Advances in Fintech Make the Human Element Even More Important in Financial Marketing and Communication
According to Moore’s Law, transistor counts per square inch in computer microprocessors are doubling every year or two. As this might seem logical, technological power also doubles over this same period of time. This incredible technological progress led to the advent of numerous unimaginable technologies such as smartphones and self-driving cars, and the boom in the tech industry simultaneously disrupts and bolsters nearly every industry, allowing the opportunistic to take advantage of a better way of doing things. Even in the space of financial services, new technologies are forcing a shift in how corporations conduct business. New firms, especially those catering to a younger audience, have moved a large portion of their services online and to mobile.
Today, the youngest financial companies appear to be driving a sort of renaissance in financial branding and investment marketing. Many of these startups are seeking to innovate in finance services industry after all, and not only seek to communicate their advantages compared to legacy programs but to utilize marketing and branding efforts to connect to human audiences. The goal is to build market share. New opportunities emerging made possible by technology. One problem remains, though. Because things are changing so quickly, communication is required to help educate consumers of the greater access financial technology companies, known as ‘fintech’, bring. This type of education requires a focused investment branding strategy as well as associated investment communications materials and collateral to help fintech companies achieves greater reach.
In the past, the biggest companies, or institutions, were able to maintain strong competitive advantages through their sizes and reputations. This worked to form moats around these businesses. Today, however, technology is empowering many entrepreneurs to challenge industry behemoths. Within the last decade alone, technology transformed nearly all aspects of finance, bringing the average consumer has access to new services including crowdfunding, pop cash, and robo-advisors. Consumers are also becoming more familiar and trusting these fintech companies, in favor of the institutions.
In one example, the rise of mobile wallets and mobile payment apps have dramatically changed the way individuals pay one another. Rather than carrying cash, or visiting a bank, individuals are able to easily make payments at stores and send money to each other with just a few taps on a smartphone. While fintech evangelists drive adoption of new financial services opportunities, getting regular consumers to buy into ideas, especially when it concerns their hard-earned money, takes a little more effort.
There needs to be a human element and fintech brand strategy consistent across fintech marketing materials and collateral, rooted in a strong fintech brand that addresses a real emotional benefit. User experience is incredibly important in fintech apps and new fintech services, and the successful integration of technology into personal finance still requires a large element of trust, while addresses new consumer needs in the financial services space.
All of the efforts of fintech branding and marketing seem to be paying off. Fintech companies are continuing to grow in influence and popularity, and as a result, the institutional players are taking notice. According to PriceWaterhouseCoopers, over 80% of financial institutions believe that their business is at risk to innovators. These older, more traditional financial services companies are ramping up efforts to adopt new processes or find partnerships in fintech.
Consumers need to know how and why fintech startups benefit them, making fintech branding and marketing efforts essential in remaining competitive. MBC Strategic is an award-winning Los Angeles financial and investment services marketing firm specializing in financial services branding, investment website design and development, and ETF fund marketing.
See how MBC Strategic can provide a competitive advantage to fintech companies – view our award-winning financial services branding and marketing services here.