Why Should Fintech Brands Invest in Influencer Marketing?
Fintech brands have been quite slow in embracing social media marketing or advertisements on social accounts. However, they now realize the profit-driving benefits that this channel provides and aim to establish a firm online presence. Fintech brands are also branching out and discovering the powerful world of influencer marketing.
Influencer marketing is growing fast and furiously. From sponsored Instagram ads, blog posts to YouTube videos, and everything in between, influencers are dramatically shaping buying behaviors. There is no denying that the fashion, beauty, travel, and fitness industries were some of the earliest adopters of influencer marketing.
However, influencer marketing also offers huge opportunities for financial services companies. Some of the major adopters of social media were ICICI, INGVysya, HDFC, Axis Bank, among many others. Before we jump into why Fintech brands should invest in influencer marketing, let us cover the basics.
What is influencer marketing?
Influencer marketing essentially is a type of marketing that focuses on the key leaders to drive your brand’s message to the larger market. Rather than directly marketing to a large group of consumers, you hire and pay influencers to promote your brand by writing out the content for your brand.
Influencer marketing often goes hand-in-hand with social media and content marketing. Influencers have the ability to improve a business’s reach, and visibility demonstrates authority and targets the right audience immediately. This is a valuable asset and gives fintech brands a chance to reach a wider audience as compared to traditional advertising. Which is why Confluencr has successfully leveraged their reach for multiple brands including Motilal Oswal – with both achieving desired results, and on occasion – even more.
Many influencer campaigns encompass social media marketing wherein influencers are expected to promote your brand through their personal social media channels.
5 reasons why Fintech brands should invest in Influencer marketing
1. Reach millennials and Gen Z
Since people spend so much time on the internet, they also watch a lot of videos there. A large number of videos on social media sites are made by some influencer or another. A striking of 56% of all internet users watch videos on social media sites like Facebook, twitter, snap chat, Instagram, etc. This means that in one way or another everyone indulges with influencers. This promises greater success on the influencer’s part
2. Build trust through creating a personal connection
An influencer who has the same target market and understands the values of your brands can promote your products and services to new audiences through relatable content.
An influencer can create content that is related to real-life experiences like saving for a wedding, buying a home, investing in stocks, etc. Like the emotion we’d created at Confluencr – with influencer marketing for Angel Broking to drive more downloads and engagement for their stock market apps. The results were satisfying to say the least. Which reinforces our argument that influencers can tell stories and add personal anecdotes to humanize your fintech products. This type of quality content is more about promoting lifestyle benefits than flashing a ‘buy now’ or ‘apply now’ button to your readers.
3. Boost credibility and higher engagements
Your audience will trust influencers. Therefore, partnering with influencers can help boost your credibility. This is a modern-day version of ‘word of mouth’ and ‘product placement marketing.’ Additionally, with so many ads, people have seemed to become desensitized towards display ads. Influencer content does not suffer from the same emotions and can attract audience attention and lead to increased engagement through liking, sharing, or adding a comment. Influencers can also drive other actions like clicks to your fintech brand’s social profile, visits to the websites, entries to contents, etc.
4. Support community and charitable efforts
Fintech products don’t usually generate warm and fuzzy emotions that other products do. Especially since the 2008 financial crisis, the industry has been trying to maintain a positive reputation. Influencer marketing has the power to highlight a fintech brand’s positive and personal side that goes beyond the products through content about local events, charitable contributions, and humanitarian or environmental initiatives.
When you partner with an influencer to whom people follow as their financial advisor and who is passionate about their community or even a certain cause, whether you are a bank, credit union, credit card company, or offer other financial services, you can showcase your philanthropic efforts in honest and genuine ways.
4. Support community and charitable efforts
5. Legal considerations
Due diligence is vital for any fintech company that is planning to step into influencer marketing. All influencers and brands, regardless of their industry and niche, are subjected to FTC or Federal Trade Commission regulations. However, financial services companies have to follow the rules that are set forth by FINRA or the Financial Industry Regulatory Authority. Many national advertising laws require their posts to declare that they are #sponsored or an #ad.
From influencer pitching to content reviews, disclosures, and everything in between, there are many factors to consider. Compliance should be practiced from the very beginning of any campaign. For example, an influencer cannot guarantee a fund performance or suggest a specific investment fund. Your campaign might not even see the light of the day if it is not legally compliant.
Examples of Fintech solutions with an influencer-led approach
The surge in fin-influencer posts over the past few months has showcased that the fintech industry has doubled down on the $15 billion influencer marketing sector.
Upstox offers among the best market trading apps in the marketplace. They implemented influencer marketing strategies across YouTube as they aimed to boost their growth. They collaborated with leading influencers in the financial sector and showcased the features of their app through visually appealing videos.
Revolut aims at employing influencers for specialized campaigns with carefully selected partners and a focus on competition incentives and referrals.
3. Starling Bank
Starling, a British mobile-only bank, has employed influencer marketing campaigns. Their social media campaigns aimed to boost customer awareness of their mobile-only approach to banking and tempt new customers to open an account.
4. Angel Broking
Angel broking aimed at creating an awareness of their share market app by unravelling features and offers in a video format across YouTube through leading influencers in the finance industry. They aimed at educating their audiences on the ease of creating Demat accounts and the steps involved.
Monzo opted for an influencer marketing approach to gain new customers. They also want to be known for delivering outstanding customer service and successfully secure crowdfunding.
Kalrna adopted influencer marketing in style with one of the pioneers of Hip Hop. Snoop Dogg can be resonated with a lot of things, and finance is not typically one of them. Klarna rebranded with a marketing campaign focused on design. Their campaign Smoooth featured lots of random items, and the video ad climbed the charts reaching over 15 million views.
Influencer marketing is not a new channel of marketing. In fact, influencer marketing is a very important marketing strategy, especially if you are trying to gain market share with Gen Z and millennials. Many community banks, credit unions, and financial services businesses like to say that they are friendly and approachable. Influencer marketing gives your fintech brand an opportunity to prove this by conveying messages in distinctive and memorable ways.
Confluencr has pioneered influencer marketing solutions that have now become a staple part of the BFSI marketing mix. In India, we work with 4 out of the top 5 discount brokers, leading insurance firms, global consumer banks, cryptocurrency platforms and many other financial investment brands. With the restraints that apply to finance brands, it’s rather tough to create marketing campaigns that can truly promote the offerings. We have aptly leveraged influencers for an industry that much needed to find newer avenues, to shed off it’s primary image as boring or dull, and therefore now attracting a younger audience as well. Like we did for TradeSmart, one of India’s fastest growing online discount broking firms. To similarly implement influencer marketing for your brand, reach out to us at firstname.lastname@example.org