Influencer Marketing is the key to Unlocking Fintech Opportunities

According to a 2021 research by web service provider Yahoo, the worldwide fintech sector is worth close to USD 7300 billion and is expected to increase at a rate of 26.87 percent year.

The rapid growth of fintechs has been attributed to a rise in the popularity of digital payments, greater investments in technology-based solutions, favorable government legislation, and growing adoption of intelligent gadgets, among other factors.

Fintechs play a critical role in the digital transaction area as Kenya moves toward a cashless society. Fintech companies must compete in highly competitive markets to stand out, educate audiences about the benefits of their solutions, endear them to their brand, attract them as clients, and eventually turn them into brand ambassadors.

Insurance, property tech, lending, payments, wealth tech, challenger banks, trade tech, digital currency/exchanges, and reg-tech are all examples of fintech solutions. Most brands face a difficulty in simplifying financial products and persuading audiences to use and navigate them efficiently.

Influencer marketing is a vital component of fintech businesses’ marketing arsenals since they cater to a wide range of digitally aware clients that absorb copious amounts of information online that fragmented their attention. Influencer marketing is a notion that has been around for a long time. It is, nevertheless, a successful strategy that satisfies a variety of brand and corporate objectives.

In Kenya, the majority of fintechs are focused on building brands. A core business or communication goal is to raise awareness. Influencers give a brand their seal of approval, indicating that it is worthy of their followers’ engagement and trust. Influencers that promote your brand don’t just talk about it. Their remarks and endorsements have the potential to generate business leads and sales.

According to Droom Media, a worldwide influencer marketing firm, 85 percent of Gen Z uses social media to learn about new products. The fact that 56 percent of all internet users, from Millennials to GenZ, view videos on social networking platforms is eye-opening (Facebook, Instagram, Twitter, Snapchat, Reddit). People consume influencer-related content in one manner or another.

Traditional advertising demands a significant investment, which is not appealing to fintechs, who, despite the need to expand their brands, will frequently choose to bootstrap to finance or sustain their operations. As a result, their advertising budgets are limited or cut in order to sustain business divisions. Influencer-driven content, on the other hand, yields incredible cost savings for fintechs.

According to research from influencer marketing firm TapInfluence, a single piece of influencer content can result in a four-fold return on investment four months after a campaign and an incredible eleven-fold sales bump over the course of the year.

This efficiency forces an increasing number of businesses to adapt to this alternative but highly effective form of marketing, consuming budgets that would have otherwise gone to traditional/mainstream advertising.

Beyond calculating sales figures, fintechs should think about brand attractiveness. Influencers have massive followings, with up to one million followers or subscribers on just one social media platform. According to a global poll of customers, 49% rely on influencer recommendations, and 40% buy because they see an influencer endorsing the company in question.

Fintechs may reach a bigger audience and develop a psychological and emotional connection that encourages the desired attitudes and perceptions by partnering with influencers. This is accomplished through tracking engagement rates, views, shares, and likes, all of which are metrics that broadcast and print mediums struggle to give.

Furthermore, while commercials fade away from TV displays or radio stations after a certain amount of time, fintechs can benefit from the content’s endurance once it is shared on social media sites. Fintechs can profit from long-term audience from content that can be accessed or repurposed for months or years, increasing their visibility and reach.

The writing is on the wall for marketers battling to showcase their solutions to a pool of up to 11 million active social media users in Kenya as the fintech space heats up. When handled correctly, partnerships with the right influencer can provide a fintech company with both emerging and established core audiences as well as possibilities to better impact their solutions.

By Tullah Stephen, Senior Social Media Manager at Chipper Cash Kenya