How Can FinTechs Successfully Implement an Influencer Marketing Strategy?

As as been mentioned in previous articles, open banking is a long way from mass adoption but it is making headway amongst a younger, more tech savvy demographic. Financial institutions now have the task of educating the public about the benefits of open banking to allay their fears over data sharing and to inform them of the myriad use cases beyond payment solutions. Like with any new technology, open banking will win the hearts of consumers once they understand what it can do for them. 

With the younger demographic, this task is all the more important and complicated because traditional banks do not have amazing reputations amongst them. Building trust is a crucial factor in any marketing campaign. Furthermore, millennials are not interested in financial terminology which may be considered outdated and dull. Marketeers need to approach them in fresh ways using the language they are accustomed to. They are also used to excellent functionality from apps in other business sectors and expect the same from the fintech world. Without the features and customer service to support the marketing effort, this demographic is also lost at the first step. 

One way in which financial institutions, both traditional and challenger, can successfully target millennials and the next generation is through influencer marketing. 49% of consumers make purchases depending on the recommendations of influencers and influencer marketing is touted as the fastest growing customer-acquisition strategy for online retail. Some financial institutions are already testing this out. Just a quick glance online brings up thousands of posts on Instagram promoting challenger banks and many reviews of digital banking services on YouTube.

Influencers help solve all of the above-mentioned issues. They talk in a way that their audience understands, they themselves are a part of the target market which leads to a certain level of authenticity even amongst paid advertising and their audience engagement is built on trust. Traditionally product developers use focus groups to test out their innovations. Influencers filming reviews of an app’s functionality are that focus group in today’s marketplace. So, this also solves the issue of ensuring that an app lives up to expectations.

Of course, influencer marketing in the financial sector isn’t straight-forward. Influencers need to adhere to advertising guidelines and behave in a socially responsible way. They also need to understand what they are talking about. An agreement between a financial institution’s marketing department and an influencer should include  a wealth of detailed information and perhaps even a workshop to ensure the communications are not misleading or overly biased. This will be an interesting topic for debate amongst marketeers who can help set standards and bring balance to this promising area.