Understanding how to Market Fintech

Introduction to the world of Fintech

The financial technology (fintech) industry has experienced explosive growth recently. Fintech refers to using technology to deliver financial services and products to consumers in an accessible, efficient, and affordable way. Fintech products range from mobile payment apps and online lending platforms to robo-advisors and cryptocurrency exchanges.

Marketing fintech products presents unique challenges compared to marketing traditional financial services. Fintech startups are often venturing into uncharted territory with innovative products that consumers may be unfamiliar with. Because of this, building trust and credibility is crucial.

Fintech products typically target tech-savvy millennials and younger consumers with different expectations and behaviors than older generations. To successfully market fintech products, it's essential to deeply understand the target audience, craft a compelling value proposition, and leverage digital marketing channels to reach and engage potential customers.

In this blog post, we'll explore the target market for fintech products and the most effective marketing strategies for achieving growth and adoption.

Target Market for Fintech Products

While fintech products have broad appeal across many demographics, the core target market consists of younger, digitally-native consumers, particularly millennials (born 1981-1996) and Gen Z (born 1997-2012). These generations have grown up with smartphones, apps, and digital services and expect seamless, on-demand user experiences.

Some key characteristics of the target market for fintech products include:

Millennials and Gen Z:

Younger consumers make up the largest segment of fintech adopters. They are more likely to use mobile banking, online investing platforms, and peer-to-peer payment apps. Over 70% of millennials use mobile banking, and 50% use a money transfer or payment service.

Underbanked and unbanked consumers:

Many fintech products aim to provide financial services to consumers underserved by traditional banks, either because they lack access or cannot afford high fees. Globally, 1.7 billion adults remain unbanked. Fintech products like mobile money accounts and microloans can help meet their needs.

Small business owners:

Fintech lenders and business management tools are popular with small business owners who may not qualify for traditional bank loans or want more efficient ways to manage finances and accept payments. 77% of SMB owners use a fintech product for banking, credit, or payments.

High-income, tech-savvy consumers:

Affluent, technologically inclined consumers are a key target for fintech products like robo-advisors, online trading platforms, and luxury-focused concierge services. These consumers expect white-glove service and are willing to pay a premium for advanced features.

Gig economy workers:

With the rise of gig work and freelancing, there is growing demand for fintech products that cater to their unique needs, such as invoice management tools and on-demand access to earnings. 35% of the U.S. workforce participates in the gig economy.

International and cross-border consumers:

Fintech products that facilitate low-cost international money transfers, multi-currency accounts, and global payments are popular with immigrants, frequent travelers, and businesses with international suppliers or customers.

By understanding these target audiences' needs, preferences, and behaviors, fintech marketers can develop more effective messaging, product features, and go-to-market strategies. Segmenting the market and creating buyer personas is an important step.

Here are some resources to help you identify your targeted buyer personas and how to create and distribute content.

• How to Create Buyer Personas

• Buyer Personas - the Foundation of Strategic Marketing

Strategies for Marketing Fintech Products

Once you have a clear picture of your target market, the next step is developing a marketing strategy to reach them. Fintech products require a different approach than traditional financial services marketing. Building awareness and trust is critical, as is meeting consumers where they are across digital touchpoints. Here are some of the most effective marketing strategies for fintech:

Content marketing and thought leadership

Content marketing is one of the most powerful tools for fintech companies to educate potential customers, build credibility, and generate leads. By creating high-quality, informative content that addresses customers' pain points and financial needs, fintech brands can attract inbound traffic and establish themselves as trusted experts.

Types of content marketing that work well for fintech include:

• Educational blog posts and articles

• Whitepapers and ebooks

• Infographics and data visualizations

• Videos and webinars

• Podcasts

• Case studies

• Testimonials

The key is to create genuinely helpful and valuable content for your target audience rather than overtly promotional content. Content should be easy to understand, with complex financial topics broken down into simple terms. Storytelling and real-world examples can make content more relatable and engaging. Thought leadership is also crucial for building authority and media visibility. Executives should contribute bylined articles to industry publications, be quoted in relevant trend stories, and participate in speaking engagements and panel discussions. Conducting proprietary research and surveys can fuel unique insights.

