FinTech is not just about disruption in the way we invest and trade, it is redefining the very definition of money itself. And, 2019 will bring FinTech 3.0 upon us. Blockchain technology, AI and machine learning, innovative mobile APIs and smart payment systems might finally become successfully integrated into our day-to-day lives; thanks to the emergence of a number of FinTech startups and thought leaders.
Although disruptive technologies have the power to change the customer’s journey in a very positive way, adopting such tech still remains a challenge. With every new technology, comes resistance from traditional providers and skepticism on the part of the consumer. Marketers will need to re-think their strategies in order to stay relevant. Here are some tips to do just that.
1. Harness the Power of Social Media for Greater Exposure
We know that today’s consumer is highly active on digital platforms. While 3 years ago, traditional banking institutions were yet to understand the importance of leveraging this digital affinity, today they are becoming increasingly creative on these platforms. Big banks are using customer data on online platforms to offer better services or simply open an account.
American Express, for example, links the customer’s social media profile to their AMEX card, and then offers deals based on their likes and preferences. Another example is Barclaycard’s Ring MasterCard, which has been designed after considering opinions of consumers, regarding required features, on social media platforms.
So, while the financial sector has lagged behind other sectors in adopting social media and its benefits, it is catching up quickly; leading to reduced acquisition costs, better segmentation, and quicker and real-time marketing.
2. Embrace Regulations Rather than Resisting Them
Unless startups take care of regulatory pressures, they cannot concentrate on marketing activities. Banks are usually more open to partnering with licensed and white-labeled FinTech startups, to test and scale new regulations-driven products. In return, the startups get increased market access and are able to provide people credit at lower costs.
This also establishes trust with investors and consumers. So, startups need to focus on complying with regulations to keep the innovation journey smooth. At the same time, value propositions shouldn’t lack substance, out of fear of stepping outside the legislative boundaries. There needs to be a balance; craft the proposition first and then take out the parts that are not suitable for the jurisdiction. In other words, marketing shouldn’t be solely driven by compliance issues.
3. Provide a High-End Digital Customer Experience
For all the talk regarding new technologies, they will be difficult to adopt if customers have to follow complex routines. Businesses are increasingly getting rid of long enrolment processes and friction across various platforms. The underlying technology can be complex, but customers need to be provided simple and clean UX/UI. Moreover, if the interface is intuitive, responding to every customer intelligently through advanced CRM, it will be appealing to a larger section of your customer base.
Modern banking applications and payment systems make on-boarding a simple exercise, without which a brand cannot expand its market. Consumers have a huge number of options online for financial product purchases, so the presence of a great website should be the least companies do to survive the competition. Customers will simply abandon their purchases if they find a tedious selection procedure or a lack of proactive recommendations.
4. Provide Protection of Personally Identifiable Information (PII)
A FinTech start-up cannot afford a data breach. Such an event could destroy the brand’s reputation. It would affect word-of-mouth marketing and negate the chances of having social media influencers on board. The value of Personally Identifiable Information (PII) is very high today, and 2019 will be the year when technologies flourish only when they provide incentives and discounts on products in return for the consumer’s valuable PII. It is not only important to establish high security standards, but also educate consumers about them.
5. Leverage Content Marketing
Customised personalised content is the best way to establish a start-up as a domain expert. Marketing budgets of small companies are obviously lower than those of larger corporations, so in-bound marketing exercises can be a good option for customer acquisition and retention.
Providing good content is good for branding and can generate higher revenues as well. Learn more about your target audience and strategise the sales funnel. Major startups are using actionable content for demand and lead generation, not only on social media channels but also in financial publications. Social activism is high on everyone’s minds; especially the new-age millennials.
Brands that can use social media to showcase that their awareness and stance on political issues and social stigma to enhance global financial inclusion. A socially aware and responsive brand is one that cares. Your customers will appreciate that.