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Marketing strategies for Fintech Startups: what works?

19 December

With the constant change in the way we manage our finances, fintech startups are emerging at an impressive pace, transforming the way we manage money, apply for credit and invest. This landscape offers exciting opportunities for entrepreneurs, but it is not without significant challenges.

Why are so many fintech startups emerging?

In the last decade, we have witnessed a hype in the creation of these types of companies, and a valid question to ask is why? The answer is not simple, as it depends on a juxtaposition of several factors that have created an environment conducive to financial innovation.

1. Change in consumer behavior

Today’s consumer prefers more agile, personalized and accessible financial services. This has opened the door to more flexible and user-centric companies, which, by understanding these changing demands, have been able to fill the gaps left by traditional financial systems.

2. Technological advances

Technological progress, especially in areas such as artificial intelligence and machine learning, has enabled fintechs to offer innovative solutions that were previously unthinkable. These technologies have paved the way for more efficient, faster and safer services.

3. Increased investment

Interest and investment in these types of companies in general has increased exponentially. Investors, aware of the potential for disruption in the financial sector, have financially backed many fintech startups. This injection of capital has enabled these companies to develop and scale their operations rapidly.

4. Deregulation and data openness

In many places, deregulation has facilitated the entry of new companies into the financial market. The availability of data has allowed them to access financial information in a secure manner, which has been fundamental for the creation of more personalized services.

5. Need for efficiency

Traditional banking, which is known for its bureaucratic processes and obsolete systems, has left room for more efficient and faster solutions. Fintechs have capitalized on these shortcomings, presenting alternatives that eliminate complexity in the management of their users’ finances.

6. Democratization of finance

Fintechs have played a crucial role in the democratization of finance. By making financial services more accessible, they have empowered segments of the population that were previously excluded or marginalized from the financial system.

7. Financial crises and distrust

Episodes of financial crisis have eroded confidence in traditional financial institutions in a large number of countries. Fintech startups, by offering more transparent and user-oriented alternatives, have gained the trust of those seeking safer and more ethical financial options.

Marketing strategies for fintech

Focus on user experience

User loyalty is essential. Large fintechs invest heavily in infrastructure to improve the user experience. From creating intuitive processes to increasing customer support, these measures not only retain existing users, but also attract potential new ones.

Offer 100% digital onboarding

The first step for users is to create an account. At this point, it is extremely important that the onboarding experience is automatic and 100% digital. We must not forget that one of the main differentials of fintechs is the simplicity of their processes, which must be demonstrated from the beginning. By having automatic onboarding, it will be possible to take advantage of advertising technologies and machine learning to achieve exponential scaling.

At Boomit, we believe it is of vital importance to have a customer registration process that is 100% automatic, digital and integrated to the Marketing technology stack. The behavior of users who come to test the product must be measured end-to-end and automatically linked to the measurement platforms used in Marketing. In the following points we will continue to elaborate on this.

Develop a robust advertising strategy

For any start-up business, it is vital to complement the content strategy with an excellent advertising strategy. Especially in the early stages of the company where we must generate the first user base, obtain our first reference costs and begin to define the KPIs for sustainability of the strategy, it is essential to have a robust fintech advertising strategy. At Boomit we have a team of experts in more than 40 advertising technologies, which have been tested and optimized specifically for this sector and industry. We understand how to maximize the potential of machine learning offered by these advertising platforms to maximize RoAS and impact on results.

Adding allies

Strategic alliances with traditional banking institutions can be beneficial. Rather than viewing banks as competitors, working together can enable fintech startups to expand their offerings and reach a broader customer base. It is especially useful for reaching those users who remain wary of solutions offered by technology start-ups.

Additionally, we recommend generating alliances with companies in complementary sectors, which enhance the offer by adding value to other recognized brands through mutually beneficial agreements. For example, it is common to use cashbacks or discounts on the purchase of certain products, or special promotions for users who take the initiative to try the service.

