Fintech Start-ups can continue the revolution if marketed correctly
FinTech start-ups have ensured the FinTech revolution is well underway, generating huge excitement among venture capital investors have pumped 12 million dollars into the market in the hope of identifying Silicon Valley’s next unicorn. But with the exception of some notable names (Funding Circle and PayPal for instance), few consumer-facing FinTech organisations have made it into the public consciousness.
Obviously, some services have yet to make it across the Atlantic, while others are simply struggling to gain traction with consumers. But the reality is that with more focused marketing they may be able to make more headway.
Targeting the right starter market
The beauty of emerging FinTech services is that they stand to benefit large sections of the general public. But at the earliest stages of a product launch, many customers are unsure about how the service works, or even what the service offers them. Thanks to high profile cybercriminal activity, users are doubly wary when the service involves their finances.
To help drive service uptake, it is vital to target the right market niche who will become the earliest adopters. These people will prove the service works, and help to generate the necessary social buzz to spark interest in other demographic segments.
According to research conducted by EY Global Financial Services Institute, the earliest adopters of FinTech services tend to be “younger, higher-income groups” – “millennials” aged between 18 and 34, earning £105,000 ($150,000).
Even this relatively basic piece of information gives marketers a vital clue on how to reach the people who will drive initial uptake.
FinTech start-ups need to act now
EY also found that around 14.3% of ‘digitally active’ users in the UK have already used two FinTech products. Their research also led them to predict that uptake of FinTech services would more than double by the end of 2016.
This means that FinTech providers offering similar services need to act now if they are to capture the attention of those much-needed early adopters. Apps used to transfer money, or pay for goods (like Android Pay, Apple Pay and Samsung Pay) are already well established with users, leaving marketers facing a tough fight against these industry behemoths.
But for start-ups in insurance or borrowing, the market remains wide open. However, the popularity of the new Aviva Drive app shows how quickly things are moving, helping them steal a march on other insurance providers in the FinTech sector.
As incumbent banks wake up to the threat posed by FinTech start-ups, they will begin developing their own rival services. Given that big banks can leverage their existing brand recognition to drive sign-ups, newcomers need to act now or face being permanently shut out of the market.
Launching a new product or service in the FinTech sector is far from simple, particularly when your niche is not properly understood. Get in touch with Bias Digital today and let us help you understand how inbound marketing can be used to attract those all-important early adopters.