Social Media as a Key Marketing Tool for Fintech Companies
PropelrrSeptember 13, 2023
Social media has emerged as a crucial aspect of modern-day marketing, including the financial technology sector.
Given the growing popularity of social media as a source of information and entertainment, having a strong social media presence has become essential for fintech companies to remain competitive.
Undoubtedly, social media has revolutionized the way banks offer services and engage with their clients. In the past, banks used conventional advertising channels such as print and TV commercials to reach their desired audience. However, social media has opened up a new channel for banks to connect with their customers on a more personal level.
In this article, we will examine some of the leading fintech companies that have successfully used social media to grow their businesses. From established companies that utilized social media platforms to connect with their target audience and build brand awareness.
What is unique about social media marketing for fintech?
Social media marketing for fintech companies is unique because of several factors that differentiate it from traditional marketing methods. Fintech is a rather new form of banking, and social media platforms allow fintech companies to create personalized content for their customers, leveraging data and social media analytics to tailor to the content that fintech companies offer. One aspect that fintech companies have is that it offers real-time engagement. This allows fintech companies to provide customer support, address issues, and respond to feedback in a timely manner.
Additionally, social media marketing for fintech companies is more cost-effective than traditional methods. Thus, enabling fintech companies to reach a wider audience with engaging content. Indeed, social media has become an essential tool for fintech companies to attract new customers and provide personalized, efficient banking services.
In order to fully understand the benefits of social media marketing for fintech companies, it’s important to delve deeper into why fintech companies need social media and the assistance of a reputable digital marketing agency. Let’s take a closer look at why social media is so important for fintech.
Why does fintech need social media?
Social media has become an essential tool for fintech companies to reach a wider audience and engage with customers in real-time. From building brand awareness to lead generation, social media provides fintech companies with unique opportunities to connect with their target audience and drive growth.
In addition, social media also allows fintech companies to stay on top of the latest industry trends and news, which can be invaluable in a fast-changing and highly competitive industry. Fintech companies can use social media to monitor their competitors, keep up with regulatory changes, and stay informed about emerging technologies that could impact their business.
Indeed, by leveraging social media, fintech companies can not only provide a more personalized & credible banking experience, but also stay competitive in the market.
How has social media transformed communication with their customers?
For banks, social media has similarly revolutionized customer interactions, providing a platform for fast, convenient, and secure service delivery that aligns with the preferences of today’s digitally savvy consumers.
Banks can now use social media to offer personalized services, promote financial products, handle customer complaints, and gather insights into customer behavior and preferences. This enables a more direct and personal connection, fostering better engagement and understanding of customer needs.
Why has fintech adoption grown since the pandemic?
The pandemic has accelerated the adoption of fintech by making people more aware of the benefits of digital financial services and creating a more favorable environment for fintech innovation and growth. The following are the five reasons why fintech companies found exponential growth since the pandemic.
- Digitalization. The pandemic has accelerated the shift towards digitalization, with people relying more on digital channels to carry out their financial transactions due to social distancing measures.
- Convenience. Fintech companies offer more convenient and accessible financial services than traditional banks, with 24/7 availability, easy-to-use interfaces, and quick onboarding.
- Cost-effectiveness. Fintech companies often have lower operating costs than traditional banks, enabling them to offer more affordable financial services, such as lower fees and better interest rates.
- Innovation. Fintech companies are known for their innovative financial solutions that meet the changing needs of consumers, such as contactless payments, digital wallets, and robo-advisory services.
- Trust. Fintech companies have built trust among consumers by offering secure and transparent financial services, backed by advanced technologies like blockchain and artificial intelligence.
The COVID-19 pandemic has boosted the expansion of fintech firms with these elements establishing a conducive atmosphere for fintech development and advancement, resulting in a rise in the use of digital financial services.
What is fintech marketing?
Fintech marketing refers to the process of promoting financial technology products and services using various marketing channels, such as social media, email marketing, content marketing, search engine optimization (SEO), and paid advertising.
The goal of fintech marketing is to increase brand awareness, generate leads, and convert prospects into customers by highlighting the benefits and unique features of fintech products and services.
