Communication as a Tool for Trust_LB.pdf

Good communication, in this context, involves several intertwined behaviours and practices.
It starts with transparency. When customers understand what a fintech does with their data, what fees they are paying, how long a transaction will take—or why a transaction has failed—their confidence in the service grows. Eric Hannelius often observes that users tend to trust firms that admit complexity, rather than promise perfection. When errors happen, acknowledging them quickly and laying out what is being done builds trust more than delaying or obfuscating.

1. Communication as a Tool for Trust. What Modern Fintech Leaders
Must Understand

In the fintech world, where interactions often occur through code, apps, and screens,
communication holds more weight than many assume. Miscommunication can erode
confidence faster than a minor glitch; good communication can build loyalty in ways that
product features alone cannot sustain. Eric Hannelius, CEO of Pepper Pay, has
emphasized that in a landscape of digital services, trust is earned with clarity,
consistency, and empathy not by marketing gloss, but through how a company talks,
listens, and responds.
The Stakes of Communication for Trust in Fintech.
Several trends illustrate why communication has become foundational in fintech.
Customers have greater expectations for data security, for how their personal
information is handled, and for fairness in fees or transaction processing. Regulatory
scrutiny has increased globally; authorities demand clear disclosures, transparent
policies, and rapid reporting when things go wrong. Meanwhile, competition among
fintech firms has wilted margins and raised the bar for what counts as a trustworthy
brand.
A study from Esendex found that in the UK and Ireland, over half of consumers trust
product-renewal or tailored messages from financial organizations, but a large majority
would abandon a company if they felt communication quality slipped. Among younger,
digitally engaged users this response is stronger. Clear, well-timed, relevant
communication is no longer optional. It’s part of how fintechs survive reputational risk
and build credibility.

2. What Good Communication Looks Like?
Good communication, in this context, involves several intertwined behaviours and
practices.
It starts with transparency. When customers understand what a fintech does with their
data, what fees they are paying, how long a transaction will take—or why a transaction
has failed—their confidence in the service grows. Eric Hannelius often observes that
users tend to trust firms that admit complexity, rather than promise perfection. When
errors happen, acknowledging them quickly and laying out what is being done builds
trust more than delaying or obfuscating.
Another dimension is consistency. Messaging must align across channels (app
notifications, emails, user support, help pages, marketing) and over time. If what is
promised in advertising does not match what people experience in onboarding or
support, trust falters. For fintechs scaling across regions or regulatory environments,
internal alignment in what is communicated becomes increasingly challenging, yet
increasingly important.
Then there is tone and empathy. Financial services touch on deeply personal matters—
income, risk, life events. Messages that feel human, respectful, and aware of stress or
worry can reduce friction. Eric Hannelius remarks that Pepper Pay tries to anticipate
moments when users feel uncertain (for example, during transaction delays, or when
security checks occur) and uses proactive messaging to reassure. That approach has
reduced support escalations and increased satisfaction scores.
Communication Channels, Speed, and Security.
Selecting the right channels matters. Real-time alerts, push notifications, transaction
summaries, and SMS messages are useful for urgent, operational items: failed
transfers, fee changes, security warnings. Informative emails or in-app messages serve
for deeper content: policy changes, privacy disclosures, features updates.
Security must underlie every interaction. Poor encryption or unclear security practices
erode trust quickly. Public incidents of fraud or data breaches get amplified; customers
expect fintech firms to communicate about risks and protections clearly and proactively.
According to research, close to half of consumers cite security concerns as a major
barrier to fintech adoption. Firms that explain how they protect users, physically and
digitally, gain ground in trust.
Speed of response matters when things go wrong. Slow replies or vague statements
often worsen a minor issue. When communication is prompt, precise, and shows that
the company is taking action, customers respond with forgiveness more often than with
anger.
Eric Hannelius frames communication as part of operational strategy. Feedback loops
with customers, transparency about system health, and regular updates when features
or policies change are standard parts of their practice. He has said that a fintech that
fails to inform users in time about disruptions or policy changes will suffer loyalty losses
more difficult to recover than any one bug or outage.
Eric Hannelius also sees internal communication as tightly linked to external trust. When
employees understand why decisions are made, they are better able to explain those

3. decisions to users or partners. Internal misalignment leaks out in inconsistent
messaging, which customers notice, especially when policies seem contradictory or
when customer support gives mixed answers.
Challenges in Using Communication Well.
Some things complicate efforts to build trust through communication. Legal or regulatory
constraints sometimes force vague language or delay disclosures. Translating complex
technical or legal material into plain language often requires effort many fintechs under-
invest in. Over-communication risks fatigue, too many alerts or messages can
overwhelm users or make them tune out.
Also, cultural expectations differ. What counts as clear in one market may be confusing
or alarming in another. Tone, formality, and norms around privacy vary. As fintechs
scale globally, they must adapt messages to local expectations without losing
consistency.
Measuring Communication’s Impact.
To understand whether communication efforts are working, fintech leaders need
feedback. Surveys focused on trust, user satisfaction, clarity of messages, net promoter
scores (NPS), and support ticket trends tied to misunderstanding are helpful. Tracking
retention or churn around key communication changes (e.g. after policy change, fee
disclosure, security update) reveals whether trust gains or losses follow.
As fintech continues to evolve—embedded finance, open finance, regulatory demands,
AI‐driven features—communication will become more integral. Expectations rise: people
will expect firms to be upfront, transparent, accessible. Regulatory regimes in many
jurisdictions are moving toward requiring disclosures about data use, security practices,
algorithmic fairness, and ethical AI. Firms that anticipate those standards and
communicate accordingly will avoid being forced into reactive positions.
Eric Hannelius believes the companies that succeed over the next decade will be those
that treat trust as a strategic asset, baked into communication, culture, product, and
policy. Communication won’t be a department’s job alone; it will steer product design,
user flows, customer support, and leadership behavior.
Trust and communication in fintech are tightly bound. Clear, consistent, honest
communication builds confidence; when communication fails, reputations can unravel.
For business leaders and fintech professionals, treating communication as a tool—one
that shapes policy, product, perception—is a path toward deeper loyalty, better
customer experience, regulatory alignment, and healthier growth.
Communication done well reduces friction, fosters alignment, prevents
misunderstanding, and makes customers feel heard and safe. For Pepper Pay and
similar companies, maintaining trust means being transparent, responsive, and willing to
show both competence and care. In this era, those qualities matter at least as much as
technological innovation.