The 3 most important things that Fintechs should concentrate on
The 3 most important things that Fintechs should concentrate on
Fintechs, financial institutions and other companies such as Apple, Facebook, Google, and Verizon are all vying for consumer spending by providing engaging, frictionless payment experiences. Many fintech companies focus on solving specific pain points, which can help them stand out from the competition. However, the payments space has become so crowded that even the best technology is no longer sufficient. It also boils down to the narrative you tell about yourself.
How do you present a compelling business case to banks and credit unions that differentiates you from the competition? How do you establish trust and momentum with consumers and business-to-business customers?
Our experience working with fintech and financial services clients has taught us one thing: your communications must be as innovative as the technology you are utilizing. If you are a fintech company that specializes in payment solutions, here is where we believe you should concentrate your efforts right now.
The three most important things that fintechs should concentrate on
Describe how your solution has a significant impact on the world
Payments are the most common type of financial interaction, but even the most basic functions can cause problems from time to time. Is your fintech payments solution designed to solve a problem or fill a specific niche need? Make certain that your company's brand story highlights the positive impact that technology can have on both the customer experience and the bottom line.
Consider the possibility of instant issuance for debit and credit cards. Providing an instant virtual card becomes a differentiator when many financial institutions still require customers to wait more than a week to receive new or replacement plastic cards. If that is your fintech sweet spot, you may be able to attract more attention to your marketing efforts if you emphasize how your solution helps a bank earn top-of-wallet status.
Concentrate on communicating the benefits that your payment solution provides, regardless of the function it performs.
Establish credibility by presenting a compelling fraud and security story
For the first time, the events of 2020 served as a powerful catalyst for widespread adoption of electronic payments. As a result of these changes, payment fraud has risen to unprecedented heights, with card-not-present (CNP) fraud now being 81 percent more likely than point of sale fraud. 3 Emphasizing your security capabilities should be a central component of your marketing communications strategy for fintechs operating in the payments space.
Consider how many different digital payment scenarios can be affected by CNP fraud when we think about it. Shopping online and making a payment through PayPal. It was a business lunch that was paid for with a mobile wallet. Roommates swapping house expenses via Venmo is a great idea. Purchasing mobile applications using only a fingerprint or face ID. Payments are becoming a nearly invisible part of everyday experiences in a plethora of situations – but this only works if users believe they are in a secure environment.
How does your fintech payments solution foster a sense of confidence? As an example, does it incorporate biometric authentication or real-time location tracking to increase overall security? It is critical to tell a compelling security story that focuses on fostering confidence and credibility in order to help you get ahead in your career.
Develop communications that financial institutions can use to communicate the value to customers
As fintech pioneers, you are the ones who know the most about how your solution adds value to end-users. Avoid making financial institutions do all of the explaining if you are selling to them directly. You can help to fuel those fintech-bank collaborations by providing innovative communications about your solution that a bank or credit union can incorporate into their own marketing communications.
Working with a top 5 bank on marketing communications for more than a decade, we discovered a number of services that could make a customer's financial life easier, but that were often unknown or underutilized by the general population. Although there was content, the messaging was perhaps a little too functional. Because it did not resonate with the needs or concerns of the customers, they did not pay attention. That represents a missed opportunity to increase revenue or improve the customer experience, which is why it is so critical to communicate the benefits of your solution to potential customers and clients.
You should consider expanding your offerings as a payments fintech provider to include customer-focused content such as key messages, infographics, and explainer videos, among other things. It is a win-win strategy that can assist you in closing sales while also assisting financial institutions in increasing the return on their investment in your solution.
