted to the needs of fintechs, ensuring fast, reliable and efficient deliveries. If you're looking to improve your activation and conversion rate through frictionless logistics, contact us and find out how we can help you optimize your operation.