Fintech marketing strategies
Fintech requires marketing strategies because they help fintech companies to raise awareness, build trust, and acquire customers in a highly competitive and regulated market. Effective marketing strategies enable fintech companies to differentiate themselves from competitors, communicate their unique proposition, and meet the evolving needs of their customers.
There are a variety of marketing strategies that fintech companies can use to grow their business and reach new customers. Here are seven effective fintech marketing strategies:
1. Make the most out of social media.
Making the most of social media is a good fintech marketing strategy because it allows companies to reach a large and diverse audience, build brand awareness and credibility, and engage with customers and prospects in real-time.
- Reach a large and diverse audience. Social media platforms have billions of active users worldwide, providing an opportunity to reach a large and diverse audience with your marketing message.
- Build brand awareness and credibility. Consistent and engaging social media content can help build brand awareness and credibility, which is important for fintech companies looking to establish themselves in a competitive market.
- Engage with customers and prospects. Social media platforms provide an opportunity to engage with customers and prospects in real-time, building relationships and providing valuable insights into customer needs and preferences.
2. Make use of relevant and quality content.
Making use of relevant and quality content is a unique fintech marketing strategy. By providing educational and informative content, you can establish your fintech company as a thought leader and expert in the industry, which can build trust and credibility with potential customers.
Creating quality content can improve your website’s search engine rankings and increase your online visibility, making it easier for potential customers to find you. This increased visibility can lead to more leads, resulting in higher user engagement. As your audience engagement increases, it can potentially foster greater brand loyalty and advocacy.
3. Make branding a priority.
Fintech companies need to prioritize branding in their marketing strategy in order to build trust and establish a strong reputation in the market. Making branding a priority is a good fintech marketing strategy as it allows you to:
- Establish credibility and trust. A strong brand identity establishes credibility and trust with potential customers. In the financial industry, where trust is a crucial factor, having a recognizable brand can help ease customers’ concerns about security and reliability.
- Differentiate yourself from your competitors. In a crowded fintech market, a strong brand identity can differentiate your company from your competitors. By clearly communicating what sets the company apart and what it values, a strong brand can attract customers who align with those values.
- Foster customer loyalty. A strong brand identity can foster customer loyalty by creating an emotional connection between the brand and its customers. Customers who feel a strong connection to a brand are more likely to stick with it over time, even if competitors offer lower prices or better features.
4. Find ways to boost engagement.
Boosting user engagement is a valuable fintech marketing strategy as it can lead to improved customer retention, increased revenue, and valuable customer feedback. Engaged customers tend to stick with a fintech product or service, spend more on products and services, and provide feedback on their experiences, helping the company refine its offerings and enhance its competitive advantage.
So, finding ways to boost user engagement is a good fintech marketing strategy because it can:
- Improve customer retention. Engaged customers are more likely to stick with a fintech product or service, which can improve customer retention and reduce churn rates.
- Increase revenue. Engaged customers tend to spend more on products and services, which can increase revenue for the fintech company.
- Provide valuable feedback. Engaged customers are more likely to provide feedback on their experiences with a fintech product or service, which can help the company improve and refine its offerings.
5. Make use of referral marketing.
Referral marketing is a strategy in which existing customers are incentivized to refer their friends and family to a fintech company. This fintech strategy is often successful because people tend to trust recommendations from those they know.
Furthermore, offering rewards or discounts for successful referrals can encourage existing customers to become brand advocates, leading to the acquisition of new customers. Referral marketing is a valuable way to harness the power of word-of-mouth advertising and grow your fintech business.
6. Take advantage of content marketing.
Content marketing is a strategy employed by fintech companies to establish themselves as thought leaders in the industry and build trust with potential customers. It involves creating and sharing valuable content that educates and informs the target audience.
Examples of content include blog posts, e-books, whitepapers, and videos. By providing valuable information, fintech companies can attract and engage potential customers, demonstrate their expertise, and ultimately convert them into paying customers.
