In recent years, we have seen a boom in FinTech investments. Technology-driven disruptions in financial services are seeing a splurge in funding, with $5.64 billion having been raised across 375 deals, representing an increase over 82% in Q3 2018, as compared to the previous year. As the thin line between FinTech companies and financial services providers continues to blur, every major institution is planning to join the innovation bandwagon. Promising startups are vying for new customers and established FinTech players are giving them tough competition.
It isn’t surprising, therefore, that many of these companies are strategically using customised curated content to drive brand value and qualified leads. There are a number of reasons for this.
Millennials are Driving FinTech Adoption
FinTech adoption continues to gain momentum among the younger generations, particularly millennials who have a strong propensity for digital messages. They represent the largest consumer segment, with almost 49% falling in the age bracket of 28-34 years, followed by 41% in the 35-44 age category, according to an EY Report.
This generation is highly active on social media, and is dissatisfied with traditional financial institutions, due to their lack of digital initiatives. They are looking for non-traditional financial providers, which makes them prime target audience for FinTech. So, it becomes necessary to include content marketing strategies on the channels they frequent, in order to reach them with good solutions.
Aiding the Smooth Adoption of New Technologies
The FinTech sector impacts both individuals and businesses. Technology is enabling consumers to change the way they deal with financial services. It is necessary to educate them on how new technologies can help them efficiently manage their day-to-day financial activities and make their lives simpler. Then come the important tools for money management. Content marketing works in multiple ways to achieve this. For instance:
- Tutorials on how to use a new technology conveniently.
- Laying out the risks of new technologies, so that consumers can make informed decisions.
- It helps alleviate skepticism concerning new technologies. The blockchain market, for example, is constantly riddled with community-generated rumours that affect coin prices to a great extent.
- It helps encourage collaboration and partnerships for innovation.
Reaching the Funding Giants
FinTech start-ups raise money from angel investors and venture capitalists, who consider good content generation as one of the plus points of a company. A well-structured, sleek and informative website, tailor-made for potential clients, gives them the reassurance that the company is serious about long-term growth and understands the power of inbound marketing to drive leads and sales. So, apart from consumers, even investors correlate the quality of content with quality of products and services.
Creating Brand Awareness
Content marketing and SEO go hand in hand, and when both are woven together to align with business goals, significant brand value can be generated. Creating high-quality content and publishing it outside the website enables a FinTech company to reach new audiences. It also establishes the brand as a domain expert, if done the right way.
Newsletters are very helpful in this effort, to create a lead-nurture sequence for attracting and engaging potential clients. The audience doesn’t always want to buy products and services when they are browsing the internet for information. They are also looking for shareable content. Content sharing is a popular activity for the younger generations. It is a means of social acceptance amongst peers. This is achieved by two ways:
- You are what you share – If you share good content, you will be followed by more people and praised by peers. This can be leveraged to reach a wider audience.
- Content co-creation – User-generated content works well for new technologies, which creates trust for a brand. The key is to make the audience feel like a part of a campaign, while retaining overall control. Messages can grow organically among the target consumers.
When the audience is engaged with a company, knows about a company and trusts it, recruitment becomes easy for the HR department. Brand value is a big factor in attracting new talent. The emerging FinTech sector always faces a dearth of data scientists, developers, engineers and marketing communication specialists. Companies that have rich-content strategies can recruit more talent. For instance, LinkedIn is a prominent hub for professionals that can be leveraged.
The FinTech sector faces tough competition from traditional banking giants, in terms of huge client base and marketing budgets. Content marketing, especially, in-bound marketing tactics is a good way for them to attain a competitive edge.