Despite all the differences, Fintech firms and neobanks can often apply the same marketing tactics successfully.
Succeeding in marketing is not about how you advertise a fintech company or a neobank; it’s where it’s the easiest to reach your ideal customers with a message that will convince them of your business’s worth.
Neobank marketing is built upon the combination of concepts that can be applied to the sectors of digital services and the banking industries. Fintech follows the same rule as traditional financial institutions: reliability, trustworthiness, and transparency come first.
Before shifting their money to fintech, even the most eager early adopters will demand that these characteristics be true. Because of this, ‘transparency’ is not simply a marketing fad in the financial industry. Fintech firms cannot keep leading with just technology being the ace in their hand, as the banks will eventually catch up in terms of technology. Currently, transparency is being positioned together by fintech and neobank companies because it will ultimately become the standard in the sector.
2. Affiliate and Influencer Marketing
Referral marketing, affiliate marketing, and influencer marketing all allude to the conventional marketing strategy of forming alliances with outside ‘marketers’ or ‘influencers’ and rewarding them with commissions for each sale they bring in. Affiliates might be expert advertisers, media owners (such as comparison websites), bloggers and influencers in the field.
When discussing personal or business finances, trust is one of the most important aspects of how people perceive your business. If they don’t see it as trustworthy, they will never trust their money with you in the first place.
People trust people. If your idol says they’re using Neobank X, Y, or Z, you’re more likely to trust that bank if they haven’t misled you before. This type of marketing approach works in a more natural way than promoting yourself that you are a solid and trustworthy business.
Many neobanks and Fintech (Revolut, Coinbase, Paypal, etc.) have already used affiliate programs for acquisition
Acquisition
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There are many ways to acquire or to take the acquisition of property and services. How Companies Utilize AcquisitionsIn finance, the term acquisition is most often used when referring to taking control of a company. An acquisition can be either an agreed deal or a hostile takeover. Companies also may acquire units of a company, property, or other assets. An acquisition is when one business, person, or company purchases most if not of another company’s shares to gain control of that company. Buying more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. In finance, there are several types of acquisitions that one speaks of when referring to Acquisitions and Mergers. A horizontal acquisition is when two companies come together with similar products/services. Conversely, a vertical acquisition means two companies join forces in the same industry, but they are at different points on the supply chain.Moreover, a conglomerate represents two companies in different industries join forces, or one takes over the other to broaden their range of services and products. Finally, a concentric acquisition occurs when companies will share customers but provide different services.
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There are many ways to acquire or to take the acquisition of property and services. How Companies Utilize AcquisitionsIn finance, the term acquisition is most often used when referring to taking control of a company. An acquisition can be either an agreed deal or a hostile takeover. Companies also may acquire units of a company, property, or other assets. An acquisition is when one business, person, or company purchases most if not of another company’s shares to gain control of that company. Buying more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. In finance, there are several types of acquisitions that one speaks of when referring to Acquisitions and Mergers. A horizontal acquisition is when two companies come together with similar products/services. Conversely, a vertical acquisition means two companies join forces in the same industry, but they are at different points on the supply chain.Moreover, a conglomerate represents two companies in different industries join forces, or one takes over the other to broaden their range of services and products. Finally, a concentric acquisition occurs when companies will share customers but provide different services.
Read this Term. Not to mention, what you pay for is what you get with affiliates
Affiliates
Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The broker pays only for the clients which end up opening an account. The affiliate marketer doesn’t get any compensation unless the lead ends up depositing. After the acquisition the broker kicks back a predetermined amount to the affiliate. The figure can be fixed or a percentage of a customer’s deposit.This is where CPC or Cost per Clicks come into play. This option is used to drive traffic to the broker’s website. The affiliate is getting paid regardless of whether the client ends up opening an account. Nowadays, this option is rarely used howeverIn the FX space, it is certainly possible to be successful affiliate marketer. However, you need to utilize websites with requisite levels of traffic. For many brokers, affiliate marketing is not their primary source of revenue as the results can be unpredictable and sporadic.
Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The broker pays only for the clients which end up opening an account. The affiliate marketer doesn’t get any compensation unless the lead ends up depositing. After the acquisition the broker kicks back a predetermined amount to the affiliate. The figure can be fixed or a percentage of a customer’s deposit.This is where CPC or Cost per Clicks come into play. This option is used to drive traffic to the broker’s website. The affiliate is getting paid regardless of whether the client ends up opening an account. Nowadays, this option is rarely used howeverIn the FX space, it is certainly possible to be successful affiliate marketer. However, you need to utilize websites with requisite levels of traffic. For many brokers, affiliate marketing is not their primary source of revenue as the results can be unpredictable and sporadic.
