FinTech marketing has come a long way in comparison to old-school product marketing.
It is not solely about selling a product; it is about building a bridge of trust with the consumer.
Though they may offer better experiences, FinTech companies do not have a physical branch or external source of trust, such as a longstanding history like that of a bank loan.
However, they must communicate that trust through marketing, presumably, the hardest possible endeavor for a new company.
FinTech marketing starts with two components: digital trust and compliance messaging. Consumers are asked to trust a new platform with their money and their data, and therefore, all of the messages must convey clarity, honesty, and assurance.
In this blog post, we will discuss how FinTech companies can both use their marketing to lure new users and reassure them that they are safe and credible.
We will touch on how transparent messaging and compliance become effective tools in creating a long-lasting rapport with your audience.
The idea is to convert legal requirements and compliance into an authentic representation of a trusted brand.
The Importance of Digital Trust for Marketing in FinTech
Digital trust is an essential element for the establishment of any FinTech brand.
Many FinTech brands, however, do not have the three to five physical branches of a traditional bank to convey trust, or decades of trust to fall back on, so every interaction with a FinTech user.
Irrespective of whether a website visit, interaction with an app, or customer support is an interaction that can establish digital trust, but can also risk losing it.
For marketers, trust is built through campaigns that incorporate security, credibility, and alignment with user interests and/or activities. The key elements of trust include:
- Readable and understandable privacy policies – ensure that how you manage user data is transparent and simple for users to understand
- Visible security badges – visibly show users that any transaction is protected
- Simple explanations – explain things simply (example: encryption).
Real-life examples:
- PayPal displays how it follows compliance buyer protection policies. It takes care of transaction security guarantees, and two-factor authentication is all prominently displayed, so users can feel secure immediately.
- Robinhood, a US-based financial services company, was scrutinised by financial regulators. It addressed concerns about its communications regarding transparency of its fee structure and risk disclosures. This case proved that transparency is not a compliance obligation, but a competitive advantage.
- Chime is a US neobank, and its messages throughout its app and onboarding email flow emphasize FDIC insurance and unlimited free transactions. Equipped with uncomplicated messaging catered towards its users, it signifies that the users’ money is protected.
Compliance Messaging as a Marketing Advantage
However, if done well, compliance messaging can become a huge opportunity to build trust, reduce friction, and gain new users.
Consumers trust FinTech platforms with their money and their personal information.
A transparent compliance platform with their regulatory responsibilities is critical in driving their decision-making.
When compliance is communicated as a benefit to the user, it enhances the credibility of the brand while still adhering to regulations.
Ways to leverage compliance into a marketing opportunity:
Reduce the legalese:
Terms like KYC (Know Your Customer) or AML (Anti-Money Laundering) can scare users off You need to rephrase these in a way that is user-focused, e.g., “We verify your identity to protect you from fraud on your account”.
Protective measures awareness:
Make sure users understand the security mechanisms in place to protect their information.
Safeguards such as data encryption, secure payments, and monitoring of their accounts. Building these user signals will grow their trust and reduce perceived risk.
Incorporate compliance in onboarding:
Use onboarding emails, app walkthroughs, and pop-up tips to make awareness of compliance easy and non-threatening.
This will help reduce the drop-off rate from user confusion and distrust in a platform that has compliance.
Offer compliance as a point of difference:
Where consumers have a plethora of choices through platforms in one market, showing strict compliance with the regulations can distinguish your brand from others.
Customers take notice of platforms that show strong messaging using regulatory compliance, security, and transparency.
Real-life examples:
- SoFi, a FinTech lender, offers clear disclosures around student loan refinancing and investment accounts, making compliance part of a secure and trustworthy experience.
- Revolut, the digital banking app, opened up user experience and explained their globally agreed licensing and compliance for local jurisdictions in their marketing campaigns – reassuring their international users about the safety of their funds.
- Plaid, a well-known FinTech data platform, sells secure data connections and adherence to strict privacy standards when connecting bank accounts – making compliance a giant signal of trust for its users.
Strategies for Digital Trust & Compliance Messaging
In the FinTech industry, building trust is a two-step process: an ability to establish security and reliability, and the ability to communicate compliance moving forward in a strategic manner.
Successful execution of both of these components acts as a marketing differentiator as well as a way to fulfill your responsibilities in regulating and restoring trust in financial institutions.
1. Clear Dialogue
The best method of instilling trust is clarity. Explain fees, terms, and processes in an understandable way for your user. If there’s any terminology they don’t understand (usually jargon), they will not feel as comfortable completing a transaction.
For example, SoFi does a great job of delineating this; terms are very clear for common lending and investment accounts, which helps users feel smart and secure. Transparency eases smoother transactions for the user and increases trustworthiness from the onset.
2. Safety messaging
Get safety messaging in front of users by providing information on the tools that are used (2-step authorization, encryption, protection from fraud, etc.).
When onboarding a user, including safety messaging in the welcome emails, app interface, and on your landing pages and banners will build trust. Any user would trust a platform that actively demonstrates the protection of their money and data.
3. Social Proof & Testimonials
Customer reviews, testimonials, accounts, and positive press coverage provide credibility signals that have a very powerful amplification effect.
By sharing testimonials or news stories of satisfied users, you show that real people trust your platform.
Whether it is an award, i.e., the best app of the year, usage subscription/customer growth numbers, or media mentions, sharing these outcomes can increase perceived reliability and compliance credibility.
4. Personalized Onboarding & Behavioral Triggers
Make the onboarding flows relate to the roles/behaviors of the users. Personalized welcome emails, contextual in-app tips based on user behaviors, or use scripted or suggested tutorials — should help a new user use the platform concerning a key user.
This improves user engagement and enhances the experience by reinforcing the user-centric and secure nature of your service.
5. Continual Education & Updates
Continually notify users of new features, policies, or security updates.
When a platform shares information about regulatory updates or improvements, it creates confidence in users that the platform is both responsible and cares for the safety of users.
Key Takeaway
These strategies help FinTech marketers develop campaigns that build confidence, reduce friction, and build long-term loyalty.
Conclusion
Digital trust and compliance messaging are now requirements, rather than options, in FinTech.
They are critical to building credibility, reducing user hesitancies, and building sustained loyalty. FinTech marketers can convert regulatory obligations into a trust opportunity by using transparency messaging, security-first messaging, compliance as an offensive marketing strategy, personalized onboarding, and social proof.
By messaging that is mindful and user-centered, FinTech marketers can leverage each interaction to generate confidence in their platform.
FAQs
1. Which FinTechs provide strong trust and compliance messaging?
FinTech companies, such as SoFi, Revolut, and Plaid, successfully build trust through a combination of transparent messaging, highlighting compliance, and user-centric security.
2. Which security messaging should be highlighted?
Trust-building features include two-factor authentication, encryption, fraud monitoring, and real-time account alerts.
3. How could compliance messaging provide a competitive marketing benefit?
When compliance and regulations are communicated well, compliance achieves two things. First, it communicates assurance to the user, and second, it helps position the brand as secure and reliable compared to the competition. Essentially, compliant brands can leverage compliance as a trust-building marketing tool.
4. What aspects of digital trust messaging are important?
Trust signals include clear privacy policies, security badges, simple explanations of how the company will use the data, and transparent terms.
5. Why is digital trust important within the FinTech marketing space?
Digital trust gives assurance to users that their money and data are safe, and more trust creates more engagement within a FinTech platform. So the more trust you add, the more users will adopt and engage with it.
To participate in our interviews, please write to us at sudipto@intentamplify.com.