Why All FinTech Start Ups Must Consider Affiliate Marketing as a Major Growth Strategy for 2021
Financial technology startups have been empowering a broad range of consumers for a great number of years. However, there has always been an overhanging perception that technology advancements in the finance sector were only for savvy, wealthy investors who were “in the know.” One thing that the COVID-19 pandemic has brought to light, though, is that “regular” people can be proactive and resilient when given the opportunity and presented with the right tools.
The fintech space had been heading in this direction for some time already. But now, more and more customers from “Main Street” are entering the market and this could mean huge things for the industry. The opportunity and challenge for fintech providers, then, is to get the attention of this new generation of users who are keen to manage their own money and make their own investments.
The Rapid Growth of FinTech in 2020
Faced with growing uncertainty around the possibility of job loss, a growing segment of the general population started taking a more serious look at money management and sources of income beyond their biweekly paychecks.
In 2019, retail traders accounted for around 10 percent of stock market activity on a typical day. This figure doubled to about 20 percent in 2020, according to Citadel Securities head of execution services Joe Mecane. The significant growth in investing from individual investors spurred a huge influx of interest in fintech services, apps and platforms.
According to a BrokerChooser survey, trading accounts tripled globally over the same time period. From South Korea to South Dakota, consumers have experienced a growing democratization of investing thanks to tons of amazing apps and the wealth of knowledge available online. A growing number of people are inspired to track their expenses better, get out of debt faster, and manage their money smarter.
Increase Visibility with Affiliate Marketing
Both experienced investors and people who are new to the market are looking for fintech solutions and platforms that best address their particular needs. They’re keen to learn and educate themselves about what is out there, but how do they find out about the different apps and service providers? The choices can sometimes feel as overwhelming as the investment decisions themselves.
Looking ahead toward the rest of 2021, it’s clear enough that fintech companies will face a lot of stiff competition. Brand visibility, user education, and authentic engagement are what will really fuel growth. Good relationships with many referral partners are incredibly important. As users seek out information and recommendations, they will oftentimes lean on the individuals and publishers that they trust and respect.
Affiliate marketing is going to be one of the most powerful channels for brands to get their name out there in front of prospective customers, cutting through the cacophony of the internet and getting ahead of the competition.
Powerful Market Performance
From futures to forex, index funds to mutual funds, performance and risk management have always been the name of the game. Another growing trend in fintech specifically and in the financial markets generally is that individual users are feeling more and more emboldened to control their own fates.
And, it looks like it’s paying off. According to Reuters, the most popular picks among retail traders in 2020 actually outperformed market indexes and hedge funds. The article went on to highlight “a new generation of stuck-at-home traders wanting to sharpen their skills on stocks.” Online trading platforms experienced an unprecedented flurry of activity, as first-time investors weighed in on a multitude of investment vehicles. They looked not only to stocks and bonds, but also in crypto, real estate, and even less common asset classes like artwork and farm equipment.
Fintech startups and established players alike naturally prioritize return on investment in much the same way. As the fintech industry and the new wave of investors don’t necessarily follow traditional norms, more mainstream marketing channels may not be as effective as more modern approaches. Performance marketing with a good affiliate program offers a win-win-win situation.
The advertiser has a powerful way to distinguish their unique selling points, investing in quality, targeted leads that convert. This drives growth and delivers results. The affiliate enjoys high payouts with rewarding partnerships, presenting fresh and innovative solutions to their audiences. And with so many similarities between fintech apps, users benefit from being drawn toward the best programs and platforms.
It’s an incentivized experience for all parties involved, driving precisely the lucrative returns and growth that all parties desire. The ongoing growth in fintech in 2021 is not only among investments, but also in such areas as personal banking, wealth management, payroll, invoicing, P2P payments, and more.
Empowering Customers and Fueling Growth
It’s all about empowerment and seeking the right results-driven solutions. The growing rise and diversification of fintech among the mainstream consumer really speaks to this. Investors want to be empowered to make sound financial decisions, including how they choose to manage their money, track their expenses, and develop their investment strategy. This means providing investors with the data and tools to make informed decisions.
To reach this rapidly expanding cohort of individual investors and increasingly savvy users, fintech companies must first get their attention. And when they do, they need to communicate their unique strengths and unique selling propositions in as efficient and as effective a manner as possible. The right affiliate program connects these companies with a network of thousands of savvy, motivated marketers who know the industry and know their audience.
Just as investors seek cost-efficient investment vehicles that maximize their return on investment, the same holds true for fintech solution providers too. With a marketing plan that involves pay-per-lead or pay-per-call campaigns that reward only effective performance, fintechs can tap into a growing market through robust partnerships driven by growth.
The move toward rapid digitization is already well underway. Cryptocurrencies are on the cusp on mainstream adoption, right alongside fiat currency and more traditional assets like gold and silver. Digital-only banks, blockchain technology and other fintech solutions are chipping away at traditional banks at an accelerating rate. Consumers feel increasingly “disconnected” from their financial providers. More modern takes from the fintech industry, by comparison, speak directly to the needs and wishes of these customers.
A growing generation is being raised in a digital-first environment. Fintech in 2021 will build on that innovative ways, empowering users with the knowledge and tools they need to succeed. Vibrant Performance is an Affiliate Partnership Agency, specializing in the acquisition of quality customers for financial technology start ups through referral partnerships among bloggers, influencers, mass media brands, and other affiliate channels. Click Here for a free evaluation.