By Dipal Dutta
The increased access to faster and cheaper internet access on mobile devices in the past decade has provided massive opportunities for companies to target customers with custom advertisements in mass. Furthermore, the widespread adoption of social media platforms like Facebook and Twitter has led to a rise in audience-driven digital marketing campaigns in all sectors including fintech. Digital marketing has allowed fintech companies to reach specific demographics with tailored messages, addressing their unique financial needs and concerns. This precision has not only improved customer acquisition rates but has also led to higher retention and engagement levels.
As a result, fintech sector has seen an explosive growth in the past decade. According to a report by Vantage Market Research, the global fintech market size was valued at USD 112.5 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 19.8% from 2022 to 2028. Another study by Statista revealed that the number of fintech users worldwide is projected to reach 4.81 billion by 2028, up from 2.5 billion in 2022. As per Fortune Business Inside, Companies such as Rapyd Financial Network Ltd. (U.K.), Stripe, Inc. (US), Mastercard (U.S.), Finastra (U.K.), and Block Inc. (formerly Square Inc) (U.S.) are at the forefront of this growth, utilizing AI and machine learning to maximize their engagement with users.
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Companies like Mastercard and Finastra are adopting sophisticated digital marketing techniques to attract customers. For instance, personalized email marketing campaigns have been shown to generate an average return on investment (ROI) of 122% in 2023 by eMarketer, while social media advertising has helped fintech brands achieve a 52% increase in brand awareness as per Lyfe Marketing.
Unsurprisingly, the power of digital marketing in fintech has extended beyond just multinational financial giants. It has played a crucial role in democratizing access to financial services for small businesses. For example, the ability to set up accounts for receiving card payments in a matter of seconds has been a game-changer for many entrepreneurs. Digital marketing has been instrumental in spreading the word about these solutions, enabling small businesses to take advantage of them and truly participate in the economic uprising. In addition, gen-Y led fintech companies have forced legacy banking systems to modernize their user interfaces and incorporate AI-driven features to remain competitive.
As fintech continues to grow, digital marketing will undoubtedly remain a critical driver of growth, innovation, and financial inclusion in the industry. As more people will gain access to affordable internet in the coming time, digital marketing will play a crucial role in enabling and empowering individuals and businesses to participate in the economy. As technology continues to advance and consumer behaviours evolve, government policies and regulatory frameworks will be instrumental in sustaining this growth and ensuring that the benefits of fintech are widely distributed.
The author is CEO, founder, RedoQ. (Views expressed are the author’s own and not necessarily those of financialexpress.com)