Marketing is crucial to FinTech success, but not for the reason you think
Marketing is crucial to Fintech success
Marketing is crucial to FinTech success, but not for the reason you think, historically new technology has always struggled to gain acceptance and adoption. And so it is with FinTech – there may be thousands of genuinely useful, revolutionary products and services making their way to market, but the biggest challenge each faces is the battle for hearts and minds.
The first Chip and Pin authenticated card payment was completed in 2003 here in the UK, quickly becoming the industry standard. Yet despite the obvious success of the program (improved identity authentication, reduced fraud), US banks only began rolling out a similar system this year.
Why was the US so far behind the UK in this instance? Ultimately, neither banks nor consumers understood the benefits of Chip and Pin. Or to put it into a single word – ignorance.
The same challenge faces any new FinTech product, and there is only one way to win – by using great marketing to educate stakeholders about the available benefits and defeat common arguments.
High profile hackings, e-crime and general fraud have all conspired to create a hugely sceptical public. Almost every day, a new scandal emerges that damages reputation and increases consumer distrust of the finance industry. Which is a shame? FinTech advances are often specifically geared towards helping average consumers get a better deal, or to carry out financial transactions more quickly, efficiently and (ironically) securely. And they are invariably built to adhere to common banking standards and compliance frameworks, offering users the levels of protection to which they are accustomed.
Overcoming this fear is a job for the marketing department, crafting content and campaigns that educate and reassure customers, as well as telling them about how new features can enrich their lives. Successful FinTech marketing is not only about identifying and addressing the needs of the target audience, but also their fears.
Many common concerns that hinder uptake of new technology centre on transparency – what is done with the personal information captured by these systems? Although not a FinTech development, the Google Glass project was destroyed by uncertainty over how the technology worked, and how it was being used. Google’s own secretive data collection and analysis techniques only fed into the paranoia that saw Glass banned from a number of public places in the USA.
The same goes for biometrics-based data. People readily understand just how unique and powerful their fingerprints are, making them less enthusiastic about sharing them with businesses. As other technologies come on-line – like facial recognition – these concerns will only increase.
Apple has made some considerable fuss about their Touch ID fingerprint scanning systems, confirming that all encoding and decoding and identity authentication is carried out on the owner’s iPhone. Scanned prints never leave the device, ensuring that they cannot be used for any other purpose, nor be accessed by cybercriminals attacking Apple’s data centres. By making a fuss about this key aspect of the Apple Pay experience, marketers have begun winning over customers, encouraging them to use the technology.
It is vital then, that marketing efforts seek to calm these fears before taking products to the mass market. Complex concepts need to be explained simply so that consumers are left in no doubt as to how their data is being stored and used; ambiguity is certain to reduce success once a product goes on general release.
For more help and advice on creating FinTech marketing campaigns that help overcome consumer concerns and help sell your new service, give the Bias Digital team a call today on 0203 637 4426.