What happened
Shares of Yext (YEXT 0.72%), a software company that helps improve search data, charged higher this week, gaining as much as 12%. As of 1:53 p.m. EDT on Friday, the stock was up 10.2%.
Investors were reacting positively to the company's entry into the fintech arena.
Image source: Getty Images.
So what
Early this week, Yext announced the debut of its financial services cloud, a set of artificial intelligence tools designed specifically for banks and financial institutions. The platform starts with Yext's AI-powered site search, third-party listings, and search-optimized landing pages, and adds its latest creation, guided search.
Using a detailed questionnaire on the financial institution's website, the company helps direct consumers to the products or services they need or match them up with the banker best suited to serve them. History shows that if prospects get the help they need, they're more likely to become customers, and at the same time, existing customers are more likely to stick around.
The platform offers additional features to help banks build trust in their brand. Yext's reputation management tool helps financial institutions "monitor, respond to, and generate reviews for their branches and professionals." This helps surface potential pain points with customers so banks can react quickly in responding to problems or identifying solutions.
Now what
Just days before the debut of the financial services cloud, Yext shared a customer success story that likely bolstered its profile as well.
The company recounted how it had helped tech giant Samsung optimize its customer service and support site in the early days of the pandemic. The company was "inundated with questions" about its products from customers on lockdown and working from home. By using Yext's AI-powered search solution, Samsung customers were able to find what they needed, and the company was able to improve its net promoter score by 45% -- within just 11 weeks.
The move into fintech is a natural extension of Yext's existing business and will likely increase its market opportunity, giving shareholders reason to cheer.