Read this Term. You don’t need to pay upfront, as you pay the affiliate per acquisition, so your marketing budget isn’t wasted on efforts that don’t bring you any benefits.
Check out the recent Finance Magnates London Summit 2022 Session on “Challenger Banks, The Challenges (and Opportunities) Ahead”
3. Utilize Community Marketing
Community marketing involves developing close relationships with your target market and integrating the customers into your company’s growth while ensuring you’re directly addressing their needs and desires.
As it appeals to the most fundamental human needs of belonging and sharing, fostering community is one of the most effective strategies to foster commitment and deep emotional long-lasting relationships. A great example of how a company built a community around something mundane from scratch is Peloton. The same can be done for any neobank, given it provides for a certain niche.
Let’s say your neobank focuses more on the marketplace offering of shares, crypto, or other financial instruments. You can easily modify your app to work like a forum, to instill badges on people depending on their successes, and slowly form a community around that. There are hundreds of examples that can be given here.
Taking advantage of that strategy, many prosperous fintech startups, such as 11:FS, Revolut, Monzo, and Finimize, have concentrated their efforts on developing strong brand communities that foster product development, customer retention, and business expansion. These startups invite users to recommend and name future products, offer feedback on current offerings, participate in Q&A sessions, open BETA groups, and attend community meet-ups.
4. Implementing Gamification
With the attention span of the average user quickly decreasing over the years to just 8 seconds, you need more than just a way to keep their attention. One of the best ways to cultivate attention is by spiking the user’s dopamine levels.
This can usually happen by enticing them with prizes, rewards points, or engaging users in puzzles or something visual they wouldn’t normally expect to see. You can use gamification with each new in-app campaign to increase the likelihood of people sticking for longer to know what it is all about.
Monzo, a leading UK retail challenger bank, implemented a waiting list and a referral program to debut their banking app. Users who downloaded the app were automatically sent to a waiting list. While the only way to advance to the top of the list was to recommend the app to a friend. This way, the list would continue to grow while people were eager to start using the beta app.
Final Words
Whether you’re running a Fintech or a neobank, these 4 marketing tactics can enable the streamlined growth of your acquisition and customer loyalty. Study your customers, define a hypothesis of what might work best for them, and test it.
Despite all the differences, Fintech firms and neobanks can often apply the same marketing tactics successfully.
Succeeding in marketing is not about how you advertise a fintech company or a neobank; it’s where it’s the easiest to reach your ideal customers with a message that will convince them of your business’s worth.
Neobank marketing is built upon the combination of concepts that can be applied to the sectors of digital services and the banking industries. Fintech follows the same rule as traditional financial institutions: reliability, trustworthiness, and transparency come first.
Before shifting their money to fintech, even the most eager early adopters will demand that these characteristics be true. Because of this, ‘transparency’ is not simply a marketing fad in the financial industry. Fintech firms cannot keep leading with just technology being the ace in their hand, as the banks will eventually catch up in terms of technology. Currently, transparency is being positioned together by fintech and neobank companies because it will ultimately become the standard in the sector.
2. Affiliate and Influencer Marketing
Referral marketing, affiliate marketing, and influencer marketing all allude to the conventional marketing strategy of forming alliances with outside ‘marketers’ or ‘influencers’ and rewarding them with commissions for each sale they bring in. Affiliates might be expert advertisers, media owners (such as comparison websites), bloggers and influencers in the field.
When discussing personal or business finances, trust is one of the most important aspects of how people perceive your business. If they don’t see it as trustworthy, they will never trust their money with you in the first place.
People trust people. If your idol says they’re using Neobank X, Y, or Z, you’re more likely to trust that bank if they haven’t misled you before. This type of marketing approach works in a more natural way than promoting yourself that you are a solid and trustworthy business.
Many neobanks and Fintech (Revolut, Coinbase, Paypal, etc.) have already used affiliate programs for acquisition
Acquisition
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There are many ways to acquire or to take the acquisition of property and services. How Companies Utilize AcquisitionsIn finance, the term acquisition is most often used when referring to taking control of a company. An acquisition can be either an agreed deal or a hostile takeover. Companies also may acquire units of a company, property, or other assets. An acquisition is when one business, person, or company purchases most if not of another company’s shares to gain control of that company. Buying more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. In finance, there are several types of acquisitions that one speaks of when referring to Acquisitions and Mergers. A horizontal acquisition is when two companies come together with similar products/services. Conversely, a vertical acquisition means two companies join forces in the same industry, but they are at different points on the supply chain.Moreover, a conglomerate represents two companies in different industries join forces, or one takes over the other to broaden their range of services and products. Finally, a concentric acquisition occurs when companies will share customers but provide different services.
Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant’s service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There are many ways to acquire or to take the acquisition of property and services. How Companies Utilize AcquisitionsIn finance, the term acquisition is most often used when referring to taking control of a company. An acquisition can be either an agreed deal or a hostile takeover. Companies also may acquire units of a company, property, or other assets. An acquisition is when one business, person, or company purchases most if not of another company’s shares to gain control of that company. Buying more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. In finance, there are several types of acquisitions that one speaks of when referring to Acquisitions and Mergers. A horizontal acquisition is when two companies come together with similar products/services. Conversely, a vertical acquisition means two companies join forces in the same industry, but they are at different points on the supply chain.Moreover, a conglomerate represents two companies in different industries join forces, or one takes over the other to broaden their range of services and products. Finally, a concentric acquisition occurs when companies will share customers but provide different services.
Read this Term. Not to mention, what you pay for is what you get with affiliates
Affiliates
Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The broker pays only for the clients which end up opening an account. The affiliate marketer doesn’t get any compensation unless the lead ends up depositing. After the acquisition the broker kicks back a predetermined amount to the affiliate. The figure can be fixed or a percentage of a customer’s deposit.This is where CPC or Cost per Clicks come into play. This option is used to drive traffic to the broker’s website. The affiliate is getting paid regardless of whether the client ends up opening an account. Nowadays, this option is rarely used howeverIn the FX space, it is certainly possible to be successful affiliate marketer. However, you need to utilize websites with requisite levels of traffic. For many brokers, affiliate marketing is not their primary source of revenue as the results can be unpredictable and sporadic.
Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The broker pays only for the clients which end up opening an account. The affiliate marketer doesn’t get any compensation unless the lead ends up depositing. After the acquisition the broker kicks back a predetermined amount to the affiliate. The figure can be fixed or a percentage of a customer’s deposit.This is where CPC or Cost per Clicks come into play. This option is used to drive traffic to the broker’s website. The affiliate is getting paid regardless of whether the client ends up opening an account. Nowadays, this option is rarely used howeverIn the FX space, it is certainly possible to be successful affiliate marketer. However, you need to utilize websites with requisite levels of traffic. For many brokers, affiliate marketing is not their primary source of revenue as the results can be unpredictable and sporadic.
Read this Term. You don’t need to pay upfront, as you pay the affiliate per acquisition, so your marketing budget isn’t wasted on efforts that don’t bring you any benefits.
Check out the recent Finance Magnates London Summit 2022 Session on “Challenger Banks, The Challenges (and Opportunities) Ahead”
3. Utilize Community Marketing
Community marketing involves developing close relationships with your target market and integrating the customers into your company’s growth while ensuring you’re directly addressing their needs and desires.
As it appeals to the most fundamental human needs of belonging and sharing, fostering community is one of the most effective strategies to foster commitment and deep emotional long-lasting relationships. A great example of how a company built a community around something mundane from scratch is Peloton. The same can be done for any neobank, given it provides for a certain niche.
Let’s say your neobank focuses more on the marketplace offering of shares, crypto, or other financial instruments. You can easily modify your app to work like a forum, to instill badges on people depending on their successes, and slowly form a community around that. There are hundreds of examples that can be given here.
Taking advantage of that strategy, many prosperous fintech startups, such as 11:FS, Revolut, Monzo, and Finimize, have concentrated their efforts on developing strong brand communities that foster product development, customer retention, and business expansion. These startups invite users to recommend and name future products, offer feedback on current offerings, participate in Q&A sessions, open BETA groups, and attend community meet-ups.
4. Implementing Gamification
With the attention span of the average user quickly decreasing over the years to just 8 seconds, you need more than just a way to keep their attention. One of the best ways to cultivate attention is by spiking the user’s dopamine levels.
This can usually happen by enticing them with prizes, rewards points, or engaging users in puzzles or something visual they wouldn’t normally expect to see. You can use gamification with each new in-app campaign to increase the likelihood of people sticking for longer to know what it is all about.
Monzo, a leading UK retail challenger bank, implemented a waiting list and a referral program to debut their banking app. Users who downloaded the app were automatically sent to a waiting list. While the only way to advance to the top of the list was to recommend the app to a friend. This way, the list would continue to grow while people were eager to start using the beta app.
Final Words
Whether you’re running a Fintech or a neobank, these 4 marketing tactics can enable the streamlined growth of your acquisition and customer loyalty. Study your customers, define a hypothesis of what might work best for them, and test it.
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