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Introduction to fintech

January 5, 2023

Introduction to Fintech

Fintech, short for financial technology, refers to the use of technology to improve and innovate financial services. It encompasses a wide range of products and services, including digital payments, money transfers, investment management, and financial planning.

Fintech has revolutionized the way we access and use financial services, making them more convenient, accessible, and secure. With the rise of mobile devices and the internet, it is now easier than ever to manage your finances, make payments, and invest online.

One of the main drivers of the fintech industry has been the proliferation of digital payments. Digital payment platforms such as PayPal, Venmo, and Apple Pay have made it easier for consumers to make purchases and transfer money digitally, without the need for cash or credit cards. These platforms have also made it easier for small businesses to accept payments and reduce their reliance on traditional payment methods.

Another key area of innovation in the fintech industry has been investment management. Online investment platforms such as Robinhood and Acorns have made it easier for people to invest in stocks, bonds, and other financial instruments, even if they have little knowledge or experience. These platforms have also made it easier for people to diversify their investments and access a wider range of investment opportunities.

Fintech has also played a major role in financial planning and personal finance management. Apps such as Mint and Personal Capital have made it easier for people to track their spending, create budgets, and plan for their financial future.

Overall, fintech has transformed the way we access and use financial services, making them more convenient, accessible, and secure. As technology continues to advance, it is likely that we will see even more innovation and disruption in the fintech industry.

Best Fintech marketing strategies

1: Create a mobile friendly website

There are over 6 billion smartphone users worldwide, and it is estimated that we spend an average of 5 hours per day using them. Smartphones have become an integral part of our daily lives and we use them for almost everything. Fintech apps aim to make financial services like banking, bill payment, loan applications, and investments more accessible through the use of smartphones.

It is essential for fintech companies to have a mobile-friendly website if they want to reach consumers and promote their services. Before investing in paid advertising and other marketing strategies, make sure that your website is easily accessible and viewable on mobile devices. Check that the user experience is seamless and that customers can quickly find what they are looking for. Customers who have a poor experience with a non-responsive site are more likely to go to a competitor instead of trying to navigate through a poorly designed website. In a competitive market, it is important not to miss this opportunity.

There are several benefits to having a mobile-friendly website for a fintech company:

  • Increased competitiveness: Nearly all fintech apps now have a fully mobile-capable website. As you are marketing a mobile product, it is essential to have a mobile-friendly site. If you do not, you will be at a disadvantage compared to other fintech companies.
  • Improved Google search rankings: Customers perform 52% of searches using mobile devices, and Google prioritizes showing mobile-friendly websites in these searches. If your website is not mobile-friendly, you will miss out on appearing at the top of Google search results.
  • Convenient way to reach customers: Most of your fintech customers are likely already comfortable using their smartphones for transactions and will likely research fintech companies on their mobile devices.

Here are some tips for creating a mobile-friendly site for a fintech company:

  • Keep text and descriptions short: Mobile devices have less space to display text, making long paragraphs difficult to read. Use large fonts and catchy visual elements to grab the attention of users.
  • Avoid using popups and unnecessary widgets: These can clutter your site and make it hard to navigate.
  • Optimize your site to load quickly: Remove unnecessary elements and use images or videos with small file sizes to improve the speed of your site.
  • Create clear call-to-action buttons: Make it easy for users to take action by using buttons that are easy to click.

2: Educate your customers

Financial literacy is essential for building a loyal customer base for fintech apps. While more than 50% of millennials use mobile payment apps, fewer than 20% are financially literate. This presents a huge opportunity for fintech companies to educate millennials, who are a key target market for these apps.

When fintech companies focus their marketing efforts on educating consumers, it can lead to increased usage of the app, positive word-of-mouth promotion, and increased customer loyalty. Customers will see the company as a partner in their financial journey rather than just a tool to help manage their resources.

There are several ways that fintech companies can educate their customers:

  • Use video marketing: Produce short videos and share them on social media platforms like YouTube, TikTok, and Instagram. Videos are a great way to make complex ideas easy to understand and can be a creative way to present these concepts in an enjoyable format. You can use explainer videos and other animated videos to help customers grasp key ideas.
  • Write informative blogs: Cover a range of informative financial management topics and turn them into helpful written guides. These blogs could be about foundational knowledge that customers can refer back to, or they could be about the latest best practices for maximizing financial resources.
  • Utilize images: Create visual guides to help customers understand step-by-step processes related to their financial needs. For example, you can help them understand how loans and credit score ratings work, or provide helpful guides on how to start investing and what investment products will work for them. Turn this information into easy-to-digest guides that customers can share or save for future reference.

3: utilize gamification techniques

Effective customer engagement is essential for fintech companies to differentiate themselves from the competition and retain customers. Gamification is a popular strategy that has been successful for many fintech apps.

