The fintech marketing landscape is evolving at a rapid pace, and in 2024, the competition among fintech apps is fiercer than ever. As of recent data, American consumers use an average of three fintech apps to manage various aspects of their financial lives, from payments and investments to budgeting and lending. This trend is not limited to the America but extends globally, showcasing the widespread adoption of fintech solutions.
However, with the immense market opportunity comes a significant challenge – standing out in a crowded field. As of May 2023, there were over 11,000 fintech startups in the Americas (North America, South America, Central America, and the Caribbean) alone, emphasizing the need for robust fintech marketing strategies to acquire and retain customers.
The Dynamic Landscape of Fintech Marketing
Challenges in Fintech Marketing:
Fintech companies invest heavily in marketing, with expenditures reaching millions of dollars, as seen in India’s fintech startups reporting advertising expenses of $23.9 million in FY22. The competition is intensified by the need to offer attractive discounts and cash backs to lure new customers, leading to high uninstall rates for finance apps acquired through non-organic sources.
Moreover, the investment flow into fintech companies has shown a fluctuating pattern, underlining the importance of adapting marketing strategies to the changing market dynamics. The downward trend in funding observed in recent years indicates the necessity for a thoughtful approach to marketing spending while staying aligned with current market trends.
Benefits of Having a Fintech Marketing Strategy:
Despite the challenges, having a robust fintech marketing strategy is essential. According to Plaid, 88% of US consumers now use apps to manage their finances, signifying a 52% year-over-year increase from 2020 to 2021. Fintech marketing enables brands to reach new audiences, educate users about financial management, build trust, and explore valuable data for customization.
Time-Tested Fintech Marketing Strategies in 2024
1. Education Over Promotion:
Financial literacy remains a key concern, with research revealing that both millennials and Gen Z in the United States aspire for a better understanding of personal finance. Fintech marketing should focus on education, utilizing bite-sized videos, evergreen content, and mobile-friendly websites to build brand authority and empower users to make informed financial decisions.
Example: Venmo (owned by PayPal) educates its customers with bite-size videos to enhance their investment decision-making.
2. Align with Causes:
Millennials and Gen Z are more likely to engage with brands that align with their values. Fintech companies can showcase their commitment to social causes, fostering a sense of connection with users. Transparency about contributions to causes and the impact on society can enhance brand loyalty.
Example: Lemonade, a digital insurer, defines its philanthropic processes on its website, connecting with its younger customer base.
3. Explore Opportunities with Existing Customers:
Despite the growth in fintech app usage, there’s still untapped potential among users. Fintech marketing should focus on notifying users about the full range of features, cross-selling relevant offerings, and incentivizing customers to explore and utilize all available services.
Example: Running nurturing campaigns to explore opportunities with existing customers and tracking the most used features to build targeted propositions.
4. Target Untapped Markets:
The increasing number of fintech app installations in developing markets presents an opportunity for expansion. Fintechs can target the underserved and unbanked sectors, providing solutions tailored to their specific needs.
Example: MOVii, a digital wallet service in Colombia, enables contactless payments and disburses government funds, addressing the needs of the underserved population.
5. Prioritize Empathy:
As technology evolves, vulnerabilities in fintech platforms may emerge. Fintech marketing strategies should include an empathetic approach to address customer concerns promptly, especially on social media platforms where users often express dissatisfaction.
Tip: Prepare response templates in advance to maintain brand voice and ensure healthy communication.
6. Build Trust Through Transparency:
Security concerns are paramount in fintech. To build trust, fintech marketing should highlight security certifications, transparent pricing, user-friendly explanations of terms and conditions, and display trust signals such as HTTPS on websites.
Example: Zelle provides data usage information and privacy notices, enhancing transparency for users.
7. Find and Market Your Unique Selling Proposition (USP):
Differentiate from traditional banks by emphasizing the simplicity and efficiency of fintech services. Highlight the ease of use, lack of cumbersome processes, and frictionless interactions to attract new users.
Example: Thimble, a New York-based insurer, addressed customer needs during the pandemic by allowing users to pause insurance payments, showcasing flexibility.
8. Incentivize Customer Engagement:
Incentives play a significant role in customer acquisition. Fintech marketing can leverage cash backs, joining bonuses, referral bonuses, and partnerships with popular brands to encourage user engagement.
Example: Cash App offers instant cashback on retail and dining purchases through its Boost program, fostering user engagement.
9. Utilize In-App Marketing for Retention:
Customer retention is a challenge in fintech. In-app marketing allows for targeted messages, upselling, cross-selling, and announcing new features directly to active users.
Example: Chime sends in-app notifications to inform customers about relevant services and features.
10. Harness the Power of Social Media:
With over 4.5 billion active social media users, fintech marketing should strategically utilize platforms based on content preferences. Influencer programs, paid ad campaigns, social listening, polls, surveys, and customer testimonials can enhance engagement.
Tip: Implement lead capture mechanisms to manage sales opportunities efficiently across platforms.
11. Understand and Personalize Communication:
Fintech companies have the advantage of leveraging data for personalized communication. Segmenting leads, addressing users by their first name, and using collected information for targeted messages contribute to a more personalized user experience.
Example: PerkFinance tailors its financial solutions specifically for the blue-collar workforce.
12. Embrace Marketing Automation:
Efficiency is key in fintech marketing. Define goals, determine key performance indicators (KPIs), and automate tasks where possible. Marketing automation and CRM solutions can streamline campaigns, track metrics, and provide automated reports for informed decision-making.
Tip: Set clear goals and KPIs for each fintech marketing campaign and leverage automation tools for efficiency.
Conclusion: Emerging Trends in Fintech Marketing in 2024
The future of fintech marketing lies in adapting to emerging trends and aligning strategies with the evolving needs of users. The continued growth in the usage of fintech apps indicates a positive trajectory for the industry. Digital investments, digital assets, and the increasing number of digital payments users present substantial opportunities for fintech companies.
As the fintech landscape evolves, marketers must stay agile, leveraging data, embracing personalization, and adopting automation to navigate the dynamic market successfully. By incorporating these strategies and staying attuned to market trends, fintech companies can not only survive but thrive in the competitive landscape of 2024 and beyond.
