A Strategy for Fintech Challengers to Beat Market Leaders

The divide between challengers and market leaders is growing ever bigger than previous years, especially in fintech. The statistics speak for themselves: over the past year, 70% of B2B market leaders have not just maintained, but further increased their market share, widening the gap with their competitors.

This shows how B2B buyers are increasingly gravitating towards established market leaders. We all know fintechs are great at being challengers, but can they be legacies? How can fintechs compete effectively in such an environment?

The answer lies in brand magnetism. This may sound like a fluffy term, but magnetic brands are ones that not only attract, but inspire confidence in buyers - Such an important idea behind customer acquisition, when buyers are weighing up the options between brands they know long term and up-and-coming competitors.

So, what exactly makes a brand 'magnetic'? 

Through comprehensive research and practical insights, we’ve identified four key elements: emotional connection, expansive influence, comprehensive credibility, and regulatory advantage. Thread these into your fintech PR for maximum success.

1. Emotional Connection

Understanding the emotional drivers behind B2B purchase decisions is paramount. The B2B realm has traditionally been dominated by rationality and logic, but actually, emotions matter more than ever. 

Challenger brands must understand the psyche of their target audience to uncover these emotional triggers. Tailoring your messaging to resonate with these emotions can create a powerful connection between your brand and potential buyers.

For instance, if reliability is a core concern among your audience, weave narratives around your brand’s dependability. If innovation excites your prospects, highlight forward-thinking solutions and cutting-edge technologies your fintech offers. Create content and campaigns that speak to these emotions authentically and compellingly.

On the whole, B2B buyers act in group situations, where risk aversion and saving face are of utmost importance. Fintechs who speak to these psychological triggers are the ones who win the race. 

2. Expansive Influence

As mentioned, in B2B transactions, the decision-making process is rarely the responsibility of a single individual. Instead, it involves a group of stakeholders, each with unique motivations and concerns. 

To build a magnetic brand, you must identify and target the entire buying group, including the often-overlooked 'hidden buyers' who wield significant influence behind the scenes.

Map out the decision-making ecosystem within your target organizations. Understand who the influencers are and what sways their opinions. Engage with them through targeted marketing efforts, personalized outreach, and value-driven content. 

Engaging multiple stakeholders not only amplifies your reach but also solidifies your presence in the collective mindset of potential buyers.

3. Comprehensive Credibility

In an arena where trust is a currency, establishing comprehensive credibility is crucial. Challenger brands can no longer rely on promises alone; they must demonstrate their value through proven experience, case studies, testimonials, and industry accolades.

Trust is especially important in the fintech sector, where organisations are dealing with confidential information and monetary decisions. Fintechs would do well to focus on building their reputations as dependable partners, with a history of wins and successes. 

Showcase your fintech's success stories and client testimonials prominently. Share insightful thought leadership content and participate in industry forums and events with fintech PR. Building a robust reputation takes time, but consistent positioning as an expert in your field will pay dividends in the long run.

4. Regulatory Advantage

The fintech industry is heavily regulated, and turning this challenge into an advantage can set your brand apart. By emphasizing your commitment to compliance and superior regulatory knowledge, you can build trust and credibility with prospective clients.

Highlight your fintech’s regulatory adherence in your brand messaging. Offering educational content on regulatory changes and how your solutions can help businesses navigate these complexities can position your brand as a trusted advisor and partner.

In conclusion, in a world where 70% of market leaders are widening the gap, challenger brands have an uphill battle. However, by focusing on creating a magnetic brand through emotional connection, expansive influence, comprehensive credibility, and regulatory advantage, your fintech can stand out and win over the market.

Adapting to these principles not only levels the playing field but enables challenger brands to carve out a distinct identity that resonates deeply with their audience. Building a magnetic brand isn't an overnight endeavor, but with a strategic, sustained effort, it’s a winning strategy that will differentiate your fintech in even the most competitive of markets.

Learn more about building a magnetic brand through our Business Intelligence Unit.

Need help? Hire a fintech PR agency to support your brand strategy

*Featured image credit to Eugene Chystiakov on Unsplash