7. Consider Influencer marketing.
Influencer marketing partners with industry experts to promote fintech products/services, increasing reach and credibility. Influencers can create content, endorse products, or provide reviews, generating buzz and increasing awareness among their followers, which can build trust and reputation for the fintech company.
This type of marketing can be especially effective for reaching younger demographics or those who may be difficult to engage through traditional advertising channels. By leveraging the credibility and authority of influencers, fintech companies can establish trust and build strong relationships with potential customers, ultimately driving growth and success for the business.
What social media tactics can your fintech company adopt?
Fintech companies must keep up with the rapidly changing digital landscape, as customers increasingly favor online channels. Social media strategies are now essential for fintech companies to connect with customers and stay competitive. That said, we will be exploring 4 social media strategies that fintech companies can adopt to not only increase brand awareness but also build trust and engage with customers.
1. Two-way communication.
Two-way communication allows you to interact with potential and existing customers on social media shows that the company values their opinions and is willing to respond to their concerns or questions. This helps establish a relationship and builds trust, resulting in increased customer loyalty and business.
Fintech is a highly competitive industry, and companies that prioritize two-way communication can differentiate themselves from their competitors. This approach helps create a more personalized and tailored experience for customers, ultimately resulting in increased market share.
2. Use relatable marketing.
Due to the sensitive nature of financial information, people are typically hesitant to engage with financial companies. Relatable marketing can help humanize your brand, making it more approachable and building trust with potential customers.
Moreover, since the fintech industry is highly competitive and many companies offer similar products or services, relatable marketing can help a company distinguish itself by highlighting its unique personality and values.
3. Prioritize customer-centric experience
Fintech companies should adopt a customer-centric experience for several reasons:
- Meeting customer needs. By focusing on the needs of customers, fintech companies can develop products and services that better meet those needs. This, in turn, can lead to increased customer satisfaction and loyalty.
- Improving user experience. A customer-centric approach can help fintech companies create intuitive and easy-to-use products and services. This can enhance the user experience, resulting in increased engagement and retention.
- Staying competitive. In the increasingly crowded fintech marketplace, companies that provide a superior customer experience are more likely to stand out and succeed.
- Increasing revenue. Satisfied customers are more likely to use a company’s products or services and recommend them to others. This can lead to increased revenue and growth for fintech companies.
4. Create a safe space for dialogue.
Given the sensitive nature of financial information, customers want to be assured that their information is secure. By creating a safe space for dialogue, fintech companies can foster trust with customers by showing that they take their concerns seriously and are dedicated to creating a secure environment.
Social media provides customers with a platform to voice their opinions and provide feedback. By creating a safe space for dialogue, fintech companies can build their credibility and trust by promptly and publicly addressing customer concerns, showcasing their commitment to customer satisfaction.
Fintech companies who use social media to their advantage
Fintech companies can benefit greatly from using social media to build their brand, reach potential customers, and engage with existing ones. This helps them stay ahead of their competition and adapt to changing customer needs.
In this section, we’ll examine eight fintech companies that have effectively used social media to build a strong online presence, increase brand awareness, and engage with their customers in meaningful ways.
PalawanPay, a digital wallet and remittance service in the Philippines, leverages social media in multiple ways, including:
- Promotions and giveaways. PalawanPay utilizes social media to announce discounts, promotions, and giveaways that attract new customers and retain existing ones. They regularly conduct social media campaigns that offer incentives and rewards to users who interact with their brand.
- Brand building. PalawanPay uses social media to establish and maintain its brand image. They share user-generated content and testimonials that showcase their dependability and customer satisfaction. Additionally, they participate in industry-related discussions to strengthen their reputation as a reliable fintech player,
Paypal leverages social media to provide customer support and promote its products and services. They maintain a dedicated Twitter handle and Facebook page for users to ask questions, report issues, and receive help with their accounts. Paypal also runs social media campaigns to encourage users to sign up for their platform or use their services.
Coins.ph effectively utilizes social media in several ways to promote its brand and services, including running social media campaigns to encourage sign-ups and announcing promotions and giveaways. Additionally, they offer customer support via their Twitter and Facebook pages and provide helpful tips for using their platform. Coins.ph also shares financial education content and promotes webinars and tutorials to enhance their users’ financial literacy.