Gamification involves using game-like elements to reward customers for completing specific tasks. This can include tactics like quizzes, puzzles, and contests that test customers' financial knowledge. Customers can be rewarded with badges for completing tasks such as making transactions, paying bills, and taking out loans.

Gamification is particularly effective with millennial and younger customers who appreciate a fun and interactive approach to completing routine tasks. It also helps turn financial education into a enjoyable activity that encourages customers to expand their financial understanding.

The benefits of gamification strategies for fintech companies include:

  • Promoting regular interaction: Customers are encouraged to interact regularly with your products. Fintech apps are designed to solve recurring financial needs, such as paying bills and making investments. Gamification keeps customers coming back to your app rather than exploring other similar apps.
  • Increasing conversion rates and revenues: With customers using your app frequently, they are more likely to take the actions you want them to take and convert to paying customers.
  • Creating brand awareness and excitement: Gamification helps to spread the word about your app as users are likely to share their achievements on their social profiles. It also keeps users excited to interact with your brand regularly to see how they can achieve more rewards or increase their status.
  • Positioning your brand as exciting and fun: Fintech companies are often seen as complex and serious, but gamification helps to change this perception and make your brand more approachable.

4: Social media marketing

Social media is a powerful tool for fintech marketing, as almost everyone is registered on at least one platform. If you are not using social media for your fintech marketing, you are missing out on customers. However, many financial institutions use social media in a dull manner and believe it is only suitable for fun and quirky brands. Fintech companies can greatly benefit from using social media with the right marketing plan.

There is no one-size-fits-all approach to using social media. Each platform has its own strengths and weaknesses, and different target audiences, so it is essential to understand these before creating a social media strategy.

Instagram and Facebook are both owned by the same company, which allows for cross-posting, but the way people engage on these platforms is different. YouTube and TikTok are both video-sharing platforms, but the types of video content shared on each site vary. Knowing the specific requirements of each platform will help you create content that resonates with their audiences.

To use social media for fintech marketing:

  • Identify your target audience and the platform they frequent: Each social media platform has its own representative audience, but some platforms have dominant groups and profiles. Gen Z is dominant on TikTok, while professionals are more likely to be on LinkedIn. Determine which market you want to target with each social media platform and tailor your strategy accordingly.
  • Build a community with your audience: Don't treat social media as a one-way street. It is meant to be a social connection between two entities, in this case between you and your target audience. Use social media to share information about your company and issues relevant to your customers. Listen to your customers' positive and negative feedback and show that you are willing to address it.
  • Be consistent with your messaging and efforts: You can't run one campaign or make sporadic posts and expect to be successful on social media. This is not how you will build a community. Social media platforms use algorithms to show their users the most relevant content. With thousands of brands competing for attention, failing to be consistent with your efforts will push you out of their radar.
  • Work with one platform first: Start with one social media platform and add more later once you have established your first profile. Once you have a solid marketing strategy on one platform and are familiar with its ins and outs, you can start adding additional platforms. This strategy will help you maximize a platform's intended audience and prevent burnout from managing multiple social media platforms at once.

5: Importance of SEO

SEO is a powerful and effective digital marketing strategy for fintech companies. It involves optimizing your website for the right keywords that users are searching for during their buying journey. It also includes techniques such as improving page speed, being mobile-friendly, and using backlinks to increase your site's search rankings. SEO helps your site generate organic traffic, meaning that visitors can find your content without relying on paid ads. In the long run, SEO provides a higher return on investment because as long as your content is relevant to what customers are searching for, it will continue to generate leads and sales for your brand.

The benefits of SEO marketing include:

  • Building consumer trust: Financial services rely heavily on consumer trust to be effective. You want customers to view you as a credible and professional fintech company that can be trusted with their personal and sensitive data. A high-quality website that follows SEO best practices sends clear trust signals.
  • Reaching customers at the right stage of their buyer journey: When it comes to financial services, customers are seeking solutions and answers to their pressing questions. With an SEO-friendly website, you can be confident that your site will be at the top of the search results when customers are searching for answers.
  • Generating a steady stream of customers: When you publish fintech articles on your website, search engines index them and show them to customers as long as they are relevant to the search queries. Evergreen content that answers timeless financial concerns will consistently rank highly on search results and be a reliable source of high-quality leads.
  • Fostering collaboration: One of the key SEO strategies is creating backlinks from other websites to your site. Backlinks are obtained by collaborating with other industry experts such as financial publications, finance bloggers, and other authoritative sources.

6: Content is king

Quality content is essential for fintech companies to establish trust and credibility with their audience. Content marketing helps to optimize your website for search engines and create a high-quality website. To create quality content, focus on producing materials that your target audience will find helpful and valuable. This means avoiding generic "tips and tricks" and instead creating in-depth, well-researched articles that address customer needs. Make sure to keep your content accessible and easy to understand, avoiding jargon and complex terms. Good quality content can boost your site's organic SEO, establish your brand as a thought leader, increase credibility and brand trust, and create loyal customers and revenue. Fintech companies have many opportunities to create valuable content that customers will find helpful and continue to refer back to.

