In the history of marketing, the advent of digital era can be marked as an important milestone. Digital sphere not only made several tasks easy, but also introduced new platforms and innovative technology that extended the realms of marketing arena.
Services and solutions that were unimaginable about 10 years ago have now manifested as reality. One of such technology is Fintech.
What is Fintech?
Fintech is short for ‘Financial Technology’ is a new technological innovation as well as an industry that is emerging as a new mode of deliverance of financial services and solutions. Unlike traditional financial methods, fintech industry completely relies upon technology for its working, as it itself is a product of digital technology.
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Fintech makes use of smartphones for investment, banking, trading in capital markets, and has derived cryptocurrency, as a mode of digital currency.
As digital is deemed to be the future of mankind, fintech is deemed to be the future of banking. Realizing its immense potentials, traditional players or established financial institutions are embracing fintech. However, a large segment of fintech players are in fact start-ups aspiring to compete against established players and fain a more competitive edge.
In order to achieve this, they have realized the need for marketing their services across the spectrum of digital platform.
Digital Marketing for Fintech Start-ups
Digital marketing has changed the most fundamental ways in which we approach our audiences. Gone are the days of cold-calling or outbound marketing.
In a world driven by digital data, the advancement of search engines, larger consumer preferences and reduced time of solution delivery – inbound marketing is pioneering as the most efficient digital marketing strategy for new businesses, and particularly fintech start-ups.
Inbound marketing for fintech start-ups helps a great deal since it focuses on improving trust through personalization.
Advantages of Inbound Marketing for Fintech Start-ups
• Cost-Effective: On an average, the cost for an inbound lead is 61% lesser than that of outbound lead. Also, five months after rolling out of an inbound strategy, the average cost per lead reduces by 80%. This means, a lot of money can be saved though inbound marketing. This is of great benefit for fintech start-ups as they can regulate their ad-spends.
• Builds Trust: Quality and informative content can help your customers make an informed decision and thus eventually trust your brand and stay loyal.
• Increases your Viability: Investors prefer to understand your products and services before making an investment. In this regard, inbound marketing strategy grows alongside your business. This nurture leads and increases the viability of your fintech start-up, thus producing long-term customers.
Fintech Marketing Strategies for 2019
With the ever-evolving digital space, change is constant factor. The digital trends are constantly changing, and hence your marketing strategy must be revised along with time, in order to accommodate these alterations.
Here are some of the fintech marketing strategies that you need to consider:
• Consider Mobile-First: More than 50% of online users access internet through mobile, rather than laptops. On an average, internet users spend approximately 5 hours on mobile platforms everyday. Moreover, it is estimated that by 2020, more than 2 billion people will be using fintech apps on their smartphones.
All these stats suggest that it is very important for fintech companies to consider mobile-first as an integral part of their marketing strategy.
• Embrace Social Media: Social media is becoming increasingly popular among Indians. With the advent of regional content marketing in vernacular languages, the internet userbase and social media userbase is predicted to multiply by ten folds in 2019.
All these figures indicate that it is very essential for fintech companies to engage and interact with your customers on social media, where they can be approach 24/7.
• Content is the King: Irrespective of which platform is used for marketing, it is still the quality of the content that determines the efficiency of any marketing strategy.
Hence, generate quality content that educates customers about financial related topics and provide valuable insights and tools on how to manage their financial conditions.
Studies suggests, only 28% of millennials have a clear understanding of effective financial investment. Hence, educative content is vital in determining the efficiency of any fintech marketing strategy.
• Focus on Branding: It is very important to be specific about your branding strategy at an early stage. Only if you are able to convey customers about the purpose of your organization, a clear distinction between you and your competitors can be established.
After all, customers would prefer to invest in companies that are unique from the rest. Hence, branding is key to effective marketing for fintech start-ups.
• Customer Engagement: Make sure that you engage with your customers 24/7. Be it on social media, or emails, or phone calls – customer engagement can yield amazing results. A recent research reveals that 7 out of 10 customers prefer to know about a company through articles, rather than ads.
Moreover, email marketing still holds good prospects for fintech companies, as customers are 5% more likely to open a personalized email from a fintech company.
• Seek Assistance from Micro-Influencers: A micro influencer is someone who may have less than 10 thousand followers on social media. Micro-influencers need not necessarily be famous or have many fans, but their followers generally share some sort of ties such as friends, family, colleagues etc. Micro-influencers have a high degree of influence over them.
Micro-influencers are of a great benefit to fintech start-ups: micro-influencers are not only cheaper to hire, but also are more credible to their audience – a major factor that determines trust where money is involved.
• Video Marketing: Videos have an advantage over other mediums, since they can appeal instantly even to the laziest of your audience. Videos can be entertaining and educative at the same time.
The latest trends indicate, you must first be a media company and then a fintech company in order to thrive in your business. That is the scope and necessity of video marketing in 2020.
Statistics indicate brand awareness can be increased by 54% through video marketing. Hence, for every fintech start-up aspiring to grow big, video marketing must be an integral part of marketing strategy.
Fintech industry is increasingly growing in its prominence, and digital marketing is the only way to expand its customer base. However, marketing has to be done with utmost care and proper marketing strategy must be framed.
Since majority of the audience are still dubious about investing money in the digital space, a lot of promotion about the brand and its operations must be conducted in order to gain the trust and loyalty from the customers. This can be achieved in many ways such as micro-influencers, video marketing, quality content etc.
Since there is no much expenses for inventory, fintech has a lot of economic benefits over traditional finance sector, Hence, it is a smart choice to invest in fintech start-ups now. Also, for any fintech industry to thrive, it is necessary to promote and market the brand in the right light.