Top Challenges in the Fintech Industry Today

April 29, 2024

The fintech industry has been a darling of VC firms for many years now, but the sector is not without its pitfalls.

Today, the industry faces various fundamental challenges, including compliance, competition, cybersecurity and innovation.

Those fintechs who can navigate the murky waters will stay afloat and remain profitable for the foreseeable future.

Those who don’t will show that the fintech industry doesn’t guarantee success, despite its grandiose support from VCs and governments looking to boost financial inclusion.

In this article, we’ll review the top challenges facing fintechs today.

Regulation and data protection

Organizations in the financial sector experience an average of 50 cyber attacks every year, according to a global security research report by Fastly, a cloud computing company.

Since governments are there to protect customers, the increasing threat to their data and money has led to tighter regulations.

Consequently, compliance with evolving regulations and adherence to high-security standards has become an opportunity for fintechs to gain a competitive advantage.

But it is not enough for a fintech to comply with regulations and deploy excellent cybersecurity strategies, they must also let their customers know about it. If a business is good at something but does not blow its horn, no one will know and no one will care.

This implies that fintech content marketing must also include a conscious choice to let customers know that your firm is compliant and is committed to securing their data and money.

Growing competition

If a market is providing higher returns than others, it is normal for investment funds to flow there. In the same way, the interest of investors and governments in fintech has led to the proliferation of fintechs.

While growing competition is good for the customers – lower cost and better value – it is challenging for fintechs.

One implication is that fintechs can’t do business as usual. Knowing how fintechs make money, those who want to succeed in this competitive landscape must create superior products, provide better value across boards, and be innovative with their marketing.

As regards the last point, fintechs cannot be satisfied with generic content marketing. They must transition to fintech content marketing – which is laser-focused on how fintechs can win while staying competitive and compliant.

This will include producing data-backed content, avoiding making promises they can’t keep, interviewing experts, prioritizing customer-centric keywords, and building topical authority, among others.

Personalization

Many fintech sub-sectors are already saturated, with fintechs offering the same services without any unique selling points.

Yet, customers are craving personalization; they want to be treated individually rather than as part of a mass.

For example, instead of generic investment portfolios for all conservative investors, they want something designed for their unique situation, which might be different from the next conservative investor.

This is a marketing, sales, and customer service issue.

Fintech marketers must know how to speak to multiple buyer personas by creating content that will resonate with them. Salespersons must also understand the unique needs of each persona and provide personalized solutions. Finally, customer service teams must be willing to provide truly human interaction with every customer.

Fintech firms that can do this will be in a good position to increase sales and customer retention rates.

The opportunities in the fintech industry are still enormous but only those who can respond to prevailing challenges will stand out above the pack.

Excellent fintech content marketing is one of the top tools that you’ll need to navigate current (and future) challenges.

Working with a fintech SEO agency like Mint Position that has skills and experience working with multiple fintechs across the globe can help you upscale your marketing efforts and enjoy better results.

Mint Position uses tried and trusted content marketing strategies, including multi-keyword SEO, subject matter expertise interviews, and social media collaboration. Agencies like this show that there are unique ways to adapt to fintechs to deliver more relevant traffic and leads.

 

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