7: affiliate and influencer marketing

Influencer marketing is a powerful fintech marketing strategy that involves collaborating with individuals or companies who have a large and engaged following. This includes affiliates, who are paid a commission for sending leads to your business, and referrers, who are incentivized to share your app with their network. Influencer marketing allows you to reach a targeted audience who are more likely to try out or purchase your fintech app.

Influencers have already established credibility with their followers, so when they promote a product, there is a higher likelihood of success. Influencers can range from those with thousands of followers to micro-influencers with a few hundred followers. It is important to choose influencers whose personality and follower profile aligns with your brand.

The benefits of influencer marketing for fintech brands include:

  • Quickly creating public awareness about your brand through the reach of influencers' social media platforms
  • Reaching a highly targeted and engaged audience
  • Achieving a higher return on investment due to cost efficiency, especially when working with micro-influencers
  • Forming genuine brand ambassadors through the right fit of influencers with your brand
  • Generating organic content and boosting SEO through the viral reach and engagement of influencer content.

8: The power of branding

Effective branding is essential for fintech companies to stand out in a crowded market and build customer loyalty. It's about more than just a logo and color scheme; it's about conveying the value and mission of your financial solution to your target audience.

To create a compelling brand, consider what your target audience will find appealing and what your product stands for. For example, if you're targeting millennials and Gen Z, you might want to adopt a bold and daring brand identity. However, if you're targeting Boomers, you might want to be more conservative with your branding choices.

Branding also involves creating a unique image for your product and communicating the problems it addresses and the direction you want to take it in. This can help you stand out from the competition and explore creative ways to present your app.

If you're not sure how to create a strong brand for your fintech solution, consider seeking the help of branding services. They can help you outline the mission and values of your product and create a winning brand that resonates with your target audience.

Benefits of strong branding include:

  • Improved brand recall: A strong brand identity helps customers remember your product and recall it accurately across all touchpoints, from ads to influencer campaigns to Google searches.
  • Positive word-of-mouth advertising: A well-crafted brand story that resonates with your audience can lead to word-of-mouth advertising, which is highly credible and can boost the impact of your campaigns by 54%.
  • Reduced price sensitivity: When customers feel an affinity for your brand and understand what it stands for, they'll be less sensitive to price and fees.
  • Customer loyalty: Customers who relate to your brand and understand what it's trying to achieve are more likely to stick around, even if other fintech brands offer more attractive incentives or features.

9: Video marketing

Using videos as part of your fintech marketing strategy can be highly effective in conveying complex ideas in a simple and easily understandable way. In fact, more than 50% of digital marketers believe that videos have the best return on investment and can increase conversion rates by as much as 80%.

There are various types of videos that you can incorporate into your marketing efforts. For example, you can create explainer videos or product how-to videos to showcase how customers can use your fintech app. You could also produce testimonial videos featuring users who have successfully used your product to improve their lives. Animation videos can be particularly useful for explaining complex concepts in a visually appealing way.

Videos can be a powerful part of your social media marketing campaigns and content marketing strategies. You can include them in blog posts to help boost search engine rankings, and they can provide a more engaging and effective way to showcase your product than text or static images alone. For fintech apps, it is especially important to let users see the app in action and understand how it works, as this can help build trust and overcome any remaining barriers to adoption.

If you're struggling to come up with ideas for video content or have difficulty producing it on your own, consider partnering with a video marketing company. While they may require a significant investment, they can help guide you in the right direction and ensure that your videos are in line with current trends. When choosing a video marketing company, be sure to review their past projects to ensure that they are the right fit for your needs.

10: Community building

Benefits of Community Marketing for Fintech Brands:

Builds a loyal customer base. When you involve your audience in the development process of your fintech app, they feel like they are a part of your brand. This creates a strong emotional connection between the brand and the customer, leading to increased loyalty and repeat business. Generates valuable feedback and insights. By involving your community in the development process, you can gather valuable feedback and insights that can help improve your product and tailor it to your target audience’s needs. This can help save time and resources in the long run by avoiding costly mistakes or missing out on important features. Creates a sense of belonging. Community marketing helps create a sense of belonging for your customers, making them feel like they are a part of something special. This can lead to increased customer satisfaction and loyalty. Generates positive word-of-mouth advertising. A loyal and engaged community is more likely to spread the word about your brand to their friends and family, leading to more organic and positive word-of-mouth advertising. Provides a platform for customer support. An active community can also serve as a platform for customer support, as customers can ask questions and get help from other members of the community, reducing the burden on your customer support team.