Here are a few resources to help you create compelling content that will resonate with your targeted buyer personas:

• Discover How To Create Great Content

• Content Marketing Formula - Rules for Success

Social media and influencer marketing

Social media is a crucial channel for reaching younger fintech consumers who spend significant time on platforms like Instagram, TikTok, Twitter, and YouTube. Fintech brands should have a strong presence across major social channels and post a steady cadence of engaging content.

• Effective social media tactics for fintech brands include:

• Educational posts that offer financial tips and advice

• Polls, quizzes, and question prompts to encourage engagement

• User-generated content campaigns and customer testimonials

• Behind-the-scenes looks at company culture and team members

• Timely posts tied to current financial events or pop culture trends

• Paid social media ads targeted by demographic and interest

  Here are a few resources that can help you create a social media program that will deliver results:

• Top Fifteen Mistakes That Social Media Managers Make

• Using Organic Social Media Marketing to Obtain Sales

• Social Media Marketing - User Generated Content

• Social Media Marketing - Is Pay for Play Worth It?

• How To Set Up a Paid Social Media Campaign

Influencer Marketing

Influencer partnerships are another powerful way to reach new audiences and build credibility on social media. Fintech brands should identify relevant influencers in the finance, business, and lifestyle verticals and sponsor content that aligns with their products and values. Macro, Mid-tier, and Subject Matter influencers with highly engaged followings can often drive more potent results than mega-celebrities.

To understand how to utilize influencers, here are a few resources:

• The ALMOST Definitive Guide To Influencer Marketing

• Who Are Influencers?

• The Science Behind Influencer Marketing

• Influencers - How to Measure Performance

• How to Find the Right Influencer

• Influencer Marketing - The Impact of Artificial Intelligence

• How to Become a Paid Influencer in 12 Easy Steps

• Influencer Marketing - Know Your Legal Duty

Search engine optimization (SEO)

Many consumers turn to search engines when researching financial products and services. Ranking well in search results for relevant keywords is crucial for driving organic traffic and brand visibility.

Fintech companies should invest in SEO strategies like:

• Keyword research to identify what terms your audience is searching for

• On-page optimization of website titles, meta descriptions, headers, and content

• Generating high-quality backlinks from reputable websites

• Creating localized content and claiming local business listings if serving a regional market

• Technical SEO best practices like site speed, mobile optimization, and site architecture

Longer-form content like blog posts, guides, and videos tends to perform well in search engines. Optimizing content for featured snippets and "People Also Ask" boxes can increase visibility. To better understand how to implement a highly effective social media plan, here are some resources:

• Fast and Furious Websites are Good SEO

• Website Load Speed - User Experience

• SEO Basics - Can Your Website Be Crawled and Indexed

Referral Marketing

Referral is an effective way to acquire new customers by incentivizing existing customers to refer their friends and family. Fintech companies can offer rewards like cash bonuses, account credits, swag, or exclusive perks for successful referrals. To run a successful referral program:

• Make it easy for customers to refer others with shareable unique referral links and pre-written social media posts

• Offer an attractive incentive that is valuable enough to drive action

• Promote the referral program prominently across all customer touchpoints

• Gamify the experience with tiered rewards, leaderboards, or time-based campaigns. Here is some additional information about gamification.

  • Level Up Your Marketing: The Power of Gamification

  • Gamification - Make Marketing Fun Again

  • Gamification - All Games Have Rules

  • Gamification - Campaigns for All Occasions

Affiliate Marketing

Affiliate marketing is a powerful acquisition channel in which publishers and influencers earn a commission for promoting your product. To optimize the results, identify high-traffic websites and thought leaders in the personal finance space and provide them with unique tracking links. To protect your brand, only use affiliate partners with reputable affiliates.

