Brand building is the process of identifying the strengths of an organisation and creating consumer awareness regarding the value add the business has to offer. FinTech companies tend to ignore this aspect of establishing brand value in the mind of the consumer. So immersed are they in building complex platforms that they forget to position themselves as key differentiators.
A lack of branding strategy points towards an untapped need for growing a FinTech company from within, since branding is not just about a website and logo. It is about what emotions a company evokes in the consumer and instilling core values in users and employees alike.
Branding Will Help Cut Through the Noise
Financial technology is not new anymore. New technologies, like peer-to-peer lending platforms, mobile banking, blockchain-based payment systems and intuitive finance apps, are beginning to flood the market. They are all worthy competitors, backed by solid investors and attempting to capture your consumer’s attention.
Atom Bank, the UK’s first mobile-only bank, is offering all its services via a smartphone app and projects itself as a “customer-obsessed’ organisation. In a bid to provide increased personalisation to its clientele, the brand allowed customers to choose their own logo and colour palette while using the app.
Branding helps FinTech brands survive the intense competition in the industry. Such tactics allow greater emotional brand connections with the audience.
Acquiring the Right Talent
Branding is an art through which companies can relay messages to multiple stakeholders. It is a great tool to not only attract and retain consumers, but also to attract great talent. In the FinTech lending sector, there is an increased focus on recruiting qualified data scientists, product developers and data analysts; and unless a company brands itself well, the best talent will not consider it over the established giants, such as Google and Microsoft.
Millennials Love Brand Purpose
In the US, millennials have direct annual purchasing power valued at $1.3 trillion, making them the generation with the highest spending power ever in 2018, according to Boston Consulting Group. They interact with brands largely on mobile devices and social media platforms, and they rely on friends, family and even strangers for user recommendations.
Word-of-mouth recommendation depends on a lot of factors. A unique brand experience depends on ease-of-use, faster customer services, prompt service delivery and redressals, and expert money management advice. So, if a brand wants to reach out to the millennial generation, it has to provide more than just a good product and service; it needs to clearly communicate its values and brand purpose.
Did you know, 75% of millennials love brands that give back to society, instead of just having a profit-making motive? Their love for social activism is making big brands re-think their marketing strategies. Visible social consciousness is important from the perspective of retaining customer loyalty. We have to remember that they are flooded with choices already.
Enhanced Company Valuation Will Pave the Way for Partnerships
For a FinTech start-up owner, company valuation is an important topic. Strong brand building will lead to a possible increase in the brand equity, making it easier for small start-ups to get acquired by big names. It is important from the angle of attracting serious investors as well. A brand that has a dedicated community and a good number of followers on social media will always interest investors. Online communities not only encourage growth, but also provide valuable feedback for businesses. User-generated content like reviews and testimonials enhance a brand’s credibility and inspire trust.
It is not necessarily acquisitions that a FinTech brand can look forward too. Traditional financial services providers are struggling with advancing technologies, changing consumer preferences and increased digitisation. These institutions are looking for fruitful collaborations with FinTech companies to maintain their vast consumer base and scale their business.
Enhancing one’s brand image is more important now than ever before, if you wish to be considered as a collaboration partner. Partnerships will allow the FinTech sector, which otherwise lacks capital, knowledge of compliance laws and a robust distribution network, to grow.
If you want to build a brand image that is not only sophisticated, but also makes a favourable impression on the consumer, ConversionPros can help you. Contact us for all the brand building needs of your FinTech company.