## Fintech

### Common business problems & personas

#### Key business problems
- **High fraud rates** – Sophisticated fraud attempts and false positives
- **Poor compliance tracking** – Difficulty meeting regulatory requirements
- **Low transaction success rates** – Payment failures and processing issues
- **High customer acquisition costs** – Expensive to acquire and verify customers
- **Poor user trust** – Users concerned about security and data privacy
- **Complex onboarding flows** – Lengthy KYC/AML processes causing drop-offs
- **Low feature adoption** – Users not utilizing advanced financial features
- **Regulatory reporting challenges** – Difficulty generating required reports

#### Primary personas & their pain points

**Risk & Compliance Teams**
- **Pain points:** High fraud rates, poor compliance tracking, regulatory reporting challenges
- **PostHog solutions:** Fraud detection patterns, compliance monitoring, regulatory reporting automation, risk assessment analytics

**Product Managers**
- **Pain points:** Poor user trust, complex onboarding flows, low feature adoption
- **PostHog solutions:** User trust analysis, onboarding optimization, feature adoption tracking, user experience improvement

**Engineering Teams**
- **Pain points:** High transaction failure rates, poor API performance, security concerns
- **PostHog solutions:** Transaction monitoring, API performance tracking, security event monitoring, error rate optimization

**Customer Success Teams**
- **Pain points:** High support volume, poor customer satisfaction, complex issue resolution
- **PostHog solutions:** Support ticket analysis, customer satisfaction tracking, issue resolution insights, customer journey optimization

**Growth Teams**
- **Pain points:** High CAC, poor conversion rates, difficulty measuring customer LTV
- **PostHog solutions:** CAC analysis, conversion funnel optimization, customer LTV measurement, growth loop identification

### Key metrics & PostHog

#### Transaction Volume
**Importance:** Measures the total number or value of transactions processed by the platform. This is a fundamental indicator of a fintech product's adoption, usage, and overall scale. It directly impacts revenue and is a key signal of market traction and business health.

**PostHog approach:** Track all financial transaction events like `transaction_initiated`, `transaction_completed`, and `transaction_failed` with detailed properties such as transaction type, amount, currency, and user segment. Use dashboards for real-time monitoring of transaction volume and success rates. Correlation analysis can help understand what user behaviors lead to more transactions, and alerts can be set for unusual spikes or dips in activity. Non-technical users can build funnels to analyze the transaction flow and identify drop-off points without writing any code.

#### Fraud Rate
**Importance:** The percentage of transactions that are fraudulent. In fintech, managing fraud is critical for financial stability, maintaining user trust, and meeting regulatory obligations. A low fraud rate is essential for long-term viability and building a reputable platform.

**PostHog approach:** Track fraud and risk-related events such as `fraud_detected`, `risk_assessment_failed`, or `verification_completed`. Enrich this data with properties like risk factors, fraud type, and user behavior patterns. Session recordings are invaluable for investigating suspicious user behavior to understand fraud vectors. Create dashboards to monitor fraud rates in real-time and set up alerts for emerging fraud patterns. Non-technical risk teams can use session recordings to review suspicious sessions flagged by alerts.

#### Compliance Metrics
**Importance:** Measures adherence to financial regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering). For fintech companies, compliance is not optional; it's a license to operate. Tracking these metrics is crucial for avoiding fines, legal penalties, and reputational damage.

**PostHog approach:** Track all compliance-related events, such as `kyc_started`, `kyc_completed`, and `aml_check_failed`. Use properties to log the compliance type, status, and user segment. This creates a detailed audit trail for regulatory purposes. Dashboards can provide a real-time view of compliance status and help monitor the efficiency of these critical flows. Alerts can be configured to flag compliance failures, allowing teams to act quickly. Non-technical compliance officers can use funnels to analyze and optimize the KYC process.

#### Customer Acquisition Cost
**Importance:** The total cost to acquire a new, verified customer. Fintech often has high acquisition costs due to marketing, compliance, and verification expenses. Understanding and optimizing CAC is crucial for ensuring profitability and scaling the business sustainably.

**PostHog approach:** Track the entire acquisition funnel, from `ad_clicked` and `account_opened` to `verification_completed` and `first_transaction`. Enrich these events with properties like acquisition source, campaign, and verification costs. Use funnel analysis to identify drop-off points in the onboarding and KYC process. A/B testing can be used to optimize landing pages and onboarding flows to reduce CAC. Non-technical marketers can use dashboards to compare the CAC and LTV across different channels.

#### Regulatory Reporting
**Importance:** This tracks the ability of the company to generate accurate and timely reports for regulatory bodies. Efficient and reliable reporting processes are essential for demonstrating compliance and avoiding penalties. While PostHog doesn't generate the reports, it can monitor the internal processes that do.

**PostHog approach:** Track internal events related to the reporting process, such as `report_generated`, `audit_trail_requested`, and `compliance_check_completed`. Use properties to specify the report type and its status. This provides visibility into the operational health of the reporting systems. Dashboards can be used to monitor the success and timeliness of report generation, and alerts can be set up to flag any failures or delays in the process, ensuring the compliance team is aware of any issues.