The financial sector has boomed in the wake of the pandemic. On the back of online banking success and widescale corporate digitalisation, fintech-based systems have become the creme-de-la-creme of the technological revolution.
Tipped as a top contender for VC investment post-Covid, the fintech market is now expected to surpass $31 billion by 2026, overtaking the compound annual growth rate of a number of competing digital sectors such as AI and AR.
As consumer attitudes continue to transform, an online future has called for mass fintech onboarding. From improving digital payments to increasing corporate cybersecurity, the market potential is massive for financial tech aids.
The question is, in such as competitive market, how do new fintech innovations stand out? Stay with us as we discuss the fintech startup boom, and reveal why financial-based marketing has become the key to success in a new competitive market.
The Rise Of Fintech Competition In 2022
According to financial experts at Venture Scanner, global investments in FinTech all but doubled in 2021. Increasing by 144% in comparison to 2020, the industry became hot and popular amongst banking giants, venture capitalists and the e-commerce sector.
However, as the market became a hotspot for exponential growth, more entrepreneurs than ever before hopped on board a quickly expanding train. In fact, in 2020 alone, BCG data revealed that the number of fintech startups has tripled since the onset of the pandemic.
Rising from just 12,000 fintech-based companies in 2019 to a whopping 26,000 at the start of this year, competition for consumer investment and engagement is becoming tricky for startups hoping to make it big in the financial sector.
As more fintech companies battle it out to remain the popular choice for large-scale investors, they must work harder to gain market authority. From improving customer outreach to promoting hot topics such as automation and big data to a digitally demanding demographic, it’s time to get on top of financial marketing trends if entrepreneurs want to see success.
How To Make Sure Your Fintech Stands Out
In a competitive market, it’s important to prove to your customers that your Fintech deserves attention.
As startups battle it out to appear on the first page of a Google search or secure that all-important deal with a financial giant, we have listed some tips below for a financial marketing strategy that will see your engagement climb.
Keep On Top Of Your Consumer Outreach
Consumer outreach remains one of the most traditional, yet effective forms of marketing in the financial sector. As banking giants and financial institutions adopt new methods of reaching their consumers, fintech startups need to be taking notes.
Taking time to research your target audience, their first-party data and their financial demands can influence engagement campaigns, that prioritise a personalised product/service.
Reaching out to your consumers with personalised offers, resources and information is a quick way to become acquainted with potential leads. For example, if you are a corporate-focused fintech service, aiming to improve business-based financial efficiency, why not reach out to target companies, instead of waiting for them to come to you?
Taking a step back and creating a personalised solution for your target demographic is likely to increase interactivity and the number of positive reviews, in turn boosting brand awareness and your position in a Google search.
Did you know that only 10% of pages in a Google search string receive engagement? In order to rank highly, you need to be constantly connecting with consumers.
As Backlinko suggests above, 30% of all clicks go to the first search result on Google, while less than 10% go further than page five.
Using consumer outreach campaigns to connect with your demographic and create a loyal consumer following, is a simple way to increase site clicks and product/service engagement. The more people you reach out to, the greater your conversion rate will be.
Prioritise Self Service
In a new digital age, prioritising the needs of an active consumer is key, when trying to sell your financial service. With a new demanding audience that expects high levels of personalisation and interaction during their experience with a brand, fintech startups must use their platforms to promote self-service to a consumer hunting for their own solution.
Your website must be optimised for a high-quality user experience that demonstrates how your fintech solution will aim to improve a consumer’s financial situation. Whether this is simplifying cross-border payments or introducing new forms of financial security, it’s important to prioritise self-service for an active target audience.
In fact, 40% of all online consumers now prefer a self-service experience over human/chatbot intervention. Marketing your fintech company as a service/product that can be set up, personalised and used solely by the user is the key to getting digitally savvy Gen Z and Millennial customers on board.
Promote Automation & Big Data
In order to remain popular within the fintech market, it’s important for startups to jump onto other technological trends as well. Speaking to a digitally demanding demographic, it’s important for financial marketers to prove that they have taken all market trends into consideration when creating their product/service.
For example, fintech’s aiming to reach a corporate audience should prioritise automation when promoting their service to business owners and B2B leads. After 56% of all corporate leaders ranked automation as their number one productivity booster in 2021, they are more likely to be interested in a fintech service that promises to improve automation efforts and strive to further boost work-based efficiency.
Another key trend making its way across the financial sector is big data. After cyber security risks increased exponentially on the back of Covid-19’s digital shift, more financial giants, including banks, corporate leaders, and financial services, are investing in big data in order to keep consumer information encrypted and protected moving forward.
Fintech startups must prioritise big data, in their product/service strategy if they want to progress in line with consumer trends. The key here is to start using big data-focused keywords when writing site content or employ a content agency to aid site SEO, in order to appear in big-data-based searches.
Step Up Your Social Game
Last but not least, it’s time to get social. While the financial sector is not commonly known as a prime target for a social media platform, a social presence has now become essential in a modern-day marketing strategy.
With over 4.62 billion social media consumers now using at least one platform a day, building a following in the social sphere is a quick way to increase brand awareness, consumer loyalty and site conversions.
The key here is to get specific. Knowing your audience inside and out makes it easy to choose the social platforms with the most engagement potential. For example, for a fintech service marketing themselves to the corporate world, it might be time to take to Linkedin, a business-based social platform, filled with company leaders looking to digitalise their processes.
For a Gen Z approach to financial planning, and automated money management, why not head to platforms like TikTok, in order to have a shot at gaining viral success amongst your target demographic?