FinTech merges two disciplines that demand the maximum amount of credibility in any industry, finance and technology. The task is challenging and not every out-of-the-box financial product succeeds in the market. According to the Global FinTech Report 2018, by Capgemini and LinkedIn, although 7,500 FinTech companies around the globe have raised more than $109.8 billion, many are bound to fail due to a variety of reasons, some for the inability to find takers for a product and others for collaboration challenges or having a low marketing budget.
However, it isn’t the marketing budget that can be the biggest problem. Here’s a look at the most common mistakes made in FinTech marketing strategies, which could lead to failure or slow growth rates for a FinTech software company.
Considering FinTech Marketing as an Afterthought
Many FinTech firms don’t understand the need for marketing or advertising for their product, thinking that the solution is so great in itself that it will definitely find takers. Having a clearly outlined, multi-faceted marketing strategy is as essential to succees as putting efforts into product research and development.
FinTech start-ups have tight marketing budgets, and they need to consider the potential for long gaps between initiating marketing efforts and actually seeing results. Development in this sector takes place at lightning speed, and solutions get outdated before you know it. A successful strategy will be something that foresees future obstacles before they happen.
Lack of a Well-Designed and Optimized Website
It is long past the time when absence of a website was essentially a marketing blunder for FinTech companies. Today, it isn’t just enough to have a FinTech website, it is also critical to have an intuitive, aesthetically pleasing and educational platform.
For starters, a lack of a good website hampers credibility and brand recognition. A website is an essential lead generation tool and a way to engage with potential customers. It needs to guide buyers through each stage of the decision-making and purchasing process. This includes content that helps them make informed decisions.
SEO also needs attention. This includes identifying and integrating the most relevant keywords, crafting a responsive website design, tracking bounce rates and origin of organic traffic and providing content that not only is packed with keywords, but engages and educates visitors.
Ignoring Challenges of Adoption
The talk of millennials and their love for technology and innovative products is true, but to only up to a certain point. When it comes to adoption of new financial technologies, people tend to be skeptical about new technology and then there are those who do not understand the tech so well. People generally tend to stick to traditional banking giants, when it comes to investments and savings; they lack the incentive to change. Although customer adoption rates for FinTech products is 33%, the biggest consumer segment is that of payment and money transfer services, compared to insurance products, financial planning or lending platforms.
FinTech products do not have widespread traction in all customer segments, which is why it is essential to find the target audience and the marketing channels best suited for them. Also necessary is the need to simplify the product features for customers. Step-by-step product tutorials are an important FinTech digital marketing tool. It humanises complex technologies and also attracts attention on social media platforms; particularly videos.
Not Leveraging Social Media
From gathering peer recommendations to finding new products, consumers today increasingly resort to social media platforms. The advent of high-end smartphones and proliferation of app development makes it necessary to have a strong presence on social media, if a company wants to get noticed.
Social media channels also provide fantastic platforms to engage and build a rapport with consumers, including their complaints and feedback. At the same time, it is necessary to have well-defined content strategies for each channel, something that works for Linked In won’t be applicable to Twitter. Apart from SEO and brand awareness, social media can also establish your brand as a thought-leader.
Lastly, content strategies need to be crafted in a way that can inspire people to try innovative solutions. This shouldn’t only be about pointing towards the cumbrousness of traditional financial services providers, they still have the upper hand when it comes to dealing with life-savings. Rather, FinTech companies need to carve out their own place in the financial world.