Are fintechs and insurtechs bad at PR?

According to business intelligence tool Crunchbase, there are over 25,000 fintechs and 2,000 insurtechs in the world today. With more than 300 additions to their database in the past year alone, new startups are constantly coming online. Every new business must ensure the awareness and trust of both consumers, partners and investors. Good PR is a critical step in that endeavor – yet so many founders seem to misunderstand what PR is and what benefits it can bring to their business.

As a journalist, I get to see first-hand the inconsistent and sometimes haphazard way some fintechs and insurtechs – especially newer players – approach the subject of PR. So we asked two industry insiders, with long lists of fintech and insurtech clients, to give us their perspective on raising awareness as a new business.

Do fintechs and insurtechs understand the need for PR?

One of the first mistakes entrepreneurs make is to assume that they are too small for PR, or that brand communication is only for larger players with entire teams of people. This is not the case; in fact, as a start-up company, the need to raise awareness in the days after launch is more important than at any other point in a company’s journey. Research suggests that 20% of businesses fail in the first year – so it’s important to get your name out there.

Fortunately, startups today seem to understand the need for PR. According to Kimberley Waldron, founder and CEO of SkyParlour – an international communications agency with clients in fintech, payments, cyber security and e-commerce – awareness is increasing.

“I think many modern startup owners understand the importance of PR and are familiar with the benefits it can bring to a business, especially in ultra-competitive fields like technology, fintech and insurtech,” says Waldron.

But there is still progress to be made: “First, there is still some work to be done to ensure that business owners understand the true value that public relations can bring to their company and when to use it,” says Waldron. “As with anything, you get out what you put into PR, so it’s important for businesses to work hand in glove with their chosen PR partner, especially in the early days of a relationship. Ultimately, you have to work towards a broader goal.”

Simon Hayes, CEO of NextGen Communications, which represents an impressive list of insurtech innovators and startups, agrees that we have made progress in cementing the importance of good PR: “Just about every insurtech we meet these days understands the power of PR in helping them build their brand and tell their story – two things needed to fuel the wheels of their success.”

But he accepts that with some clients who have had bad experiences in the past, it can be difficult to remove preconceived notions about the PR industry. Some firms fail the site by charging high fees to cash-strapped startups and then failing to deliver tangible results; or they may throw all their resources at the first pitch, calling in their most experienced and charismatic managers, before handing over the account itself to junior staff.

“The answer is to set clear KPIs up front when using a PR firm, including expected results, outcomes and results,” says Hayes. “Insurtechs also shouldn’t be afraid to ask for case studies and testimonials from real customers. Any PR agency worth its salt will be happy to provide these things.”

Hayes explains that, like any business relationship, it will take time to build trust between an agency and a client. But in general, you should start to see values ​​appear after the first four months.

“The first month will be spent on discovery, strategy and planning, and the next three months on delivery,” he says. “If you’re not sure about the value, you should ask to set up a trial period, like a paid proof-of-concept (POC). This way you limit the downside of your PR investment. If it works, you can continue with a campaign with security and clear, measurable goals.”

What mistakes do fintechs and insurtechs make?

According to our experts, there are some common mistakes both fintechs and insurtechs make when they take their first tentative steps into PR. Kimberley Waldron believes that this is partly due to the fact that many startups have scaled so quickly that they experience challenges in getting their message out.

“We’ve worked with a number of new businesses that fit that profile,” she tells FinTech Magazine. – It is always an exciting perspective, but it is also a period that must be handled very carefully, especially in relation to PR and how a company positions itself.

“Ultimately, as a company evolves, so must its public relations image. There is no value in a company that closes multi-million dollar funding rounds and retains the same messaging, tone or audience as it had when it was a little more than a slide card. While everyone enjoys the early days when companies first struggle to find their voice, the true story of a business is always written later when they are leaders in their field.”

Simon Hayes argues that young startups need to earn their spot: “One of the most common mistakes made by insurtechs is that they only reach out to the press when they want something, not realizing that their ‘fantastic hot news story’ will just get lost among hundreds of other emails in the journalist’s inbox.

“These firms will bombard the press with supposed news, hoping something will be picked up, when in reality it’s more likely to be ignored, or worse, blacklisted. Journalists have pages to fill and limited time, so they need to see you as a useful source of information, rather than an annoyance.

“If these firms do get to meet a journalist, another mistake they make is to ramble on about their own achievements, rather than the value they provide and the difference this makes to the industry.”