What Cryptocurrency Means for the Conventional Banking Sector
Bitcoin is disrupting the banking sector by creating enormous interest among institutional investors, creating a need for smart FinTech strategy for brands. 2018 was a tough year in the cryptocurrency space, as the value of Bitcoin tumbled from $20,000 to below $4,000. 2019, however, has been a different story, with the market rebounding and cryptocurrencies becoming a core part of institutional FinTech strategy and banking strategy. So what does the future hold for Bitcoin and the financial sector? How Bitcoin went from novelty to banking industry disruptor Bitcoin, the world’s most popular digital currency, began life as a hobbyist pursuit. Created roughly a decade ago by the anonymous developer Satoshi Nakamoto, Bitcoin was designed to be peer-to-peer digital cash. People could send it to each other with no bank or third party needed to validate the transaction. That’s because Bitcoin transactions are validated not by a bank, but by a technology called blockchain. When one person sends Bitcoin to another, the transaction is confirmed by a miner. This miner isn’t a person with a pickaxe and persistent case of black lung, but rather someone who uses computing power. When Bitcoin transactions are made, miners use powerful computers to compete with each other to solve complex cryptographic puzzles for a small transaction fee. Whomever solves the puzzle first validates the transaction, which is then recorded on the blockchain – a public ledger that can’t be changed. That’s Bitcoin in a nutshell – and you can see why the technology is so transformative. Instead of waiting several days to have a bank clear a transaction, a Bitcoin transaction is completed within ten minutes, in most cases. Other cryptocurrencies with a higher degree of centralized control can confirm transactions almost instantly. Here’s the irony: Bitcoin was created and later developed by a band of misfit programmers who were entirely outside the financial system. Yet today, cryptocurrency adoption is being pushed forward by the financial services, marketing agencies, and companies that Bitcoin promised to make obsolete. Why institutional adoption is driving market growth Bitcoin’s price rebound in 2019 has been driven, in part, by the movement of institutional money into the cryptocurrency space. A few years ago, most legacy financial firms were bearish on cryptocurrencies -Jamie Dimon of JPMorgan Chase famously called Bitcoin a “fraud” that governments “would crush.” Today, Dimon has reversed his position and is pushing his firm headlong into the space. JPMorgan Chase has launched their own cryptocurrency. Facebook, too, recently announced plans for their own cryptocurrency, while Google and Amazon both have significant partnerships with cryptocurrency projects. Why the abrupt about face? As with any radical new technology, skepticism abounds early – “magic Internet money” created by a person named “Satoshi Nakamoto” seems almost too far-fetched to believe. Then, once people grasped the fundamental innovation Bitcoin offered, the financial services sector began to view cryptocurrencies not as a joke, but as an existential competitor. And that’s where we are today. Cryptocurrencies hold the potential to radically transform how the banking sector operates. Using the traditional banking system, the fastest way to get $10,000 from New York to California is to fly it in a plane. In a 21st century hyperconnected world, that seems absurd. Cryptocurrencies makes such transactions instant, as there is no need to wait for third parties to validate that the money being transferred is actually there. That’s the reason cryptocurrencies have become a core part of banking FinTech strategy – and why we’ve likely only seen the very earliest stages of what could be the most significant technological development since the Internet. The takeaway Brands in need of FinTech marketing services should consider one question: Does my FinTech marketing agency have the necessary domain knowledge to provide us with truly informed, high-level digital marketing for financial services? At Bigeye, we understand FinTech strategy and cryptocurrency on a much deeper level than most financial services marketing agencies. When it’s time for your next campaign, we urge you to contact us and find out why Bigeye is so much better.
