Fintechs Excel at Being Challengers, But Can They Be Legacies?

After the 2008 recession and a drop of trust in banks, fintech companies emerged as dynamic disruptors, challenging the status quo and shaking up the financial world. 

Innovation, agility, and customer-centric solutions have been the hallmarks of fintech startups, enabling them to capture the imagination and wallet share of B2B and B2C consumers worldwide. Yet, as these fintech scaleups ride the wave of rapid growth, they face a critical question: 

Can they transition from being formidable challengers to becoming enduring legacy institutions?

To achieve this, scaleups must focus on strategic fintech PR to solidify their brand for the long haul.

The Challenger Advantage

Fintech companies have thrived as challengers by leveraging cutting-edge technology, data-driven insights, and an inherent ability to address pain points overlooked by traditional financial institutions. 

Their rise has been marked by the introduction of innovative products and services such as peer-to-peer lending, digital wallets, robo-advisors, and blockchain-based solutions. This adaptability has allowed fintechs to quickly capture market share, attract venture capital, and scale operations at an unprecedented pace. 

One of the key advantages fintechs have as challengers is their customer-centric approach. By placing the customer at the center of their operations, fintechs have reshaped financial services, offering transparency, lower fees, and better user experiences. This customer-first mentality, combined with the agility of smaller, tech-driven firms, has enabled fintechs to outmaneuver lumbering traditional banks, swiftly iterate their offerings, and meet the evolving demands of digitally-savvy consumers.

The Transition to Legacy Status

However, the journey from innovative upstart to established legacy institution is fraught with challenges. As fintechs scale, they must navigate complex regulatory environments, fend off competitors, maintain operational efficiency, and ensure robust cyber security measures. More importantly, they need to evolve their brand from being just disruptors to becoming trusted, long-term players in the financial services sector through strategic fintech PR. 

Legacy financial institutions, despite being criticized for their slow innovation, have built their status over decades, if not centuries. They possess deeply ingrained customer trust, brand recognition, and a vast pool of resources. For a fintech to become a legacy, it must achieve a similar level of trust and reliability while retaining its innovative edge.

The Role of Strategic Communications

This is where strategic fintech PR can play a pivotal role. Effective strategic communications can help fintech scaleups cement their position in the market, build trust, and create a lasting legacy. Here’s how:

1. Building Trust Through Transparency

Transparency is key to building trust. Fintechs must transparently communicate their business practices, data privacy measures, and how they safeguard customer interests. Publish regular updates, develop comprehensive FAQs, and cultivate an open dialogue with users. By doing so, they can assuage concerns and build a reputation of reliability and security.

2. Consistent and Cohesive Branding

To evolve from challenger to legacy, fintechs need a strong and cohesive brand identity that resonates with their target audience. This involves consistent messaging, visual aesthetics, and brand values across all touchpoints. A cohesive brand narrative helps create a unified image, fostering familiarity and trust over time. 

It helps to keep messaging simple. By the time communications and marketing teams are sick of their message, audiences are only just starting to notice it. 

3. Thought Leadership and Industry Contribution

Fintechs must position themselves as thought leaders in the industry. This can be achieved through publishing insightful whitepapers, hosting webinars, and participating in industry forums. By contributing to the broader conversation about the future of finance, fintechs can establish themselves as foundational voices in the sector, rather than fleeting disruptors.

4. Responsive Customer Engagement

Legacy institutions often have deep, long-standing relationships with their customers. Fintechs, though tech-driven, must not overlook the human element. Leveraging AI and automation for customer service is beneficial, but there should also be avenues for personalized, human interactions when needed. Regularly soliciting and acting on customer feedback can foster loyalty and cement long-term relationships.

5. Adapting to Regulatory Landscapes

Regulatory compliance is non-negotiable in the financial services industry. Fintechs must demonstrate their commitment to adhering to regulations. Transparent communication about compliance efforts, partnerships with regulatory bodies, and proactive adjustments to changing laws can elevate a fintech’s credibility as a stable, enduring entity.

6. Sustainability and Social Responsibility

Modern consumers are increasingly drawn to brands that demonstrate social responsibility and sustainability. Fintechs can differentiate themselves by actively engaging in sustainable practices and contributing to social causes. Highlighting these efforts in communications can help in building a positive, enduring brand image.

While fintech companies have proven their mettle as challengers, transitioning to become legacies requires a strategic, multifaceted approach. Among the many tools at their disposal, strategic communications stand out as crucial for building trust, establishing industry authority, and cultivating long-term customer relationships. 

By effectively leveraging strategic communications, fintech scaleups can not only sustain their rapid growth but also lay the groundwork for enduring legacy status in the financial services industry.

Need help? A fintech PR agency can support your brand strategy

Reach out to Clarity to learn more about creating long-term staying power for your fintech brand.