Product Partnerships

Product partnerships and integrations Partnering with complementary companies and integrating your fintech product into their ecosystem can expose your brand to a broader audience and add value for your mutual customers. Examples of fintech partnerships include:

• Mobile banking apps partnering with retailers for cashback rewards and discounts

• Online lenders integrate with accounting software to offer seamless access to financing

• Investment platforms providing market data APIs to business news sites and blogs

• Crypto wallets partnering with e-commerce brands to enable crypto payments

Co-branded marketing campaigns with partners can help amplify reach and credibility. Integration partnerships also create stickiness and reduce churn by embedding your product into customers' daily workflows.

PR and Media Relations

Earning media coverage in trusted publications is essential for building brand awareness and credibility. Fintech startups should cultivate relationships with key journalists and editors at target outlets. Effective PR tactics include:

• Newsjacking: Offering expert commentary on breaking financial news stories and trends

• Data-driven stories: Packaging proprietary data into newsworthy stories or reports

• Product launches: Developing creative angles and assets to stand out

• Founder profiles: Pitching the founding team's unique story and qualifications

• Contributed content: Publishing bylined articles and op-eds to demonstrate thought leadership

Here are some authoritative articles on Public Relations and Earned Media:

• Public Relations - Strategic Insights

• Elevate Your Brand: Public Relations Best Practices for 2024

• Earned Media Can Boost Your Brand's Reputation and Sales

• Five Winning Earned Media Campaigns

Experiential and Event Marketing

While digital channels are the primary focus for most fintech products, experiential and event marketing can be a powerful way to build deeper relationships with customers and prospects. Experiential and event marketing ideas for fintech include:

• Branded pop-up events that offer financial education and product demos

• Sponsoring or exhibiting at relevant industry conferences and trade shows

• Hosting VIP dinners or networking events for clients and partners

• Participating in community events and festivals to build a local presence

Experiential activations should be interactive, memorable, and tied to a clear call to action. Collecting contact information from attendees can support lead generation and remarketing efforts. Here are some examples that can inspire the fintech marketer.

• Guerrilla Marketing - Hits and Misses

• Guerrilla Marketing - Why You Need a Program

• Guerrilla Marketing - How To Succeed

Customer retention and loyalty

Acquiring new customers is important, but retaining them is equally critical for fintech companies. The cost of acquiring a new customer can be 5-25x higher than retaining an existing one. Strategies for improving customer retention and loyalty include:

• Offering a seamless onboarding experience with clear instructions and support

• Providing exceptional customer service across all channels

• Continuously gathering customer feedback and rapidly iterating on the product

• Offering loyalty rewards, exclusive perks, and surprise and delight moments

• Personalized communication and recommendations based on usage patterns

• Gamification elements like points, badges, and leaderboards to drive engagement

Measuring customer lifetime value (CLV) and churn rate is essential for understanding retention. Investing in a customer success team and initiatives can have a significant impact. Here are some additional articles about the importance of client retention and how to help achieve it.

• Customer Churn: The Struggle Is Real

• The Client Retention Lifecycle: Departmental Roles

• Client Retention - The Marketing Department's Role

• Customer Retention - Product Development and Sales Dept.

• Client Retention - Operations, Support, and C-Suite Roles

Conclusion

Marketing fintech products requires a strategic, multi-channel approach that puts the customer at the center. By deeply understanding the needs and behaviors of your target audience, you can craft messaging and tactics that resonate. Building trust and credibility through thought leadership, media coverage, and customer-proof points is essential. Meeting consumers where they are with valuable content across search, social, and partnerships can drive acquisition. Continuously delighting customers post-purchase with an exceptional product and service experience can boost retention. As the fintech industry evolves and matures, marketers must stay agile and adapt to changing consumer preferences and competitive landscapes. But by staying true to your brand purpose and always putting the customer first, you can build lasting relationships and a loyal following.