Consumers are embracing fintech solutions like mobile banking apps, credit monitoring tools, and the like at an astonishing rate. This ever-growing hunger for financial applications has led to the emergence of more than 26,000 fintech startups worldwide, and as of 2023, the fintech space is worth $179 billion.
While the rise of so many developers has been great for consumers, it's made it challenging for new applications to gain a foothold in the financial technology vertical. To stand out, your company must leverage marketing channels like partnership marketing.
There's a common misconception that partnership marketing works best with retailers and direct-to-consumer brands, but nothing could be further from the truth. Let's explore partnership marketing for fintech companies and how it can help your brand grow.
What is partnership marketing?
Partnership marketing is a strategic alliance between two or more businesses or individuals that is mutually beneficial to both partners and help both reach their objectives, usually by applying a performance-based payout model. Affiliate marketing and influencer partnership marketing are two examples of partnership marketing that are particularly appealing to fintech brands, as they provide a results-driven approach.
By using these channels, fintech brands can tap into existing audiences and build trust with potential customers through endorsements from trusted sources.
With affiliate marketing, your brand can:
- Track and measure the performance of partners in an efficient, scalable, and cost-effective way
- Drive sales, leads, new customers, etc. through unique partnerships after they've delivered on a desired action
- Create a win-win framework for both your brand and your affiliates that can make up a significant portion of online revenue, with high return on ad spend (ROAS) and low CPA
With influencer partnership marketing, your brand can:
- Tap into the global influencer market, which is expected to reach $21.1 billion in 2023, to achieve brand goals and revenue growth
- Forge partnerships with social media influencers using a performance-based lens
- Build trust and credibility, connect with new audiences, and maximize ROAS
In the fintech space, partnership marketing represents a great tool for differentiating your application from other options. When consumers see their favorite influencer endorsing your product/service or stumble across an affiliate offering a 30-day free trial, they're much more likely to visit the app store and download your solution.
The rise of influencer affiliates and the growing demand for better measurement of influencer marketing outcomes have made influencer partnership marketing an attractive option for fintech companies. Leveraging the established rails of the affiliate partnership marketing ecosystem, these companies can not only effectively measure the performance of their influencer partnerships, but also shift towards outcome-based models that align incentives with measurable results.
5 steps to incorporate partnership marketing into your mix
Incorporating a new marketing channel may appear challenging, but implementing partnership marketing can be a straightforward approach that enhances your return on ad spend (ROAS) and efficiently reinforces your tactics for acquiring new customers. If you're interested in using partnerships to grow your business, we suggest you start by:
1. Find niche influencers
Influencers have the power to affect purchase decisions of others because of the relationship and trust cultivated with their unique audience – even within the fintech space, these types of partnerships can be hugely beneficial.
When leveraging influencer partnership marketing, it may be tempting to seek out individuals with the largest following. However, we often find that the macro creators do not generate the outcome-driven results brands are looking for. By partnering with nano, micro, and mid-tier influencers, you can more effectively tap into niche audiences to drive favorable outcomes.
These types of influencers are also more cost-effective to work with, especially for initial testing and learning, because their rates come at a lower price point.
2. Connect with compliant and diverse affiliates
It can be incredibly lucrative to acquire high-value customers in the competitive fintech space. Most fintech brands know they need a custom affiliate program designed to meet their goals and adhere to accuracy and compliance standards if they want to achieve this goal.
An experienced program management agency can help your brand find diverse affiliate partners—from review sites that share links to your app to affiliates that provide consumers with discounts or free trials of your service, there are lots of different affiliate types to choose from.
Select a variety of partners who align with your brand and goals while remaining regulatory compliant. It's important partners are able to pivot as new regulations are introduced so that you always have a safe and successful affiliate marketing strategy.
3. Identify key markets
Identifying key markets is critical to the success of your affiliate program. When you know which consumers have the highest chances of converting, you can help your partners determine where and how to market your app.
During this phase, you'll segment your audience into various subcategories. From there, you can create tailored marketing content for each demographic based on their unique pain points and goals.
4. Gather and analyze your data
Working with affiliates and influencers doesn't just expand your reach. It also gives you access to tons of new data. Make sure you use it.
For instance, ask your new influencer partners what types of content earn the most attention among their following. One influencer's followers may love videos, whereas another's gravitates toward polls. With that in mind, give your partners the freedom to use your branded content in a way that speaks to their respective audiences.
5. Team up with Acceleration Partners
Partnership marketing can be complex, and maximizing your ROI may require expertise beyond your internal capabilities. That's where Acceleration Partners (AP) comes in. As a leader in partnership marketing, we can help you overcome the growing pains associated with this channel, so you can focus on what you do best - growing your business.
Our tailored teams, experienced account managers, and proven track record of success make us the ideal partner to help you achieve your partnership marketing goals. AP works with brands to understand the goals and the unique challenges they face in the partnership channel, delivering powerful results for fintech and software clients alike.
Whether you're looking to acquire new app users, increase brand awareness, or drive better online sales, AP is up to the task.