The world of finance has experienced significant transformations in recent years, and the COVID-19 pandemic has only accelerated these changes. Even the most traditional industries, including financial institutions, have had to adapt to the new normal. One area that has witnessed a notable shift is the relationship between fintech companies and social media. In the past, concerns over privacy and the security of personal information made financial institutions hesitant to fully embrace social media platforms. However, fintech companies are now finding innovative ways to integrate social media into their marketing strategies, while ensuring privacy and brand safety.
Since the pandemic struck, there has been a surge in fintech adoption. People have turned to fintech solutions for various financial services, including lending, personal finance management, equity finance, and more. In fact, studies show that 73% of Americans now view fintech as the new normal, and 59% report using more fintech apps since the onset of COVID-19. This increased reliance on fintech has led to a rise in customer inquiries and engagement on social media platforms. Fintech companies that have actively engaged with their customers, responding to queries and fostering open dialogue online, have reaped the benefits of these interactions.
Why has fintech adoption grown during the pandemic? Firstly, increased uncertainty surrounding the economy and personal finances has heightened the need for reliable financial services. Secondly, the rise in unemployment rates has prompted individuals to seek out alternative financial solutions. Finally, despite the increase in unemployment, there has been a significant rise in savings among Americans. Those who have managed to strengthen their financial positions are turning to fintech applications to make the most of their savings.
To successfully navigate the world of fintech marketing in the era of social media, here are four digital marketing strategies your company can adopt:
1. Foster Two-Way Communication: Traditionally, financial institutions were known for talking to their customers rather than engaging in meaningful dialogue with them. However, the advent of social media has transformed the way brands interact with their customers. Fintech companies have recognized the importance of nurturing digital connections by encouraging two-way conversations online. Tools like BrandBastion Care provide an easy way to facilitate two-way communication by responding to comments, complaints, and feedback on your brand’s behalf. This ensures that reliable and pre-approved information is shared, while building trust with customers.
An excellent example of fostering two-way communication is TransferWise, an online money transfer service. TransferWise actively engages with users, responding to their questions and concerns promptly and effectively.
2. Create a Safe Space for Dialogue: To create a customer-centric experience, consider organizing webinars, hosting live Q&A sessions, or using social media as a forum for people to ask questions. However, it’s crucial to monitor these conversations to protect your brand and customers. Tools like BrandBastion Safety employ AI technology and human quality specialists to hide harmful comments in real-time, ensuring that your brand maintains a safe online environment.
Indiegogo, an American crowdfunding website, provides an excellent example of creating a safe space for dialogue. The platform promotes open discussions and educational conversations, allowing the community to learn and engage with one another.
3. Drive a Customer-Centric Experience: Just as your company’s application design should be customer-centric, the digital experience you deliver on social media should prioritize customer needs. Create content that answers common questions and addresses financial concerns. Speak in clear and concise language to ensure that your messaging resonates with your audience.
Chime, a challenger bank targeting millennials, exemplifies a customer-centric approach. The bank uses its Instagram account to answer customer questions, engaging in open communication and building trust and loyalty.
4. Use Relatable Marketing: To break down barriers and connect with your audience, adopt a relatable brand persona. Avoid using complex financial jargon and opt for common language that resonates with your customers. Engage with users by responding to comments, initiating conversations, and even injecting humor when appropriate. Tools like BrandBastion Care facilitate engagement by providing pre-approved responses in real-time, allowing your customer service team to focus on more complex cases.
Cleo, a budgeting app, has successfully humanized its brand by adopting a relatable persona. Cleo’s fun and engaging online presence have fostered an active and loyal community.
One of the key strategies Cleo employs is injecting humor into its social media content. They understand that money management can be a serious and often daunting topic, so they take a lighthearted approach to make it more approachable. Cleo doesn’t shy away from playfully poking fun at users’ spending habits or gently teasing them for their financial choices. This relatable and non-judgmental tone creates a welcoming environment where users feel comfortable engaging with the brand.
Furthermore, Cleo actively encourages user interaction through its social media channels. They initiate conversations, pose questions, and encourage users to share their experiences and challenges. By doing so, Cleo fosters a sense of community among its users, allowing them to connect and support one another on their financial journeys. This active engagement cultivates an active and loyal user base that feels personally invested in the brand’s mission.
Cleo’s relatable persona is not limited to its social media presence. It extends to its customer support as well. Instead of using a traditional support ticket system, Cleo employs a chatbot that mimics a friendly and helpful friend. This conversational approach creates a more personalized experience for users, making them feel understood and supported.
The success of Cleo’s relatable branding strategy is evident in its thriving online community. Users not only engage with the app’s content but also eagerly share their experiences, recommend Cleo to friends, and even create user-generated content. Cleo has successfully positioned itself as more than just a budgeting app—it’s a trusted companion that understands the financial struggles and aspirations of its users.
By humanizing its brand and creating an engaging online presence, Cleo has built a strong and loyal community. Users feel a genuine connection with the app, which goes beyond its functionality. Cleo’s relatable persona has effectively transformed a potentially dry and impersonal topic like personal finance into an enjoyable and supportive journey. Other fintech marketing professionals can learn from Cleo’s approach and consider how they can infuse their own brands with relatability and authenticity to foster deeper connections with their target audience.
Mitigating brand safety threats on social media is paramount. Scammers and malicious actors are known to pose as financial institutions, attempting to deceive customers. Protecting your brand and customers requires actively monitoring conversations on social media platforms. By treating social interactions with care and caution, you can build lasting relationships and foster trust among your audience.
In conclusion, the integration of social media into fintech marketing strategies has become increasingly crucial. By adopting effective digital marketing strategies, such as fostering two-way communication, creating safe spaces for dialogue, driving a customer-centric experience, and using relatable marketing, fintech companies can thrive in the era of social media. Embrace the opportunities that social media platforms offer while leveraging tools like BrandBastion to ensure brand safety and customer engagement. Stay ahead of the curve and establish your fintech brand as a trusted leader in the digital landscape.
