Female CMOs are building some of fintech’s fastest-growing brands
Fintech has a gender diversity problem.
Women represent less than 11% of board members and 19% of company executives in the fintech industry, market researcher Findexable found in 2021.
Less than 6% of fintech CEOs globally are women, Findexable found, and even fewer are chief innovation officers or chief technology officers.
One position in which they are over-represented, however, is chief marketing officer – and female CMOs are building some of the fastest-growing brands in fintech today.
Sheri Chin, for example, is CMO at Galileo, the payment processing company that operates banks Chime and Varo, which grew customer accounts in Q3 by 40% from 88.8 million to 124.3 million year-over-year.
And Anne Hay is vice president and marketing manager at invoicing platform PayNearMe, which from January 2021 to June 2022 increased transaction volume by more than 50% and increased the number of merchants on the platform by 20%.
“These companies are rapidly expanding financial services by filling unmet needs in the marketplace and creating brands that resonate deeply with their customers,” said Jennifer Tramontana, founder of fintech-focused marketing firm The Fletcher Group, which recently conducted a survey of female fintech CMOs and CMO-adjacent executives.
In October, TFG’s 2022 Female Fintech CMO Report presented the insights the subjects provided and what they mean for the future of fintech. One such insight is that fintech CMOs are generally not concerned about a softer capital environment because it washes out the market for companies without a solid path to profitability.
“It helps drive more discipline with better due diligence and a more critical look at spending and partnerships,” according to the report. “There is a freedom that comes with getting back to the basics of product/market fit and away from ‘growth for every price” and the race for valuations.”
Additionally, according to the report, CMOs don’t plan to cut marketing spend in 2023, and they’re investing more in PR and owned content — especially long-form content, like white papers and e-books, that better tell a story about how their companies are meeting a need.
“To be effective in fintech, marketing teams need to be able to communicate their vision. To the extent that potential customers understand how you’re going to help, that’s where fintech CMOs need to be,” Hay said.
The global nature of the fintech market makes it challenging to adapt messaging. Michelle Faul, vice president of global marketing at B2B payment processor TreviPay, said that makes it even more important.
Although TreviPay is headquartered in Kansas City — not a place most people think of when they think of fintech, but a place Faul says has a healthy tech startup presence — the company counts customers across the country and in 32 countries.
“Make sure you lead with empathy and make sure you adapt your message based on the geography [is important]” Error so. “Even with the way they talk about their challenges, make sure you understand their challenges in their words – it’s one of the pillars of our marketing to make sure they feel heard and we position it in a way they understand.”
That perspective is paying off: TreviPay processes $6 billion in transaction volume in 19 currencies, and the company has experienced recent growth.
Even in a challenging macro economy, fintech marketers are keen storytellers. Although they are passionate about the technology, they are perhaps even more concerned about who and what will benefit from it.
“The one thing I’m really excited about is telling the technology story,” said Priya Rajan, DataVisor’s vice president of marketing. “In terms of providing education and bringing credibility, I think telling the story of these experts in a way that is simple and valuable [matters].”
“In my current role… I’m trying to uncover the story of how DataVisor is truly transforming the way we manage risk today in a way that’s real-time but also cost-effective. Fraud management should not exceed the costs of the fraud itself.” Rajan added. “You need [return on investment]. … Aligning those business goals and being able to connect the dots is something I’m really excited about and super proud of,” she said.
The representation of women in fintech management is steadily improving, mostly in newer firms, The International Monetary Fund found. The business case is there: Citing a McKinsey study, the IMF reported that gender diversity on the boards of non-financial and financial enterprises is correlated with positive economic performance. Citing a Credit Suisse study on gender diversity and corporate performance, the IMF said higher stock prices are too.
The Harvard Business Review also found that female-led financial and investment firms were more likely to “reinvest, create jobs and have higher levels of innovation than their male counterparts.”
“The way women approach and think [things] … I think it’s very important to have that equal representation at all levels,” Hay said. “Organizations will benefit from different ways of thinking.”
