Why is marketing so difficult for Fintech companies?

More and more Fintech and digital banking solutions are popping up every month, and with the industry being valued in the billions, it’s easy to see why. The need for digital banking is more prominent now than ever since international payments are becoming extremely slow due to enhanced AML and compliance requirements, and as more businesses become international, services incorporating currency exchange and same-day transfers are a sought after feature.

One issue that Fintech and payments businesses are facing however is the marketing of their products. It appears that getting the “name” out there for start-up businesses is something of a serious challenge. To find out more, we spoke with Marina Lazarou, the current Marketing Manager for WireWallet, the online banking platform founded by award-winning entrepreneur, Andrew Anastasiou.

We asked Marina Lazarou, what can B2B Fintech businesses do to increase their brand awareness and she told us “since we live in the world of technology, it is important for the business to be digitally active, and not just locally active. Your potential customers can be anywhere in the world. Use social media, explain who you are and what services you offer, so that people will be aware”. This would seem to be spot on, as Fintech companies are looking for mass adoption, and not just to operate within a chosen community.

However, one issue for Fintech start-ups is advertising on social media. We put the question to Marina as to why it is such a challenge for these businesses to successfully advertise on the main social platforms and she explained to us that “There are multiple reasons. People won’t easily follow a Fintech business’ page… why would they? You need to give them a reason. Find and understand your target audience, so that you can “speak their language”. Another reason is that the business might also have regulatory demands, so it needs to be careful with what it posts on its social media”.

In line with this, we also asked the Fintech marketing guru how start-ups in the industry can increase their customer base quickly. Marina Lazarou told us that each project needs to figure out who their target market is and not generalize, because by targeting a specific niche you open this niche up to your product much quicker. Marina Lazarou also told us that creativity is key and to research what your target market responds to and not just post with the hopes of getting engagement. Marina quotes that “building trust is key for success, especially in the financial industry because you are handling people’s and business’s funds”.

What is apparent is that the world of online marketing and social media is changing, and with large influxes of potential customers constantly searching for a place where they feel comfortable that their funds are safe, whilst also having the services they require, Fintech companies wishing to get a piece of the pie certainly do need to work out how to acquire these customers.