February 16, 2024
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It’s a crucial aspect of fintech growth, and it’s evolved significantly in recent years. Of course, we’re talking about user acquisition. And guess what? Recently released data reveals this dynamic landscape is tougher than ever.
An analysis of app download data shows just four out of 17 fintechs are on track to beat total downloads for 2023. Moneybox, Raisin and Revolut lead the way on an annualised basis, with Curve and Bitpanda looking set for the largest drop. Meanwhile, Starling and N26 have both seen app downloads plateau.
So what can you do in 2024 to reach more customers and reduce drop-offs? Put simply: keep ahead of the curve. As Ross Smith, our Head Of Performance Marketing, says: “One of the keys to constantly growing your user base is staying up-to-date on what's working and making sure you react the minute it changes.”
From challenges posed by competitors to changing consumer behaviour, here’s how to put together a user acquisition strategy to scale your fintech.
Larger fintechs are rolling out new products in a bid to monetise their existing customer base, while smaller fintechs run the risk of financial instability as they pursue ambitious growth targets. Plus incumbent banks have been innovating and now offer improved mobile banking apps – in the UK, Barclays ranks third behind Revolut and Monzo when it comes to download numbers over the past 12 months. Does this spell disaster? No, but this fiercely competitive environment underlines the need for differentiation and a distinct USP. So get your unique proposition right to have a chance of standing out in a busy marketplace.
Top tip: Check out our podcast, where Zilch cofounder and CEO Philip Belamant talks about how the BNPL company went from launch to unicorn status in just 14 months.
Due to an increased appetite for authentic interactions and reliable recommendations, content marketing is making moves. As a result, testimonials and user-generated content (UGC) are being harnessed by fintechs who want to attract and retain customers by taking a human approach. Shake up the way you speak to your audience by focusing less on advertising jargon and more on real-life and relatable experiences.
Top tip: Ensure you provide customer experiences that build trust and credibility. From high-converting creative to influencer marketing tactics that tap into a person’s followers and fan base, we provide a range of services to get your products in front of the right people.
We’ve noticed an interesting shift from standalone app-centric approaches to a more web-centric strategy. For example, some fintechs are now promoting web propositions that happen to have apps, which will naturally impact user interactions and the onboarding processes. Whatever your approach, it’s a valuable lesson in ensuring your web strategy is up to scratch.
Top tip: However people arrive at your landing page, it needs to capture attention. And while we don’t like to brag (cough), that’s exactly what we did for Minted when we collaborated to increase landing page conversion by 75%.
Talking of websites, as more and more search engines put a stop to cookies – Google plans to complete third-party cookie blocking in Q3/4 of 2024 – we can expect to see a significant impact on ad targeting and tracking. So what does this mean for digital advertising? We expect to see limitations on targeting specificity lead to broader audience categorisations and an increased reliance on AI as it ushers in a new era of contextual advertising.
Top tip: Contextual advertising is where the ads a user sees are based on the content they are looking at instead of their overall behaviour profile. So if someone’s reading about wealth management they’ll see ads for wreath-management products. This means the focus is well and truly on producing and distributing relevant content, which we might have mentioned, we’re pretty good at.
One thing’s for sure, social media (and Google Ads) will continue to reign supreme when it comes to reaching new and existing users – so don’t stop thinking about the channels where you need a presence and ways to improve your paid strategy. For B2C, we know Google Ads and relevant social platforms should form a significant portion of a fintech’s user acquisition strategy. For B2B, a combination of search and LinkedIn is often the best approach. As for budget, it’s all about the 80/20 rule – where the majority of the budget is allocated to the most effective channels.
Top tip: Understand how social media advertising can help fintech companies increase their visibility in search engine rankings, build web traffic and ultimately boost user acquisition with our Social Media Marketing Handbook.
You’re tracking your performance and looking at your acquisition reports. But remember, the metrics you should measure – from lead generation to ‘know your customer’ (KYC) completion and conversion – will vary based on the nature of the business. Just as the app download data we mentioned earlier doesn’t give the full story of these companies’ performance, you’ll want to look at the number of accounts opened, customer deposits and number of products. These are all far more useful benchmarks when it comes to understanding growth.
Top tip: The best thing you can do is strive to understand your ideal user’s goals and align your acquisition efforts to them. And, in the absence of granular targeting options, the significance of conversion rate optimisation comes to the forefront. Luckily, we’ve dedicated a whole podcast to highlighting how CRO is a powerful tool for impacting performance.
As the landscape continues to evolve, it’s never been more important to achieve sustainable month-on-month growth for your fintech company. Stay informed of trends, adapt to challenges and innovate both creatively and technically to scale your user bases. Contact us to find out how we can help.
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