The finance industry has used a wide range of technologies for a long time. However, these solutions or fintech as an industry did not gather pace until there was a need for digitization and unique solutions. A Statista report claims that between 2012 and 2021, investments in fintech companies increased dramatically. According to a McKinsey report, fintech companies had a market valuation of approximately $550 billion as of July 2023. This figure represents a double rise as compared to what was observed in 2019.
Today’s fintech sector is concentrated on providing customers and the market with value-added options and innovative solutions. Adding value is a crucial component when expanding the customer base. However, customer acquisition can be a little challenging due to the nature of the finance industry. Fintech companies face difficulties in identifying the ideal customer, but as more and more people are looking forward to diversifying their knowledge and portfolio, the acquisition opportunities are limitless.
Challenges faced with customer acquisition
Today’s fintech companies are providing better technology for the tech-savvy Gen Z and millennial populations, either by improving traditional methods or by coming up with better solutions. Additionally, customers have high expectations of the fintech sector and the offered products or solutions. The target customer of a fintech company is searching for a brand that offers an ethical platform, is dependable, and has strong brand value. When fintech users trust the product or technology they are likely to become customers without much probing.
When it comes to customer operations, fintech companies encounter two main obstacles. These are:
- Nature of industry
- Compliance and regulations
Fintech businesses handle sensitive customer data, so they must reassure clients about their security. This can look a bit like fraud detection algorithms, multi-factor authentication protocols, encryption, and more. These features give users the impression that the platform is secure and that transferring money or doing any other financial-related activity is safe. Developing this kind of brand security and recall takes time, which makes it difficult to acquire the right clients.
Another issue is compliance and regulations, as demonstrated by the recent PayTm case and their inability to provide appropriate and better reporting. When it comes to fintech, numerous rules and procedures need to be observed and followed. This covers laws about data protection, cybersecurity, KYC and AML, privacy, and reporting compliance, among other things. Any type of failure can result in a negative brand reputation, which can drive away consumers and eliminate the possibility of gaining new ones.
How can polygon advertising solve the challenges?
Companies can target the right customers at the right time by using polygon advertising, which is an advertising targeting mechanism which uses specific customer’s geographic location. Marketers can target the right audience at the right time by defining an area, which resonates with that of a polygon. This can be understood as customers who receive brand promotions when entering a mall. They start receiving promotional codes SMS or notifications based on a similar advertising strategy. However, the choice of location for fintech businesses must be made with great care.
Putting up a brand advertisement for a fintech business or highlighting a standout feature at a corporate location can be a terrific method to draw in customers. In tier-2 or tier-3 cities, putting up such campaigns in marketplaces can be an excellent way to acquire clients if the solution is targeted at small businesses located in remote areas. Polygon advertising makes it simple to reach a wider audience without dividing them according to their tangible preferences.
Polygon advertising can be useful for fintech customer acquisition in the following ways.
- Precise demographic targeting
- Behaviour-based targeting
- Customized product interest information
Make sure that the campaigns are reaching the correct audience by using a highly targeted demographic area with probable customers. Places like office buildings and college campuses, for instance, may provide access to a younger demographic that would be open to trying out a new fintech product or service. Fintech companies that employ polygon targeting have access to a large amount of data that can help them understand the footprints of their ideal customer. Then, with the use of these audience segments, one can precisely target for customer acquisition.
Behaviour-based targeting is a subset of polygon targeting in which a campaign’s target area is determined by the intent or actions of the target audience. For fintech companies, the audience for this type of targeting can be people who are attending a technology event, focused on finance, or something of the same genre. This can also apply to browsing history, search intent, etc. Based on these observations, customized advertisements and marketing campaigns can be sent to people to acquire customers.
Fintech companies can concentrate on providing information that is focused on their products once they have created intent-based customer personas. These could be personalized interactive information or product-based videos that are appropriate for the audience that is selected via polygon targeting. One important aspect of this customer acquisition-based targeting is the placement of the ads. To reach a larger pool of prospective customers, it is essential to identify the most effective communication channels, such as a message or email marketing.
Targeting the right audience with polygon advertising is a clever and creative way to consider their location, search intents, and other crucial details. As a result, reaching a wider group of people who can convert into customers becomes easier. As a fintech business, one must pay close attention to user intent and location access. At Aroscop, we can assist your company in precisely penetrating the market and identifying the right opportunities through targeted marketing strategies. Get in touch with us to learn more.
