There are many reasons why fintechs startups don’t “make it.” One common reason is that they lack the money or aren’t making profit. Another is that they don’t understand their target market and/or can’t penetrate that market or get broad adoption. There’s truth to all of these.
But there’s another reason why fintechs fail. Hint: it’s not because their software doesn’t work, or they run out of money, or that people aren’t biting.
It’s because fintech marketing strategies are almost nonexistent. (Fintechs are staffed by brilliant innovators, not marketers!) We feel comfortable sharing some basic insights from our experience marketing in the fintech and credit union spaces.
Basic Fintech Marketing Needs
Fintech startups don’t have name or brand recognition. To get that, they need marketing, not sales. And marketing can help you with some basics every fintech needs:
- Communicating brand identity
- Identify target markets and personas
- Knowing how to read and reach out to people
Effective marketing is the key to launching a fintech startup. Here are five tips to get your fintech started:
1. Be on social media.
Choose the platforms that make the most sense for your brand. For example, if you’re in the B2C market targeting Millennials and Gen Z, go for Facebook, Instagram, or even TikTok.
If you’re in the B2B market, LinkedIn is by far your best option.
2. Develop your website and explain your solution.
Countless fintechs don’t show up in Google searches related to their core competencies—or even their own company name! Many sites simply don’t have enough information or content on them for visitors (and search engines) to get an idea about what they do.
If your website has only a splash page and a “contact us” page, you must add more information!
3. Create content such as blogs, videos, whitepapers, etc.
People ignore ads, but they engage with articles and videos. Nobody looks for a sales pitch—they look for information that helps them solve a problem.
Your content should educate leads, thus helping them to informed buying decisions.
4. Use marketing automation and email campaigns.
Email marketing is still very relevant, and marketing automation increases efficacy while reducing work. Plus, automation allows you to leverage both traditional and inbound marketing strategies.
Email marketing doesn’t sound glamorous, but it’s still remarkably effective.
5. Work with influencers and promoters.
Find people in your market who believe in your product; they will talk about you to their peers, giving you an early foothold. Partner with people who can get your name, your mission, and your solution in front of key decision makers in target markets.
Getting featured in industry publications and broadcasts can really help.
Why Fintech Marketing?
There are more fintechs in the U.S. than there are credit unions. And, although not all fintechs are or will be successful, their number is on the rise. On the other hand, the number of banks and credit unions is diminishing as they consolidate through mergers and failures.
In so many ways, the future of finance is fintech. But fintechs need help to grow. And simply having a great idea and a working product won’t cut it. Creating the product is simply the start. Hitting the market and gaining adoption are bigger hurdles than most fintech startups expect.
These fintech marketing tips will help any promising company get started. But we understand that simply knowing a few basics isn’t always enough to succeed.
We’re happy to help fintechs reach the right audience. Here’s how we’ve helped other fintechs launch
Fail Forward Fast: Credit Union Lessons from the Fintech World
When Fintechs Attack: One More Thing for Credit Unions to Worry About