53% of customers claim they would dump their bank for FinTech


53% of customers claim they would dump their bank for FinTech

Customers would dump their bank for FinTech


Many finance industry analysts have been suggesting that incumbent banks will need to adjust or die in the face of the threat posed by disruptive FinTech start-ups. And for the first time, there appears to be some evidence that established banks really do have cause for concern.


Research carried out by the peer-to-peer money transfer service TransferWise suggests that the majority of people would be happy to replace their banks with technology alternatives. In fact, 53% of US consumers questioned said they would ditch their bank accounts now for a FinTech alternative if they had the choice.


FinTech marketing messages are getting through


The same TransferWise report found that 55% of respondents considered FinTech platforms to be at least secure as a traditional bank – often more so. Even high-value services like mortgages and wealth planning are in demand, although the interest in these examples is much lower at present – 9% and 6% respectively.


With loyalty figures like this, FinTech marketing is clearly doing its job, attracting new users to platforms like TransferWise. Equally clear is the fact that FinTech services are delivering on their marketing promises, giving customers what they actually want.


One factor to consider


These figures are certainly compelling, and should be encouraging to any marketer tasked with promoting FinTech services – there is clearly a market ready and waiting for similar products. But there is one small caveat: much of the US-based data comes from TransferWise’s own users, people already using FinTech services.


Time to capitalise


Awareness of FinTech services is on the rise, even if consumers do not fully understand what they are. After a successful London Underground poster campaign, many people will recognise the WeSwap social currency service. They know that they can ‘swap’ currency with other users via a smartphone app quickly and easily and that the platform works.


And in reality, that’s all they need to know at the moment. They’re not bothered about the industry classification – they just want to know that they can access favourable exchange rates without the fuss of going to a bureau de change.


All of which should make the marketer’s job a lot easier assuming they can get their messages in the right places. 


Online is a safer bet


WeSwap may have decided to publicise their service with posters, but this is a high-risk strategy. A large percentage of the people seeing the posters would not be interested in the service, and many would have been disqualified because they do not meet the residency requirements to open an account.


Far more effective is the use of inbound marketing techniques to capture new leads online. Through the use of carefully targeted ads and content, marketers can pull new leads from any demographic of their choice. Using common social platforms, marketers can ensure their messages are shown to the right people at the right time, reducing wasted spend in the process.


When combined with an inbound marketing strategy, these prospects can be targeted again and again, with new materials that address their pains and needs. Under this regime, the prospect remains in control of the entire pre-sales process, freeing up your team (and budget) for use with other promotional activities.


The time is now


FinTech remains fresh and new for consumers, creating a largely untapped customer base for proactive FinTech providers. As awareness grows and people begin to adopt these platforms in large numbers, it will become much harder to establish market share in the face of increased competition.


It is vital that marketers begin launching their campaigns now, particularly if they plan to use inbound marketing. The slightly longer lead time means that action must be taken immediately, or they risk losing out to a competitor who seizes the initiative.


Learn more about inbound marketing services for FinTech providers by contacting industry experts Bias Digital now. Our experienced team understands the unique challenges of your niche, and how to build campaigns that deliver the leads and conversions your business needs.


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Paul Sullivan
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