Last Friday was my annual holiday shopping trip, and I was equipped with holiday music on the radio, peppermint mocha in my hand, comfortable shoes on my feet, and my direct mail and email ads and coupons in my purse. To fill in the “gift gaps,” I also did some online shopping, using the popular fintech money transfer app, PayPal, to pay for my purchases.
Fintech––or Financial Technology––is an emerging industry providing financial services ranging from cryptocurrency to mobile payments via software, cloud, or other technology. Between fintech startups and established financial institutions using it to reach potential customers, the fintech industry is expected to surpass $1 trillion, servicing nearly 2 billion people worldwide in 2019.
2020 Fintech Outlook and Trends to Watch
According to Comperemedia, the economic outlook for the fintech industry in 2020 is optimistic. Fintechs will continue to grow and attract consumers by providing these benefits:
- Expanding consumer credit and driving consumer spending;
- Providing no minimum balance requirements or overdraft and ATM fees; and,
- Eliminating barriers to investing by providing secure automatic savings and micro-investment options.
Forbes identified the following fintech trends for 2020:
Robotic Process Automation (RPA) = Expanded Customer Support
Through RPA, a bot maintains records and transactions, makes calculations, and performs tasks. Using RPA will eliminate manual keying time and allow fintechs to focus on providing higher-value customer support.
Cryptocurrency = New Services
Cryptocurrency is a digital currency using encryption to regulate and verify the transfer of funds. Expect new technology and product offerings from crypto to cash and crypto to e-wallets.
Partnerships, Mergers, and Acquisitions = More Relevant Products and Services
Fintechs may merge with marketing, big data, and other non-fintech software companies to drive customer acquisition and retention.
Successful Fintech Marketing Campaigns
Marketing activity in direct mail, email, and online channels ranged from minimal to strong among many of the featured fintechs. Emerging fintechs with limited marketing budgets relied heavily on press mentions. When TheStreet highlighted the top Fintech companies of 2019, I couldn’t help but research what direct marketing channels these companies were using—and it should come as no surprise that many of the most effective fintech marketing strategies include mail.
Here’s what Competiscan shows for the last 12 months:
- SoFi—Sofi sent 186.6 million pieces of mail, 12.3 million emails, and had 1.7 billion SEM impressions. They also used online display and social media for lead generation. SoFi has also branched into fintech applications such as robo-advising and insurance.
- Avant—Avant sent 25.7 million pieces of mail, 8.0 million emails, had 261.8 million SEM impressions, and used online display and social media to attract customers. Avant helps consumers get instant loans online.
- Credit Karma—Credit Karma sent 36,000 pieces of mail, 247,000 emails, had 2.3 billion SEM impressions, and also used online display and social media to attract customers. Credit Karma provides free credit scores and credit recommendations for consumers.
Fintech Marketing Best Practices
Here are a few direct marketing best practices fintech marketers can use to attract new customers and increase response:
- Omnichannel Marketing: Use direct mail in combination with email, display, social, and mobile direct marketing campaigns.
- Personalization: Consider adding a personal tagline to the outer envelope of your direct mail campaigns: “Jane, is financial security one of your resolutions for 2020?”
- Highlight Benefits: Include a sidebar with color and icons to highlight the benefits of your product compared to others.
If you are a fintech marketer and want to expand your direct marketing efforts, we can help you be successful in 2020. Contact IWCO Direct today!
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