FinTech is tough – seems everybody wants a share of technology-enabled financial services. In the Atlanta metro-area alone, a 2016 report by the Technology Association of Georgia (TAG) identified more than 100 established firms, with more start-ups joining this space every year. Here’s a snapshot of Georgia “FinTech Corridor” (a.k.a. Atlanta’s “Transaction Alley”) from the report. That’s a deep pool of marketing dollars, but also a muddy one.
In such a crowded environment, differentiation is more critical than ever. These 100 companies – and more than 1300 worldwide – are competing to capture the same markets using three-pronged marketing strategies: Business-to-Corporation (B2B), Business-to-Consumer (B2C) and Business-to-Partner (B2P). While the messages to each market and segment within may be quite different, the difference between the many FinTech providers may not be clear to targets. Messages get muddied and mixed.
So what approach should FinTech’s take? It depends, of course. In the B2B space FinTechs may be marketing to businesses ranging in size from giant global corporations down to small neighborhood merchants. So marketing messages might range from “Optimize Regulatory Compliance” to “Simplify Your Business.”
To the point, here’s just a few of FinTech payment players concurrently trying to capture SMB Merchants with the “Simplicity” message:
- Square – Originator of the simple “one fee-fits-all” message
- Amazon – “Online transactions made simple and secure”
- Intuit – “Payment processing the way it should be – fast and easy”
- Sage – “Simple Payment Processing”
- Revopay.com – Simple, Secure Online Payment Processing
- Paysimple.com and Simplepay.com – ‘nuff said
Clearly, deep due diligence is required to:
- Understand the many market variables
- Identify key markets/personas
- Select channels that can reach them
- Craft messages/value propositions that will resonate
- Deliver the right message at the right time to the right person
In such a competitive and growing space, FinTech providers have a tough time differentiating their solutions to their markets. Many providers, from start-ups to established global corporations have difficulty seeing out from their own silos. A marketing partner with deep-industry expertise is often required to help them identify and execute on viable go-to-market approaches.
The opportunity cost of not getting it right…not getting a fair share of the pie. Georgia FinTech companies alone report >$72B annually. Obviously FinTech is a massive market, but the waters are often muddy. Our advice to FinTech players old and new: Get your share of revenue by doing deep due diligence with a connected partner who can help you get crystal clear with your marketing.