Many fintechs think their products speak for themselves – It’s simply not true. This article discusses the rise of fintechs in the UK and five classic mistakes they make regarding marketing – and some advice on how to rectify them as proposed by Harvest Digital.
Risen from the ashes of the financial crisis, UK fintechs have filled the gap left by a glut of cash-strapped high street lenders failing to innovate. Digital first with user experience at their core; none of the baggage of financial crises past; no mis-sold PPI or dodgy restructuring to tarnish their image, one might think they were onto a winner.
Most have ambitions of taking on the incumbents. Monzo, the challenger bank, for example, has recently signed up its millionth customer. “Our goal is to provide an account to everyone on Earth,” proclaimed chief executive Tom Blomfield in a recent interview. He has a point. Its bright orange debit cards have become a millennial status symbol virtually overnight.
The UK is a hotbed for fintech startups – a light-touch regulatory framework and tax incentives have created an atmosphere in which innovation can breathe. Most people couldn’t name more than five of these start-ups – and yet, according to EY’s internal analysis, on behalf of the treasury, over 1,600 fintech companies currently operate in the UK.
But not every fintech is Monzo, or even a bank. A plethora of firms working in every space – from international money transfer to retail finance; payment and compliance solutions to online mortgage brokering – are parking their tanks on the lawns of incumbents. But the failure rate is remarkably high. Fewer than 90 percent of startups productise their ideas, or are adopted by the potential users.
About the Author
Mike Teasdale is the Planning Director and Co-Founder at Harvest Digital and heads up the Strategy and Insight Team. He is also an Adjunct Professor at Hult International Business School and helped to set up the IDM’s Award in Digital Copywriting. He has presented at numerous conferences, including three times at SXSW in Austin Texas, and contributed a chapter to ‘Multichannel Marketing Ecosystems: Creating Connected Customer Experiences’. He was recently shortlisted in the Top 100 Influencers of the Year by Creative Pool.