PayMongo is a payments processing platform that helps businesses in the Philippines accept payments online. It leverages social media in several ways to benefit its business.
- Firstly, they announce promotions and giveaways through social media campaigns to engage and retain customers.
- Secondly, PayMongo uses social media to establish partnerships and collaborations with other businesses to expand their reach and credibility;
- Finally, they share educational content such as blog posts, infographics, and tutorials on payment processing and fraud prevention to help users understand the fintech industry and use their platform effectively.
Maya, a digital finance platform in the Philippines, leverages social media to its advantage in several ways. They offer customer support through Twitter and Facebook, build and maintain their brand image through user-generated content and industry-related discussions, and create a sense of community by sharing user stories, hosting events and webinars, and engaging with their followers.
GCash leverages social media in various ways, including offering promotions and giveaways to attract and retain users through social media campaigns. Additionally, they utilize social media to strengthen their brand image by sharing user-generated content and testimonials that demonstrate their dependability and high customer satisfaction. Furthermore, GCash participates in industry-related conversations to establish themselves as a credible player in the fintech space.
Stripe, a worldwide payment processing platform, takes advantage of social media in various ways, including:
- Brand building. Stripe shares user-generated content and case studies that demonstrate their reliability, success stories, and innovative capabilities to build and maintain their brand image. They also interact with their followers and customers to establish a sense of community.
- Industry thought leadership. Stripe shares fintech-related articles and content to position itself as a thought leader in the industry. They participate in relevant discussions and events to showcase their expertise and thought leadership.
Venmo, a US-based mobile payment service, leverages social media to its advantage through several methods, including: engaging with users to create a sense of community, sharing user-generated content, and promoting the use of Venmo on social media platforms.
Additionally, Venmo uses social media to build and maintain its brand image by sharing fun and creative content that appeals to its target audience, such as memes and GIFs. Lastly, Venmo utilizes social media to announce promotions and giveaways, running campaigns that offer incentives to users who engage with the brand.
Trust is a social element in business
Fintech marketing is perhaps among the toughest and most challenging marketing sectors in the present day because it is a relatively new industry that is constantly evolving. FinTech companies have to compete with traditional financial institutions, which have established brands and customer trust.
What makes fintech marketing unique from other forms of marketing is that it has to deal with customers who are not entirely sure about what they want or need. Many customers are unaware of the full range of fintech products and services available to them, and they may not fully understand how these products work. As a result, fintech companies must invest heavily in educating customers and building trust. To build trust, fintech companies should:
- Be transparent about fees and charges.
- Explain how products work in simple terms.
- Provide excellent customer service.
- Address customer concerns and complaints promptly and transparently.
Indeed, fintech marketing is a challenging and constantly evolving sector that requires building trust with customers who may not be fully aware of what they want or need. Inorder to succeed, companies must prioritize transparency, excellent customer service, and prompt, transparent resolution of concerns. By doing so, FinTech companies can establish a strong foundation for long-term success.
Social media has become an essential tool for fintech companies to reach and engage with their target audience. By utilizing social media platforms, fintech companies can promote their brand, products, and services, as well as establish themselves as thought leaders in the industry.
Here are some key takeaways that you can consider should you decide to engage in social media as a marketing tool.
- Consider the cost-effective nature of social media for fintech companies. Social media provides a cost-effective way for Fintech companies to reach and engage with their target audience. By leveraging social media platforms, Fintech companies can create a sense of community around their brand, increase brand recognition and awareness, and drive customer engagement.
- Showcase your brand through social media. Social media enables Fintech companies to showcase their brand, thereby increasing brand recognition. By participating in industry-related discussions, sharing relevant content, and engaging with their followers, Fintech companies can establish themselves as credible players in the Fintech space.
- Increase your customer reach and engagement through social media. By announcing promotions, discounts, and giveaways, and by running social media campaigns that offer rewards and incentives to users who engage with their brand, Fintech companies can create buzz around their brand and drive user adoption. Increasing brand awareness, reach, and engagement.
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