Technology has invaded every space, and banking and finance are included. Today nearly 9 in 10 Americans use one Fintech app. FinTech will be worth about $174 billion in 2023 and grow to $188 billion by 2024.
Fintechs provide convenient banking services and operate as digital banks. Users enjoy investment services, loans, crypto trading, savings, and payment services on these apps. Major fintechs include Visa, Stripe, and Nubank.
Marketing for fintech is critical due to the stiff competition in the Fintech space. Read this guide to see some effective strategies to keep your customers and make profits on your FinTech app.
What Is Fintech Marketing?
FinTech marketing involves all the strategies and skill set to create awareness for a FinTech firm. It also extends to building customer relations and fostering engagement with the customer. In essence, Fintech marketing facilitates customers’ attraction to a fintech brand.
Fintech marketing is critical to simplifying the app’s message due to the technical nature of digital finance. It also bridges the potential app users’ financial literacy gap. The strategies for marketing a fintech are similar to regular digital marketing strategies, but they can be tailored to the Fintech niche.
How SMS Improves FinTech
The usage of SMS in the Fintech Industry occurs in four major ways. Let’s look at some of them.
Add extra security measures
Fintechs can guarantee security of transactions using mechanisms such as 2-Factor Authentication, which means two steps are required to begin transactions.
One Time Password (OTP) is an example of two-factor authentication, an SMS with a unique number sequence sent to the account holder’s phone number. It ensures that no other person can transact with that account without the account holder’s knowledge. You can enable OTP on your Fintech using an SMS verification service.
Integrate payment reminders
Fintechs use SMS to inform users of payments such as loan repayments and payment of recurring bills or fees. To keep customers in the loop about their financial obligations, SMS is an excellent tool for fintechs.
Use alerts and notifications
Fintechs send SMS to their customers to tell them of debit or credit transactions on their accounts. With SMS, customers get quick and fast alerts on their phones. An advantage of this is that if fraud is discovered on an account, the customer can quickly report this finding and block the account before more damage is done.
Add product promotion to the mix
SMS marketing in banking is useful for advertising new products and services on banking platforms. The open rate of SMS makes it a no-brainer for any serious Fintech to leverage when onboarding new customers.
The Top 10 FinTech Text Marketing Strategies You Should Try
Advertising your fintech app with SMS requires some marketing strategies to succeed. These strategies, when implemented, will drive sales and improve customer experience. Let’s examine them.
Provide educational resources
Investments, compound interests, fixed deposits, and crowdfunding are words that may not be familiar to the average Fintech user. Financial literacy means knowing and understanding how money works regarding investment, savings, budgets, etc. A report stated that about 38% of people lose about $500 from a lack of financial literacy.
Fintechs can help financial illiterates by providing information to elevate their financial literacy. The social benefits of this financial information will make the customers use your services more.
Personalize the messages
When sending text messages to your customers or running ads through SMS, you should make it personal. Mention the customer’s name and use other details in the messages, such as their location. Text personalization is very effective, as research shows that 31% of consumers want to receive personalized text messages from brands.
Knowing the right time to send messages is as important as the content of the message. You should carefully consider the time of the day your customers will react favorably to the SMS. Automation helps you send out bulk messages at intervals without overloading the receiver. You can automate bulk messages with omnichannel marketing software.
State your brand in the messages.
People are bombarded with messages on a daily basis, making it easy for them to overlook yours. You may avoid this by explicitly mentioning your company name in the messages. In addition, you can provide a succinct summary of your services and point the reader in the direction of your website to get more information. Mentioning your brand lends credibility to your messages. e.
Try a community-based marketing model.
Community-Based marketing models are becoming an effective tool in the hands of marketers. It can be especially useful in fFintech spaces where discussion forums are formed around financial products. The community-Based model ensures you get customer feedback and user-generated content to retain their loyalty and drive profit. 66% of brands believe that online communities have a significant impact on customer retention. If you are a fintech startup, you should integrate a community model to scale your business rapidly.
Ensure mobile-focused optimization
An estimated 5.2 billion people use smartphones worldwide. Since fintechs are mostly targeted at mobile phone users, it is important to optimize your website for mobile use. You should keep the texts simple and enable mobile access to the average user.
Another important strategy for SMS Marketing success is to keep track of how customers relate to the messages. Metrics such as bounce rate, click-through rate and conversion rate will tell you how well the SMS campaign is going. Beyond this, you gain an insight into what your customers expect and how to improve therelationship with them. BSG’s Analytics gives you comprehensive data on the progress of your SMS marketing campaign.
Partner with a digital marketing company.
Campaigns necessitate some expertise in order to raise brand awareness. It is pointless to create a fintech app if no one knows about it. You’ll need a partner to assist you with bulk SMS, branding, social media marketing, and other tasks. Working with a digital marketing agency allows you to focus on your core business while leaving marketing campaigns to the experts.
The financial technology industry is extremely competitive, with new platforms joining all the time. A successful marketing strategy gives you an advantage in both retaining existing clients and luring in new ones.