Marketing in an ever-changing fintech environment

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Driven by regulatory developments, rapidly advancing technology, ESG concerns and the continued consolidation of our sector, the financial services industry has undergone rapid transformation over the past decade. While online trading and investment platforms continue to grow in popularity, marketers working in the financial services industry face a number of regulatory challenges when it comes to marketing leveraged investment products that have an inherent level of risk.

At the outset, it is important to remember that financial services marketing differs enormously from other product categories; as marketers in our field are tasked with producing content that not only complies with a range of regulations covering product marketing and consumer rights, but is also transparent, educational and insightful.

While working on an eye-catching multi-channel campaign in a highly regulated industry can feel limiting to those who view compliance as a “necessary evil”, successful fintech marketers understand that compliance is not an obstacle to be overcome, but rather an essential component. of financial marketing. Compliance regulations help maintain the integrity of the financial institutions we work for, provide transparency for investors and ensure the viability of the wider sector.

The importance of ethical branding
The large number of participants, both established and new entrants, in the electronic retail of currency makes it one of the most competitive markets to be in. Since most financial service providers offer a similar offer and target the same group of potential customers customers. , being able to stand out against this backdrop requires effective brand differentiation. That said, brand awareness cannot be achieved solely by individual campaigns or advertising efforts. Instead, experienced fintech marketers understand that achieving top-of-mind status for their brokerages requires a well-thought-out, omnichannel marketing strategy that includes inbound and outbound communications, targeted media buying opportunities, paid and organic campaigns, product development, PR activities, and the list goes on .

Due to the often complex nature of online investment products, one of the main goals of your financial marketing plan should be to familiarize customers with the benefits and risks associated with online trading and how the products and terms offered by the broker can give customers a competitive advantage.

Strong, digestible branding combined with free access to financial literacy and education goes a long way towards easing the barrier to entry for new customers. This is an approach we have long advocated at Orbex; we not only seek to promote a competitive, transparent and fair trading environment through marketing efforts, we also educate investors and potential customers by providing them with access to important high-quality resources and curated research. This has been a central part of our strategy.

A new generation of investors
While the rapid growth of the financial sector has resulted in the renaissance of the retail investor, financial marketers are now inadvertently faced with the task of catering to a younger, more diverse demographic. In fact, the average trader looks very different today compared to 15 years ago. Having led the retail investment revolution, Millennials and Gen Z are now a rapidly growing force embracing new investment services and tools.

These young investors also have access to far more information than any previous generation of investors, and constitute a significantly more technologically advanced and demanding audience. Young investors are more likely to engage in their own research and choose brokers carefully, taking into account commission rates, bid/ask spreads and maintenance fees, all of which must be accompanied by strong regulation that can safeguard their invested capital. In short, they expect a higher level of transparency, accountability, security and performance, especially when it comes to their investments.

Although marketing to these younger audiences can be challenging, investing in a positive and recognized brand image, through responsible and transparent marketing practices, enables brokers to achieve a major competitive advantage and ensure business growth by building brand credibility and maintaining strong customer relationships.

Regulatory agility
As we have already established, the promotion of complex financial products through online distribution and advertising channels is being scrutinized by regulators and rightly so. Compliance is an important component of any finance team’s underlying operations, and this is especially true for marketing departments. Over the past few years, and as regulators raise their standards and adjust regulations to ensure customer protection, the importance of maintaining regulatory dexterity is now more prominent than ever.

As regulations evolve, it is often up to the marketing and PR department to communicate how these changes will affect customers’ trading. A solid marketing strategy plan must therefore be dynamic, anticipate changes and maintain clear communication guidelines that can be quickly adapted as the regulatory environment evolves.

To reach new markets
As industries worldwide face the challenge of globalization, it has become imperative for financial services companies to internationalize their services to keep up with the changing landscape. The need for localization has become even more pronounced for online brokers as the transition to digital services opened up the financial markets to a more diverse set of traders from around the world. In a nutshell, localization helps online financial services providers grow at scale, reach new markets and gain ground in previously uncharted territories.

With 75 percent of the world preferring content in languages ​​other than English, localization has many tangible benefits for financial markets departments. That said, locating financial information is a complex process – requiring the highest level of quality, expertise and security, while ensuring compliance with local and global legal standards.

In a client-centric digital world, users have become accustomed to digital experiences that anticipate their actions and are easily accessible across platforms and channels. Personalized, predictive, hyper-relevant client journeys are now becoming the norm, and while collecting client data is the first important step towards successful personalization strategies, there are a number of key regulatory issues that marketers need to navigate.

One of these regulatory concerns became more prevalent in 2018 with the introduction of General Data Protection Regulation (GDPR) privacy rules that sought to give users more control over their data. While consumers have come to expect personalized messages, they are also more concerned about their personal privacy. This means financial marketers must now incorporate an ultra-transparent GDPR approach to collecting the information required to deliver these personalized experiences.

In close cooperation with their compliance departments, marketers should prepare campaigns and communications in a way that clearly discloses to the customer what data is collected and how it will be used with their consent. Consent is the key word here as transparent opt-in data collection methods that allow website visitors to authenticate the collection of their data create a culture of trust between brands and consumers. In turn, businesses that establish trust are more likely to obtain the information they seek from current and potential customers, leading to higher brand equity.

Responsible, data-driven growth
To make an impact in 2022 and beyond, brands will be required to make responsible data-driven decisions, leverage first-party insights and deliver personalized experiences. The key to successful personalization and automation of the client journey is data. Ultimately, more data allows for more data-driven decisions. Recognizing a person’s needs at every touchpoint and delivering a customized experience to best meet those needs is a top-tier marketing strategy that can unlock more potential lifetime value than any hard-sell advertising.

With one of the most powerful applications of data-driven marketing being targeted advertising, collecting useful and high-quality data in a transparent and compliant way will ultimately enable financial marketers to deliver propositions tailored to the individual, resulting in improved conversion rates. In turn, consumers tend to engage more frequently and more meaningfully with personalized marketing communications, making contextualizing interactions critical to remaining competitive in today’s marketing landscape.

“Data done right” involves effectively identifying customer profiles, communication channels and which messages to deliver, eliminating much of the guesswork from media planning and buying. Also, targeted advertising can help generate positive feelings about a brand, as consumers have grown to appreciate well-timed, non-intrusive content and advertising that aligns with their personal interests and needs.

In short, the ethical and strategic use of data to deliver relevant customer experiences is one of the key defining digital marketing skills that can determine which financial services brands are capable of achieving long-term sustainable growth in the future. In an industry that is increasingly competitive and highly regulated, digital marketers must be as inventive as the products and services they are trying to market if they want to stay ahead of the curve. From consumer education and building trust to creating an advertising and communications plan steeped in transparency and compliance, the road to digital marketing success can be as exciting as it is challenging. By being alert to the changes within a rapidly evolving regulatory landscape and able to quickly adapt to the latest trends in digital marketing, financial marketers can build a powerful brand image that inspires long-term loyalty and trust.