Develop efficient digital procurement channels

This point touches on two different developments, but both are important. On the one hand, the development of the web acquisition channel; on the other hand, a mobile application to create the account and acquire customers. Each of these two technologies has its advantages and disadvantages. At the software development level, the web channel is often more cost-effective, but may have some disadvantages in terms of tracking, attribution and measurement of marketing results.

In particular, mobile apps allow great advantages at the advertising level, since they enable advanced and flexible tracking, which more effectively guides the learning of the algorithms of digital advertising platforms. It is recommended for fintech startups that want to develop a robust marketing strategy to have both a web acquisition channel and one through mobile applications.

Integrate the app to an MMP

There are Mobile Measurement Partners (MMP) such as Singular, Appsflyer and Adjust that can be integrated to the applications and thus represent a significant differential, since they allow the development of a data-driven and results-oriented plan. By integrating the product with this type of measurement tools, we obtain two key results:

  • We are able to more accurately measure and attribute the impact of advertising investments at the media, campaign and ad level. In this way, we will be able to understand with a higher level of granularity which messages generate greater interest in our audience and which ones attract quality users with the intention of buying or using the product.
  • On the other hand, these platforms make it much easier to bring a reliable flow of conversion data to advertising platforms, which, from 2024 onwards, will rely heavily on this to be able to optimize their automatic machine learning algorithms. No fintech company can be competitive if it does not have an adequate technological stack that maximizes the impact of machine learning provided by advertising platforms such as Google Ads, Meta, TikTok Ads or even smaller technologies such as those usually framed as programmatic advertising.

Publish educational content

Given the nature of the industry, user education is key. Develop content strategies that not only promote your services, but also educate users about the benefits and operation of the solutions you offer. Building trust must be a central component of any fintech’s communication strategy.

What are the common difficulties in the sector?

Although the outlook is full of opportunities, we cannot fail to mention the challenges they face. These obstacles, while significant and not to be underestimated, are also opportunities for those companies that are willing to face them with intelligence and adaptability.

1. Changing regulations

Fintechs operate in an environment in which regulations can change overnight. Adapting to this dynamic environment is an undeniable challenge. Startups must not only comply with existing regulations but also anticipate and prepare for regulatory changes, which may require considerable operational agility.

Advertising platforms, for example, are no strangers to this, and are increasingly trying to adhere to the local regulations of each country. This may limit certain advertising tactics and requires a thorough understanding of each digital advertising platform’s policies. The key is to be creative within legal boundaries and focus on building trust and credibility.

2. User education

Introducing new ways of managing finances often requires an educational campaign. Fintechs must devote significant efforts to educate users about the advantages and operation of their services, overcoming the resistance to change of many of them. In addition, they must work on building trust.

Therefore, a significant part of content marketing in this sector should focus on educating the market, using clear and accessible language and providing real examples and use cases.

3. High degree of competence

The growth and apogee of fintech brought with it a notorious increase in competition. Differentiating yourself in a saturated market is a complex challenge. Startups must develop unique value propositions, customizing communication to generate greater impact, and implement

effective marketing strategies

to be noticed among so many options.

4. Security and privacy

Handling financial data implies a great responsibility in terms of security and user privacy. These companies must implement significant security measures to ensure the protection of confidential information.

The security breach can result not only in data leakage but also in loss of customer confidence. If a critical situation arises, it is essential to have the ability to respond through digital channels before the situation reaches a point where it is difficult to contain.

Drive the success of your Fintech

At Boomit, we understand the complexities of the fintech world and specialize in that subject. If you are an entrepreneur looking to take your startup to the next level,

contact us at

.

We focus on the entire journey of the company, from its launching stages, through the challenges it goes through in its maturity and we even work with companies that are consolidating in the market to help them in their expansion stage.

Boomit has developed specific capabilities for the financial sector, functioning as a strategic ally, a tailor-made Growth Partner for companies wishing to take their customer acquisition and retention strategy to the next level.

Remember, success for fintech startups is not only about having a great idea, but also about how you present it and grow it using technologies in the best way. We’re here to help you do just that!

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