Creative Marketing Ideas for FinTech Companies
The FinTech space is responsible for some of the most exciting tech innovations in recent years. But has their marketing been as compelling and innovative? The FinTech space has given us an extraordinary number of new products and services. Square has changed the way we pay for meals, goods, and services. Venmo allows us to send money back and forth to friends and family with the press of a button. Roboadvisors allow us to invest in stocks without even speaking to a human for guidance. All thrilling innovations, to be sure. Yet, has FinTech marketing and advertising kept pace with these product innovations? Along with the basics (such as smart content marketing and audience segmentation), let’s take a closer look at some high impact ideas FinTech firms can use to develop successful campaigns. Creatively inspired FinTech marketing ideas Today’s FinTech companies have completely reimagined the way we pay for products and services, conduct our personal banking and send money peer-to-peer. FinTech is also a highly competitive space, however — which means that it’s imperative to have your products and services supported by a compelling and well-executed marketing strategy. While many of new FinTech products are based on transformative new technological leaps, the space itself isn’t especially fascinating for the average consumer. Given that, let’s review a few tips and examples you can incorporate when devising your next FinTech marketing campaign. Make your marketing campaigns and strategies mobile first. Consumer-facing FinTech is largely driven by mobile — just think about PayPal, your mobile banking app, Venmo, Square, Zelle, etc. It’s estimated that two billion people worldwide will use at least one FinTech mobile app within the next two years. This means that everything you do should be optimized for mobile. These efforts should be supported by advanced digital targeting services to help you engage your ideal audience and give them relevant messages. Push out great content that’s highly relevant. You may have the most innovative consumer-facing FinTech product the world has ever seen — but if you can’t tell a compelling story about what the product is and how it can help people, nobody’s going to pay attention. Additionally, exciting new FinTech products often come with a bit of a learning curve, so it’s important to be informational and educational when necessary. It’s important to illustrate how your technology will have a practical impact on the lives of users. Advanced audience analysis can help you segment your market and deliver relevant, customized content. Focus on trust, credibility, and reliability. FinTech products are decentralizing authority. Today, for example, you can use FinTech applications to engage in peer-to-peer or decentralized lending, cutting banks and financial institutions out of the process. If you’re going to minimize the role third party authorities play, trust and reputation becomes ever more critical. Zig when others zag. Sometimes the most impactful marketing or advertising campaign is the one that runs totally counter to your expectations. Domino’s Pizza launched a media campaign decrying the terribleness of their original recipe in order to promote their new and improved pizza. It was a bold — and very successful — approach. Instamojo, a FinTech payment platform, took the same strategy and published an article called “Six Reasons Not to Choose Our Free Payment Platform.” It’s an attention grabber, and that’s half the battle. Create a spectacle. If you’re looking for something that’s truly attention-getting, consider the case of WePay. The payment company deposited a 600-pound block of frozen ice outside of a conference staged by its competitor, PayPal. The ice, which had frozen money embedded within, was a stunt designed to highlight complaints that PayPal was freezing too many user accounts. As you might imagine, the stunt went massively viral, gaining top-level media coverage from major tech and advertising industry publications. The Takeaway FinTech technology moves at breakneck speed, so it’s critically important for FinTech marketing to keep pace. Innovative and exciting new products need to be paired with creative marketing that is equally engaging. At BIGEYE, we’re experts at helping FinTech firms pair their innovative new products and services with the right marketing and ad strategies. We’ll help you reach new audiences and build market share with compelling creative supported by advanced AdTech. Contact us today to discover what BIGEYE can do for you.
Top Strategies for Credit Union Marketers in 2020
While credit unions are almost universally admired, many consumers are still unclear on their benefits. Here’s what credit union marketers need to know. Credit union marketing comes with a significant built-in advantage: Most consumers are predisposed to like and trust credit unions. This, in turn, means they are primed for smart marketing and advertising messages. Let’s take a closer look at some of the most effective strategies credit union marketers can use to connect with audiences. Hammer Home the Core Credit Union Value Proposition Credit unions are (correctly) perceived as less commercial than banks. This makes them inherently more trustworthy in the eyes of consumers. Credit unions, by virtue of their design, also offer consumers a range of benefits that most banks can’t match (cost, accessibility, etc.). This is an incredibly strong value proposition for most people. Credit union marketing campaigns should therefore place a strong emphasis on the distinction between banks and credit unions and the many advantages consumers receive by opting for the latter. Help Consumers Break Free from Inertia Marketers should also consider the reasons why people don’t automatically opt for a credit union, even given the benefits involved. In many cases, the answer is simple inertia. Let’s be frank: Inertia and procrastination are powerful forces. Most of us have to power through our natural inclination to put things off, or maintain the status quo. Bank consumers are no different — and that’s why smart credit union marketers design campaigns with this in mind. Think about how you can incentivize bank consumers to make the switch, whether it’s by using special limited time offers or creating an easier way to sign up. Don’t Let Banks Win on Technology Credit unions own roughly 14% of the Baby Boomer demographic and are doing almost as well with Generation X. However, credit unions are lagging with millennials and members of Gen Z. Why? Part of it is attributable to technology. Banks are farther ahead on the digitalization curve, and younger consumers demand digital-first solutions. In order to stay competitive, credit unions need to target younger consumers. This means staying competitive in terms of technology, and using credit union marketing and advertising campaigns to raise awareness of these efforts. Credit unions are largely viewed as trustworthy and a good deal for consumers, yet they are also sometimes perceived as less than cutting edge. Marketers need to do their part to counteract this perception of stodginess and slow innovation. Segment Your Audience and Reach Them with Targeted Messages We just covered younger consumers and technology — now it’s time to talk about older consumers and their desires. By using market research, demographic profiling, and programmatic advertising tools, credit union marketers can segment their audiences and reach them with highly targeted and relevant messages. In the case of the credit union’s most loyal consumer category (Baby Boomers), these messages should be calibrated to focus on the aspects of the credit union model that most appeal to them: Namely, cost and accessibility. Studies have shown that older credit union members visit their branches much more frequently than bank consumers do. In an era where banks are relentlessly automating and scaling back the human touch, credit union marketers can draw a powerful distinction between that approach and their own more accessible, community-minded model. The Takeaway Credit unions have a powerful value proposition that banks can’t match. Yet they also have their own challenges, particularly with younger consumers. By following the strategies outlined above, credit union marketers can create well-executed strategies that help convince consumers to make a change, or become even more loyal. At BIGEYE, we specialize in forward-thinking, tech-enabled credit union marketing campaigns. Contact us today to learn more about what our marketing strategies can do for your credit union.