The fintech sector is moving at breakneck speed. As a result, many companies in the space face a unique set of challenges. Public relations (PR) is vital in helping fintech firms overcome these challenges, while simultaneously building credibility and trust with audiences. However, many organisations stumble at various points along their comms journey, often resulting in them having a poor brand image.
Luckily for you, we’ve created a list of the top five communication challenges fintech companies will encounter in 2024, and how you can use PR to overcome them.
Challenge:
Fintech companies must comply with a number of regulations varying by region, especially in the UK and Europe. These include the General Data Protection Regulation (GDPR), the Second Payment Services Directive (PSD2), and the Fifth Anti-Money Laundering Directive (5AMLD). Explaining these regulations and their implications to customers can be daunting and, if mishandled, can lead to mistrust and legal issues.
PR’s Solution:
PR professionals can help fintech companies craft clear, concise, and compliant messages that demystify regulatory complexities for their customers. By proactively communicating changes in regulations and demonstrating a commitment to transparency, fintech firms can build trust and credibility. Regular press releases, thought leadership articles, and informational webinars can be effective tools in this effort. Additionally, collaborating with legal experts to ensure accuracy and clarity in communication can further enhance trust.
Challenge:
Digital trust remains a hurdle as consumers are still sceptical about the security and reliability of online financial services. High-profile incidents, such as data breaches at companies like Revolut and the mishandling of customer information at Robinhood, have shaken consumer confidence.
PR’s Solution:
PR campaigns should focus on highlighting the robust security measures fintech companies employ. This includes publicising certifications, sharing third-party security audits, and leveraging customer testimonials to build confidence. Engaging with the media to place stories about successful security protocols and incident response strategies can further enhance trust. On top of this, transparent communication about any security incidents, including steps taken to rectify issues and prevent future occurrences, is crucial.
Challenge:
The fintech landscape is crowded, making it difficult for individual companies to distinguish themselves from competitors. According to a report by Market Data Forecast, the global fintech market is projected to reach $644 billion by 2029, growing at a compound annual growth rate (CAGR) of 25%. By the end of this year, the market is expected to be worth $209 billion. With it becoming 25% harder to claim market share year on year - you need to start now!
PR’s Solution:
Effective PR can help fintech firms highlight their unique value propositions. This involves developing compelling narratives around their innovative technologies, customer service excellence, or distinctive product features. Media relations, influencer partnerships, and thought leadership placements in industry publications can amplify these messages, helping fintech companies to carve out a distinct identity. Using data-driven insights to personalise communication can also help fintechs connect more deeply with their target audience.
Challenge:
Today's consumers expect not just a seamless, user-friendly experience but also moments of delight that exceed their expectations. Any service hiccups or communication failures can lead to customer dissatisfaction.
PR’s Solution:
PR can play a big role in delighting customers by ensuring consistent and clear communication across all touchpoints. Crisis communication plans should be in place to address any service disruptions quickly and effectively. Additionally, PR efforts should focus on educating customers about new features, updates, and improvements, reinforcing the company's commitment to continuous enhancement of the user experience. Highlighting positive customer stories and successes can also create a sense of community and loyalty.
Challenge:
The emergence of new communication channels, including newer social media (aka TikTok, not Meta) , chatbots, and AI-driven customer service, presents both opportunities and challenges for fintechs.
PR’s Solution:
A strategic approach to PR involves meeting your target audience where they are, whether on social media, industry publications, or other platforms. Social media can be used to engage with customers in real-time, addressing concerns and sharing updates. PR professionals can also use data analytics to tailor communications and improve engagement across all platforms. Ensuring a consistent brand voice and message throughout the many channels that help maintain a strong, unified presence.
Conclusion
In 2024, and beyond, the fintech sector is poised for significant growth. However, this growth will also highlight critical challenges. Strategic PR is essential to help fintechs navigate regulatory landscapes, build digital trust, stand out in a competitive market, delight customers, and effectively engage through emerging communication channels.
By addressing these challenges head-on with a robust PR strategy, fintech firms can build and maintain strong, trusting relationships with their customers, ensuring sustained success in an ever-evolving industry.